29 C.F.R. § 4.143

Effects of changes or extensions of contracts, generally

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(a) Sometimes an existing service contract is modified, amended, or extended in such a manner that the changed contract is considered to be a new contract for purposes of the application of the Act's provisions. The general rule with respect to such contracts is that, whenever changes affecting the labor requirements are made in the terms of the contract, the provisions of the Act and the regulations thereunder will apply to the changed contract in the same manner and to the same extent as they would to a wholly new contract. However, contract modifications or amendments (other than contract extensions) that are unrelated to the labor requirements of a contract will not be deemed to create a new contract for purposes of the Act. In addition, only significant changes related to labor requirements will be considered as creating new contracts. This limitation on the application of the Act has been found to be in accordance with the provisions of section 4(b) of the Act.

(b) Also, whenever the term of an existing contract is extended, pursuant to an option clause or otherwise, so that the contractor furnishes services over an extended period of time, rather than being granted extra time to fulfill his original commitment, the contract extension is considered to be a new contract for purposes of the application of the Act's provisions. All such “new” contracts as discussed above require the insertion of a new or revised wage determination in the contract as provided in § 4.5.

Notes of Decisions

Cited in 4 cases (2 in the last 5 years), 1982–2025 · leading case: Call Henry, Inc. v. United States

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Call Henry, Inc. v. United States (2017) cafc “See 29 C.F.R. § 4.143 (b); see also Lear, 457 F.”

Broad Avenue Laundry & Tailoring v. United States (1982) cc “It says, 29 C.F.R. § 4.143 and ff, 4.161, that wages effective at the start of an ongoing contract may be changed by "[a] change in the Fair Labor Standards Act minimum by operation of law * * She (not being an attorney) supposed that a new DOL prevailing wage determination…”

BAE Systems Technology Solutions & Services Inc. (2024) asbca · cites it 2× “Both the FAR and DOL’s regulations also explain that when an existing contract is extended, such as via an option clause, the extension is considered a new contract and requires the insertion of a new or revised wage determination.”

HD Inc. (2025) asbca “In this respect, the Air Force is correct that, although HDI could negotiate new wages in the option years through subsequent CBAs, those wages could not fall below the floor set in the predecessor contractor’s CBA.”

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