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Transmittal Memorandum 24:  Pay raise assumptions and inflation factors.

Comptroller General - Key Excerpts

LBM's reliance on the DOD A-76 Costing Manual language quoted above is misplaced, because its interpretation fails to take into consideration other provisions of the manual that recognize the need to take the effective periods for wage rates into consideration when applying inflation factors. In this regard, as noted, the FWS employees at issue are governed by FWS wage determinations issued in September and are valid for 12 months. However, FWS employees in other locations may be governed by wage determinations issued at different times throughout the year. In contrast, General Schedule (GS) employees are governed by adjustments to the GS rates that occur in January of every year. While the Transmittal Memorandum includes inflation factors with a January effective date, the DOD A-76 Costing Manual seeks to accommodate the different effective dates of wage increases for different employee groups in the following stated policy for application of the inflation factors discussed above:  The General Schedule (GS) salary table is effective for the calendar year while the Federal Wage System (FWS) pay table is effective for twelve months beginning in any month of the year. win.COMPARE2 uses . . . GS Annual Salaries [and] . . . FWS Hourly Wages . . . effective periods as the baseline for determining the need for inflation when coupled with the performance period dates . . . . DOD A-76 Costing Manual at 35 (emphasis supplied).   (LBM, Inc., B-291775, March 21, 2003)  (txt version)

Comptroller General - Listing of Decisions

For the Government For the Protester
LBM, Inc., B-291775, March 21, 2003  (txt version)  

 

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