Establishing fixed fee percentage on IDIQ in Contract Pricing Including CAS & Allowable Costs Posted July 23, 2014 · Report reply Sorry, I do not get to this site a much as I would like to so I review some of the postings to "catchup" on items of interest and this one caught my attention. Chip13 stated that this was for an CPFF IDIQ task order for services where they appear to have established a Fixed Fee relationship regarding future Task Order needs. If it is IQ (FAR 16.504) does that not speak to the issue that the Government has a known amount of service support requirements and are seeking to establish a business relationship that will meet these future service support needs. CHIP13 went on to comment that "cost will be negotiated and fixed fee established before any cost is incurred". So when these future Task Orders are solicited the Government and the contractor have each had their opportunity to raise market conditions that would affect the prior fixed fee relationship. I believe that the prior relationship was prepared as "ohnoudidnt14" commented to derive a "reasonable approach and very helpful to the Government to be able to anticipate what to expect in advance of issuing a Task Order." That CHIP14 has looked down the road at the future work requirements and tried to establish a reasonable working relationship with the industrial partner for future work requirement needs should not discouraged. After all how much variance in the future work product will not be known until these future Task Orders surface. If the work is redundant it would seem to me that he has set in place a plan to quickly and efficiently place new work. Isn't he trying to be proactive? Why speak ill of this approach.