A fixed price contract to operate and maintain vehicles at an Air Force base provided for the right of the Air Force to extend performance for short periods and entitled the contractor to price adjustments to reflect increases in wages and fringe benefits.  The Air Force extended the contract for several months and the contractor did not schedule vacations for its employees so they would be available but paid them for unused leave.  It sought reimbursement but the Air Force refused and in its appeal the Court ruled against the contractor stating the inability to schedule employee vacations was “a management issue” and the increased costs was not brought about by compliance with a wage determination that was provided in the contract (Tecom Inc., ASBCA, No. 51880).   

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