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These cost estimates are to inform the customer of the anticipated
contract price for the services and performance standards established in
preceding steps. If necessary, adjustments are made to meet budgetary
2-300 THE MASTER PLAN. While many factors have to be considered when
packaging a contract, there are three underlying parameters which together
form the foundation of public works support by contract. Figure 2-2
illustrates these building blocks of a facility support contract and the
paragraphs that follow discuss their importance to the planning process.
2-301 Mission Requirements. Meeting the mission is the primary focus of
the local Commanding Officer and the Contracting Officer alike.  To
effectively meet an installation's requirements with contract services, it
is useful to categorize mission elements into scheduled and unscheduled
activities.  Scheduled activities are those requirements which are
continuous or regularly occurring. They are relatively easy to count or
quantify because the customer is in a position of having specific knowledge
of the requirements, for example, clean the filters weekly, empty the
container daily, man the gate round the clock, etc.  Unscheduled activities
are those requirements which occur on an indefinite basis, for example, when
it snows - plow the streets, when the air conditioner breaks - repair it,
etc.  These activities are difficult to quantify because the customer cannot
be certain of his/her specific needs. Making this distinction early in the
procurement planning process is important because contractors measure
uncertainty in terms of risk, and risk is the principal factor in selecting
the most effective contract type.
2-302 Labor Laws.  Labor laws are among the many laws that govern
procurement. Two labor laws are of particular importance to the procurement
planning process, the Davis-Bacon Act (40 U.S.C. 351) and the Service
Contract Act (41 U.S.C. 351). The Davis-Bacon Act sets minimum wage rates
for those contractor employees who are engaged in a task or project which is
individually valued at $2,000 or greater and involves construction,
renovation, alteration, or repair type work.  The Service Contract Act (for
contracts greater than $2,500) sets minimum wage rates for those contractor
employees who are engaged in ongoing plant operation and maintenance
services.  when service and construction work are combined in the same
contract, the Service Contract Act applies to its construction type work
where individual projects are valued at less than $2,000.  It is important
for the contracting Officer and the specification writer, to make the
appropriate distinction in the type of work being performed. Many of our
facility support contract requirements involve both laws, and it is not
enough that we meet the needs of the mission but conformance with the
applicable laws is also required. Labor laws are discussed further at
2-303 Contract Specifications. The third dimension of our building block
model is the contract specification itself. The specification is the


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