Fara Fasat on Friday, May 10, 2002 - 06:46 pm:
I have an interesting situation developing. Under DPAS, a
contractor is required to accept a rated order unless certain
exceptions are met. What about an existing, unrated purchase
order, to which the buyer wants to add a rating to one of the
quantities (out of 8 total)? In other words, the buyer wants to
mod the order to add a rating to a partial quantity.
Is the seller obligated to accept this modification under the
same standards as it would an initial order? My answer is no,
because the law and the regs all talk about contracts or orders,
and a rated order is defined as "a prime contract, a
subcontract, or a purchase order ...." This doesn't seem to
leave room for changing an unrated order for partial quantities.
Any other thoughts?
Vern Edwards on Saturday, May 11, 2002 - 11:45 am:
The contractor must accept the modification under the same
standards as an original order. See 15 C.F.R. 700.16, Changes
or cancellations of priority ratings and rated orders,
especially paragraph (b), which reads as follows:
"If an unrated order is amended so as to make it a rated order,
or a DO rating is changed to a DX rating, the supplier must give
the appropriate preferential treatment to the order as of the
date the change is received by the supplier."
Vern Edwards on Saturday, May 11, 2002 - 11:47 am:
P.S., 15 C.F.R. 700.16, paragraph (a), allows the the agency to
modify the order unilaterally.
Vern Edwards on Saturday, May 11, 2002 - 01:54 pm:
P.P.S. Correction to my last post--15 C.F.R. 700.16 does not
allow an agency to modify an unrated order unilaterally. It only
authorizes an agency to unilaterally modify the rating on a
I assume that the authority to rate an unrated order is the same
as the authority to issue a rated order in the first place.
Fara Fasat on Monday, May 13, 2002 - 12:53 pm:
Thanks Vern. That looks to be the answer.
Fara Fasat on Tuesday, May 14, 2002 - 02:27 pm:
Now that we have established the authority to change an
unrated order to a rated order, I have a question regarding the
interpretation of the preferential treatment that a supplier
must give to rated orders. When determining whether it can meet
the required delivery date, is the supplier required to give
priority to the rated order over unrated orders for the same
product, or over all other work on the production line? If the
latter, this can have a tremendous impact.
Vern Edwards on Tuesday, May 14, 2002 - 02:43 pm:
The rules about preferential scheduling are in 15 C.F.R.
700.14(b), and read, in pertinent part, as follows:
"(a) A person must schedule operations, including the
acquisition of all needed production items, in a timely manner
to satisfy the delivery requirements of each rated order.
Modifying production or delivery schedules is necessary only
when required delivery dates for rated orders cannot otherwise
(b) DO rated orders must be given production preference over
unrated orders, if necessary to meet required delivery dates,
even if this requires the diversion of items being processed or
ready for delivery against unrated orders. Similarly, DX rated
orders must be given preference over DO rated orders and unrated
Examples: If a person receives a DO rated order with a delivery
date of June 3 and if meeting that date would mean delaying
production or delivery of an item for an unrated order, the
unrated order must be delayed. If a DX rated order is received
calling for delivery on July 15 and a person has a DO rated
order requiring delivery on June 2 and operations can be
scheduled to meet both deliveries, there is no need to alter
production schedules to give any additional preference to the DX
The rule talks about "orders," and does not say that preference
is only given among orders for the same item.
Kennedy How on
Wednesday, May 15, 2002 - 12:12 pm:
I'm deferring to your cite on the matter, but back when I was in
Contracting 101, it seemed to me that everybody was talking
mainly that a higher rated order had priority over anything else
going on in the plant (same item or no). I seem to recall our
instructors sayint the same thing.
Our activity generally rates it's orders either DO or DX. My
section did mainly DO while our sister section did DX. Don't
recall if we ran into a DO/DX conflict over the exact same item,
but I do know that we shared a common pool of contractors, who
were pretty well versed in this DPAS ratings arena. I seem to
recall that a contractor came to us to give us a "heads up" that
they may be late in delivering on our order due to a hot
DX-rated order that had priority. I don't know if we dinged him
on performance or not, I'm sure we noted it, but the ACO
probably sent a notice of deliquency due to DX-rated orders
coming in. Theoretically, I suppose, we could zing him on being
overloaded, but when you bid on work, you take your chances (by
this I mean winning more than you can handle in a short time).
I do recall once a contractor abandoning our DO rated order for
commercial work which was his bread and butter (ours was a fill
in to keep his folks employed). We just clobbered him on
delinquency and failure to perform, I don't recall pointing out
the DO rating issue to him.
Vern Edwards on Wednesday, May 15, 2002 - 02:50 pm:
I interpret the C.F.R. as meaning that a DX-rated order takes
precedence over all DO-rated orders and all unrated orders in
the plant, and that a DO-rated order takes precedence over all
unrated orders in the plant.
In other words, I think you and I share the same understanding
of the rating system. Keep in mind, however, that I am citing
the rules as stated in the C.F.R. I have not checked for any
Kennedy How on
Thursday, May 16, 2002 - 12:03 pm:
Yes, I think so as well.
on Wednesday, May 22, 2002 - 01:47 pm:
I think you are both correct as relates to the order of
precedence of rated orders but the item of supply still has to
be in an approved program before the rating has any effect .....does'nt