jwomack
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Enjoyed the commute this morning for a change
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Agencies are required to record obligations (like contracts) only when supported by documentary evidence of a binding agreement that is in writing (31 USC 1501). Adjustments to recorded obligations, like the recordings themselves, must be supported by documentary evidence (Red Book, page 7-9). The SF-30, Amendment of Solicitation/Modification of Contract, shall be used for removal of contract funds. FAR 43.301(a)(1).
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Companies consider potential impact on their bottom dollar. Period. Riskier candidates could mean delayed revenue and possible contract default. Is the risk worth the reward? Most for profit companies, if not all, couldn’t care less how much it costs the Government to run a background check.
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No-Cost Extension (NCE) of Option contracts
jwomack replied to WC79's topic in Contract Administration
The POP is a stated contract limitation. -
No-Cost Extension (NCE) of Option contracts
jwomack replied to WC79's topic in Contract Administration
The contract must be read as a whole. Ignoring a stated POP would not be proper. A mod would be necessary. -
No-Cost Extension (NCE) of Option contracts
jwomack replied to WC79's topic in Contract Administration
The CO may be able to replace the funds. Any contract mod to extend the POP should be based on this which may mean caveating the extension with "funds are not presently available beyond xx/xx/xx". -
A slightly different perspective. In my experience, good P/PMs are the key to a contract’s success. In the absence of good P/PMs, the CO is the key. There aren’t many good P/PMs. Good = knowing how to define the government’s need. And knowing how to select, interact with, and manage the contractors.
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Not that taking possession is a sole determining factor, but the Government is taking possession. How else could it be used? Also, I would ask the GPC coordinator what labor category / wage rate this "SCA" acquisition falls under. Then I'd ask how they came to their answer.
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Preliminary and Written Notice Under 52.217-9
jwomack replied to Sunstrider's topic in Contract Administration
You cannot "exercise an option that is not in strict compliance with the terms of the contract". It's impossible and contradictory to the definition of what exercising an option means. See the Lockheed and Alliant citations provided above. -
Preliminary and Written Notice Under 52.217-9
jwomack replied to Sunstrider's topic in Contract Administration
Lockheed Martin IR Imaging Sys., Inc. v. West, 108 F.3d at 323 “option exercise must be unconditional and in exact accord with terms of contract being renewed” Alliant Techsystems, Inc. v. United States, 178 F.3d 1260, 1275 (Fed. Cir. 1999) “attempt to exercise an option outside its terms does not constitute a valid exercise of option”) Black’s Law 10th. Breach of contract. “Violation of a contractual obligation by failing to perform one’s own promise, by repudiating it, or by interfering with another party’s performance” Black’s Law 10th. Material breach. “A breach of contract that is significant enough to permit the aggrieved party to elect to treat the breach as total (rather than partial), thus excusing that party from further performance and affording it the right to sue for damages” -
Preliminary and Written Notice Under 52.217-9
jwomack replied to Sunstrider's topic in Contract Administration
What you're describing is not a breach of contract nor material breach. Both of those terms, as defined by Black's Law, imply there was a violation of a contractual obligation. "Exercising an option in a way that is not in strict compliance with the terms of the contract" is not, in fact, exercising an option; it's a non-binding offer to change the terms of the contract. That offer can be ignored/rejected, accepted, or counter-offered. -
Preliminary and Written Notice Under 52.217-9
jwomack replied to Sunstrider's topic in Contract Administration
Failing to exercise an option is not a material breach of the contract.