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dkubis

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Everything posted by dkubis

  1. We correspond the term bid options to the definition of options under 2.101 where we may at a later time elect to purchase additional services unilaterally when funding becomes available. Based on your description, these would not be additive bid items. It would be more correct to just call them options. I did not know about the progress payments clause for demolition. The project is demolition with site restoration. The reason why site restoration is called landscaping is because we don't want to make this a construction contract. At least that's the theory behind it. We are asking them to demolish buildings and restore the land instead of just leaving a bunch of dirt or some big holes. You're right, I have never done demolition contracting so any help would be great.
  2. Vern, We're going to go with Far 13, Services for demoliion work and a small part landscaping. We want to solicit for bid options for work that can be done when funding becomes available. We do not want to provide contract financing. We will not pay for percentage complete. A lot of people get confused about this since this has a "construction" feel that we would pay percentage complete on the demolition and landscaping work. Since this project will take months to do we might break up the work into jobs, such as separting the buildings to be demo'd and pay per building as the contract progresses. I guess the original question was can we use bid options that are in construction contracting for services contracts. It was just because I have never used bid options in service contracts except for extending the period of performance. Far 17.2 Options actually says that subpart does not apply to contracts for "(a) services involving the construction, alteration, or repair (including dredging, excavating, and painting) of buildings, bridges, roads, or other kinds of real property;" But it reads below "However, it does not preclude the use of options in those contracts." I did not see that part until later so it appears you can use bid options for services that involve construction.
  3. You're right, as long as you follow certain requirements, you can allow for bid options on a services contract.
  4. The payments clause does not allow for progress payments for fixed price service contracts. You have to pay for supplies delivered or for services rendered. You couldn't say you're 30% done with demo so we'll pay you 30%. You can however setup line items and split the demo work up such as demo buildings 1-3 and 4-6 and when they are finished on those line items they can ask for a partial payment on those line items only. On the example you gave on a construction contractor only finishing 30% of the building we have certain remedies to fix that. Maybe we withheld retainage or maybe we need to go to their performance bond to finish the job. Also, the payment clause for construction allows for progress payments.
  5. It's because progress payments on the services side are considered contract financing. There isn't a progress payment clause that allows for progress payments on services. We wouldn't want to pay a contractor 30% of a job and then they just quit on us. Let's say it was for landscaping and they only cut 30% of the grass in a big field, what good what that do us? We pay what the bid schedule says, lump sum, job, deliverable, but not percentage complete.
  6. Sorry, no I mean options as in bid alternatives that you see in sealed bidding or contruction contracting. Not the options to extended the contracting terms and conditions...
  7. Has anyone done bid options similar to ones used in construction contracting in a service contract? We're trying to do some demo work, 90% demo, 10% site restoration as a service contract but the PM wants to put bid options on the schedule. We have a problem here in this office which primarily does construction by incorporating construction terms into our services contracts. For instance on past services contracts we've tried to make progress payments or withold retainage. I'd like to hear from someone familiar with both Services and Construction contracting.
  8. Where does it say in the FAR that you must obligate your minimum order at the time of award of the contract?
  9. To issue a TO off of a Construction MATOC, is it really necessary to issue a 1442? It just seems like that's extra work and defeats the purpose. To me if it's already on an IDIQ it would be enough to just issue a Task Order, assuming all the terms and conditions are met. Am I wrong or what?
  10. Joel, I see your point. it really is just one CO in the office who belives it that way. She managed to convince the division chief of this. I like your examples but we are a non-DoD agency so they don't like DoD references. It clearly states in the Corp of Engineers manual and NAVFAC guidance that DB is construction. For some reason though that's not enough to convince this person. As far as having AE clauses in a construction contract, that does not make any sense. If you can find a better reference that DB is a construction contract that would be great.
  11. D/B is sort of a unique animal and has such a small place in the FAR. As far as I know the AE portion of the DB project does not fall under the Brooks Act. However, there is nothing that precludes you from putting both Prompt Pay FAR clauses in your contract, the AE Prompt Pay Clause and the Construction Prompt Pay Clause. When you award a DB contract what designates it as a Construction Contract besides what form you choose to use? What stops you from awarding to the AE firm for a DB project? Does that mean the entire contract falls under Brooks? Does that mean the whole project is paid on 30-day pays?
  12. Hey, Serious discussion in our office about this. We're a large construction buying office but don't do too many design-build projects. Apparently some COs believe that the 14-day prompt pay for construction projects don't apply to the entire project. Their arguement is that design work should be paid on 30-day prompt pay and when they get to the construction phase it should be 14-day pay. The majority of the office says it's just a construction contract and that the whole conctract should be paid under 14-day pay. Is there any documentation that states it should be one way or another?
  13. Not having the contractor's signature on the BPA will not make it invalid. If it's missing the CO's signature then it would definitely be invalid. The only part where the contractor "agrees" to the agreement is when he delivers goods or performs services in relationship to a valid call against that BPA. Even then the contractor still does not need to sign anything to signify he/she agrees to the terms and conditions. The very act of performing services/delivering goods binds the contractor to the BPA terms and conditions and forms a contract. P.S. Where is the contractor supposed to sign anyway?
  14. I don't see how the contractor's signature changes anything since the BPA in itself is not a contract. When someone makes an order against the BPA they are in a sense extending an offer to the contractor, under the terms and conditions of the BPA. The contractor can reject the order and not suffer any consequences. However, if they fullfill the order then they are accepting the terms and conditions including all clauses included in the BPA. How does a signature on the BPA change any of this?
  15. Hi I was wondering if the contractor was required to sign a BPA?
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