Failure To Include Escalation Clause To Cover Possible Increased Wages

A company protested the failure of the agency to include an escalation clause to cover increased wages which may be paid under a contract. The agency is not required to include an escalation clause in the solicitation to provide for possible increases in wages which may occur as a result of collective bargaining after bid opening. The wage rate determination of the Secretary of Labor establishes minimum wages in a locality and is not a guarantee that workers can be employed at those rates; it is the bidder's responsibility to include potential wage increases as a factor in contract price. The new collective bargaining agreement provided no basis for cancellation of the solicitation.