Service Contract Act Price Adjustment Calculation Tool (PACT)
General Concept Summary:
The Service Contract Act Price Adjustment Calculation Tool (SCA-PACT or PACT) is the most comprehensive translation of Federal Acquisition Regulation (FAR) and Code of Federal Regulation (CFR) policy related to the Service Contract Act into a mathematical calculation for economic factors of a contract price adjustment. It consists of both a spreadsheet format for contractors to submit a price adjustment proposal, and the pre-programmed spreadsheet (the PACT) into which the proposal is “dumped” for calculation and analysis by a Government Contract Specialist. PACT incorporates regulations for allowability of a contractor’s proposal into mathematical relationships and visually separates information for closer analysis using various logic tests to apply the correct formula to the correct subset of hours entitled to adjustment. PACT is capable of capturing both SCA and Davis-Bacon Act (DBA or DB) requirements, thereby accommodating the most complex “combination” contracts. PACT is also able to accommodate multiple SCA wage determinations (WD) on the same contract. Further, PACT performs high level analysis by summarizing and subtotaling the contractor’s raw data on several different factors to draw out data integrity, validity, consistency, and allowability of the proposal. A user-friendly “wizard” interface explains the analysis steps required by the contract specialist to validate the data PACT calculates; similar to TurboTax for price adjustments. Currently, there is little if any time dedicated to those types of checks because of the inordinate time it takes to calculate a number for price adjustment. PACT also goes beyond other less standardized processes in that it enables contracting personnel to allocate the increases to contract line items thereby substantially expediting the funding process, not just the adjustment calculation.
Scope Magnitude:
PACT can be applied to virtually every federal service contract that requires price adjustment in the United States (i.e. multi year or multiple option year contracts). This includes all federal agencies, not just branches of the military services or DoD. To further explain that statement, all multi-year or option year contracts using standard SCA Wage Determinations and a great majority of contracts whose employees are governed by collective bargaining agreements will be able to utilize PACT. Those Davis-Bacon Act contracts requiring price adjustment will also be able to utilize PACT.