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  1. Vern, Thank you. Your post #7 answered my question exactly. I just wonder how so many of our collegues interpret this so differently that it is viewed as "common practice".
  2. I am not sure how anyone could think that I am confusing funding with pricing. Forgive me if I did not clearly state my thoughts. This is a funding question. The IDIQ and all options were priced and evaluated during the original award process. The guaranteed minimum was satisfied with the issuance of the first order. This is a question on whether FAR 17.207(f) applies to funding for IDIQs with Options at the TO/DO level. I am told that if the minimum guaranteed is met during the base year via a TO/DO, you can exercise an Option without an actual obligation because exercising the option would not require the government to buy anything, as this only preserves the Option Period. And that you would need funds only to cover the obligation made on the subsequent TO/Dos. I hope that I am a bit clearer!
  3. I was assigned to administer an IDIQ contract with Options. FAR 17.202((2) says that an indefinite quantity contract can have options. We wish to exercise the IDIQ option. Since the IDIQ contract is unfunded as a whole (there are no funds required) does it follow that therefore we don’t need any funds to exercise the option? If there are no funds required on the base contract does this mean that there is no financial commitment on the IDIQ to verify funds for the option and that the Option is unpriced or $0? To exercise an unfunded Option appears to go against FAR 17.207©(1) and 15.403-2(a), which states that the exercise of an option must be at the price established at contract award or initial negotiation. Please clarify, is this correct?
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