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AEDC Contractor Employee Transition Questions and Answers
General Wages and Benefits
April 28 Release
1. My ability to continue my education at UTSI was a major reason that I came to work at AEDC after college. Will future contractors be required to maintain AEDC's 50 year relationship with UTSI by providing tuition reimbursement to their employees in the same manner that ATA currently does?
AF Response: Potential offerors have been made aware of this relationship with UTSI, as well as the benefit that has historically been provided to the contractor workforce. The government is in the process of determining how the topic will be addressed in the future contracts.
2. An answer given on minimum pay and benefits for salaried employees stated that exempt salaried employees have limited protection based on Federal Acquisition Regulation (FAR 52.222-46). A selected passage in this FAR is the following: As a part of their proposals, offerors will submit a total compensation plan setting forth salaries and fringe benefits proposed for the professional employees who will work under the contract. The Government will evaluate the plan to assure that it reflects a sound management approach and understanding of the contract requirements. Based on this FAR, it would be good to know what supporting information will be included in Jacob's submitted total compensation plan for the next contract, specifically what regional data will be used. To attract and retain a technically excellent workforce, it will be necessary to prevent excessive pay compression while also keeping up with the market for new hires. So again, it is good to see that a plan with supporting data does need to be submitted which will be reviewed by the government, but it would be nice to know what supporting data will be included.
ATA Response: The purpose of the 52.222-46 "Evaluation of Compensation for Professional Employees" is to ensure that offerors are providing compensation adequate enough to recruit and retain a qualified workforce. Details concerning Jacobs or other contractor's total compensation plan for future contracts are Competition Sensitive. In general, to calculate labor costs, the numbers of employees in each grade level, the average salary per grade level, and average costs for fringe benefits are the types of data that must be submitted.
April 16 Release
1. For the AEMTC represented employees, will current rates of pay continue for the first year of the new contract? Is it possible for a new contractor not to have a continuation of the current rate of pay for the first year of the contract? Could a contractor enter into CBA negotiations prior to the expiration of the current CBA agreement and this provision not apply since negotiations are underway?
ATA Response: An AEMTC or IGUA represented employee will have their current CBA pay rates in effect while negotiations are in progress with a new contractor. This is particularly critical if there is a gap between when the current CBA expires and when the new CBA is ratified. The Service Contract Act defines the one year period from successor contract award date and not the contract starting date. SCA also ends the successorship period when a CBA is reached between the successor and union or the employer and union bargain to a complete impasse. In the event a new agreement is not negotiated within the one year then wages revert to the area wage determination (i.e. Service Contract Act)
2. What happens to severance pay during/after the transition?
ATA Response: Severance for employees terminated from ATA will be paid in accordance with the ATA Severance Plan Document. This document is also reflected in the provisions of the AEMTC and IGUA Collective Bargaining Agreements (CBAs). Clause H:104 on ATA's contract states that severance will not be paid to employees who are employed by a succeeding contractor within 12 months of termination date (during the ATA Contract, ATA is its own successor). The ATA Severance Plan Document includes provisions regarding personnel being rehired by ATA after discharge. FAR 31.205-6(g) includes: Payments made in the event of employment with a replacement contractor where continuity of employment with credit for prior length of service is preserved under substantially equal conditions of employment, or continued employment by the contractor at another facility, subsidiary, affiliate, or parent company of the contractor are not severance pay and are unallowable." Handling of ATA severance repayment if rehired within the one year period following the end of the ATA contract will need to be defined by the AF as part of ATA's contract closeout plan. Continuity of severance benefits after transition and inclusion in future contract requirements is a decision by the AF contracting office and future contractors.
3. Will the AF require AEDC Years of Service be recognized by future contractors?
AF Response: Generally, "years of service" is recognized, IAW 29 CFR 4.173, for purposes of determining vacation entitlement. Seniority and the privileges associated with that are another matter and are generally not protected by the Service Contract Act's section 4(c) provisions. However, the particulars of the negotiations between the new employer and employees (or their representative) must be taken into account.
April 4, 2014 Release
1. Are there any minimum requirements for employee benefits that the new AEDC contractors have to provide?
ATA Response: Yes, employee benefits for Wage and non-exempt salaried (NES) employees are covered by the Service Contract Act, which requires continuity of equivalent total compensation for a period of one year for successor contracts. Beyond the one year continuation of equivalent compensation, the Department of Labor issues minimum wages and benefits (or cash in lieu of) that must be paid on AEDC service contracts. This is accomplished by the issuance and posting of periodic Wage Determinations. There should be a current Wage Determination on each ATA official bulletin board. For Exempt Salaried employees there is a FAR clause (FAR 52.222-46 - Evaluation of Compensation for Professional Employees) which provides limited protection of employee salary and benefits for successor contracts.
2. For many years, we have been told that there has to be parity between the contactor benefits and the civil service benefits. Is parity still an objective?
AF Response: There is no requirement for there to be parity between the contractor benefits and the civil service benefits.
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