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SubK

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  1. Additionally, he just informed me he called the contracting officer and this is an email he sent me: I called the CO and he said the FAR is pretty explicit in its guidance—its’ not allowed. However, there was a GAO protest filed about this and the Govt sided with the protester who had escalated rates in their proposal. Apparently the Air Force has decided use the guidance from that GAO case that stated if you add escalation they will honor it, so BL, we can escalate but I would prefer not to…I’ll leave it up to you guys. Here is the verbiage form the FAR: The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months.
  2. After having this conversation again with my co-worker his rational is that statement "These rates may be adjusted only as a result of revisions of prevailing labor rates provided by the Secretary of Labor." To me, "These rates" refers to the rates specified in the contract, being our NTE rates for that period of performance, and if the base year of the Solicitation falls on OP 1, we use OP 1 NTE rates from the IDIQ, and if that 6 month extension falls in OP 2 of the IDIQ base rates we COULD use those NTE rates. Appearantly he called the contracting officer and this is an email he sent me: I called the CO and he said the FAR is pretty explicit in its guidance—its’ not allowed. However, there was a GAO protest filed about this and the Govt sided with the protester who had escalated rates in their proposal. Apparently the Air Force has decided use the guidance from that GAO case that stated if you add escalation they will honor it, so BL, we can escalate but I would prefer not to…I’ll leave it up to you guys. Here is the verbiage form the FAR: The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months.
  3. I posted this question in the beginners forum and received an answer, however after reading a topic from 2014 called "Dash 8 Clause (FAR 52.217-8) and Major Contracting Services GAO decision", I thought I should post again to get more feed back.... We have received an RFP on an IDIQ for a base year, and one 6 month period, that is considered an Option to Extend the contract. My question is, are we allowed to include escalation on the 6 month extension period since they are including it in the evaluation of the total price? A co-worker of mine, who is not in contracting says we are not allowed to, but he is not sure. His rational is that statement "These rates may be adjusted only as a result of revisions of prevailing labor rates provided by the Secretary of Labor." To me, "These rates" refers to the rates specified in the contract, being our NTE rates for that period of performance, and if the base year of the Solicitation falls on OP 1, we use OP 1 NTE rates from the IDIQ, and if that 6 month extension falls in OP 2 of the IDIQ base rates we COULD use those NTE rates. But I am not nearly as experienced as many of you, any light you could shed will be helpful. The solicitation includes this clause: I. SIX MONTH EXTENSION IAW FAR Clause 52.217-8, Option to Extend Services (Nov 1999), the Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions of prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within 30 days. The Government may require continued performance of the contract IAW FAR Clause 52.217-8. If the option to extend services clause is exercised, the price for current option period will be pro-rated IAW FAR Clause 52.217-8 at the rates specified for that option period. However, at 17.203 -- Solicitations. (a) Solicitations shall include appropriate option provisions and clauses when resulting contracts will provide for the exercise of options (see 17.208). (b) Solicitations containing option provisions shall state the basis of evaluation, either exclusive or inclusive of the option and, when appropriate, shall inform offerors that it is anticipated that the Government may exercise the option at time of award. (c) Solicitations normally should allow option quantities to be offered without limitation as to price, and there shall be no limitation as to price if the option quantity is to be considered in the evaluation for award (see 17.206). (d) Solicitations that allow the offer of options at unit prices which differ from the unit prices for the basic requirement shall state that offerors may offer varying prices for options, depending on the quantities actually ordered and the dates when ordered. (e) If it is anticipated that the Government may exercise an option at the time of award and if the condition specified in paragraph (d) above applies, solicitations shall specify the price at which the Government will evaluate the option (highest option price offered or option price for specified requirements). (f) Solicitations may, in unusual circumstances, require that options be offered at prices no higher than those for the initial requirement; e.g., when -- (1) The option cannot be evaluated under 17.206; or (2) Future competition for the option is impracticable. (g) Solicitations that require the offering of an option at prices no higher than those for the initial requirement shall -- (1) Specify that the Government will accept an offer containing an option price higher than the base price only if the acceptance does not prejudice any other offeror; and (2) Limit option quantities for additional supplies to not more than 50 percent of the initial quantity of the same contract line item. In unusual circumstances, an authorized person at a level above the contracting officer may approve a greater percentage of quantity. (h) Include the value of options in determining if the acquisition will exceed the World Trade Organization Government Procurement Agreement or Free Trade Agreement thresholds.
  4. The LCAT's are not subject to SCA. Do you happen to have a FAR Clause to reference or rational behind this? Is it because 17.203 -- Solicitations - (C) that I quoted above? I just want to have something to stand on when I present this to him. Thanks!
  5. Yes, the solicitation allows us, and asks us to price the six month extension. In the solicitation they state it is an option to extend the contract for a period up to six months, and ask us to price it.
  6. We have received an RFP for a base year, and one 6 month period, that is considered an Option to Extend the contract. The solicitation includes this: I. SIX MONTH EXTENSION IAW FAR Clause 52.217-8, Option to Extend Services (Nov 1999), the Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions of prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within 30 days. The Government may require continued performance of the contract IAW FAR Clause 52.217-8. If the option to extend services clause is exercised, the price for current option period will be pro-rated IAW FAR Clause 52.217-8 at the rates specified for that option period. 17.203 -- Solicitations. (a) Solicitations shall include appropriate option provisions and clauses when resulting contracts will provide for the exercise of options (see 17.208). (b) Solicitations containing option provisions shall state the basis of evaluation, either exclusive or inclusive of the option and, when appropriate, shall inform offerors that it is anticipated that the Government may exercise the option at time of award. (c) Solicitations normally should allow option quantities to be offered without limitation as to price, and there shall be no limitation as to price if the option quantity is to be considered in the evaluation for award (see 17.206). (d) Solicitations that allow the offer of options at unit prices which differ from the unit prices for the basic requirement shall state that offerors may offer varying prices for options, depending on the quantities actually ordered and the dates when ordered. (e) If it is anticipated that the Government may exercise an option at the time of award and if the condition specified in paragraph (d) above applies, solicitations shall specify the price at which the Government will evaluate the option (highest option price offered or option price for specified requirements). (f) Solicitations may, in unusual circumstances, require that options be offered at prices no higher than those for the initial requirement; e.g., when -- (1) The option cannot be evaluated under 17.206; or (2) Future competition for the option is impracticable. (g) Solicitations that require the offering of an option at prices no higher than those for the initial requirement shall -- (1) Specify that the Government will accept an offer containing an option price higher than the base price only if the acceptance does not prejudice any other offeror; and (2) Limit option quantities for additional supplies to not more than 50 percent of the initial quantity of the same contract line item. In unusual circumstances, an authorized person at a level above the contracting officer may approve a greater percentage of quantity. (h) Include the value of options in determining if the acquisition will exceed the World Trade Organization Government Procurement Agreement or Free Trade Agreement thresholds. My question is, are we allowed to include escalation on the 6 month extension period since they are including it in the evaluation of the total price? A co-worker of mine, who is not in contracting says we are not allowed to, but he is not sure.
  7. Thanks, Vern. I received the ruling number, and it was a protest on a GSA schedule Task Order for the Air Force. File B-411481.3
  8. The contracting office had been okay with it until now. They apparently had a GAO protest regarding the issue and that is what is driving all of this. I have yet to receive a copy of the protest and cannot find it on the GAO website. The agency is not GSA, it is DIA.
  9. We are currently performing on both of these task orders. The end of the option periods are both around Sept time frame, with 2 more option periods left for each task order. The base contract (IDIQ) has a POP that ended February of 2016.
  10. The IDIQ period of performance is over, and adding the clause doesn't appear to be an option. I understand the option year is just that, optional. The contract admins and COR's would like to continue to have us working. But you are correct, we can look forward to the new contract. In the mean time our BD leads are trying to see if there is a way we can move the work to one of our other IDIQ contracts.
  11. Thank you, Vern. I am still waiting for a copy of the bid protest in this case.
  12. Yes, we received 2 orders during the ordering period. The end of the IDIQ contract was Feb of 2016. Our orders still have 2 options, which the Government just informed us that they will not extend because if the GAO protest.
  13. I am not able to find the protest on the GAO website, I will see if my boss has it. My guess is that the clause also states Any order issued during the effective period of this contract and not completed within that period shall be completed by the Contractor within the time specified in the order. Which would allow us to continue work beyond the base contract ordering period, but that clause is not in our contract so we do not have that ability?
  14. I am trying to figure that out as well. My boss is out of office today, he just sent me an email about it this morning. I am also trying to find the GAO protest. I will update once I receive more information.
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