frank.watson

Good Morning.

Quick question. Can anyone tell me the difference between these two clauses? 1.2 talks about extending services within the limits and at the rates specified in the contract then in 1.3 talks about the ability to extend the contract as long as the duration does not exceed 60 months.

The reason I ask is I have a contract thats expiring (2 year period of performance) and we are exploring being able to extend it another year. Is my interpretation correct that they can only extend 6 months without having to renegotiate the rate$ - and separately can extend as long as the overall contract does not exceed 60 Months?

[

52.217-8 -- Option to Extend Services.

As prescribed in 17.208(f), insert a clause substantially the same as the following:

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 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. The Contracting Officer may exercise the option by written notice to the Contractor within ______ [insert the period of time within which the Contracting Officer may exercise the option].

(End of Clause)

52.217-9 -- Option to Extend the Term of the Contract.

As prescribed in 17.208(g), insert a clause substantially the same as the following:

Option to Extend the Term of the Contract (Mar 2000)

(a) The Government may extend the term of this contract by written notice to the Contractor within _____ [insert the period of time within which the Contracting Officer may exercise the option]; provided that the Government gives the Contractor a preliminary written notice of its intent to extend at least ___ days [60 days unless a different number of days is inserted] before the contract expires. The preliminary notice does not commit the Government to an extension.

(b) If the Government exercises this option, the extended contract shall be considered to include this option clause.

(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed ___________ (months)(years).

extension.tiff

On September 1, 2016 at 3:49 PM, ji20874 said:

I wouldn't let the appearance of the word "services" in the NAICS code title become the dispositive answer that the acquisition in question is for services.

Thanks. Good point

Sorry to revive an old thread. Something caught my eye on this discussion mentioned by "Whynot". In the example of cloud services (paid monthly for example Amazon Computing) would the NAICs have to be specific to a IT VAR such as 541519 or could 541512 work? Or would 541512 be considered just for services (Where contractors perform work) 

Question for any experts out there in the SEWP Contract arena. If a small business acquires a company that IS a Prime Contractor on the SEWP Contract Full and Open category can the small business be grandfathered into the appropriate SEWP Small Business Category?

In this example the company acquiring the SEWP Full and Open Prime company is a SDVO/Hubzone certified company. Can they be added to the Hubzone Group? Or do they remain Full and Open category regardless of surviving Business socioeconomic status?

Frank, the FAR and SBA regulations do not impose the "50% rule" on subcontractors. You awarded a subcontract to an 8(a). Is there any question about the SDB status of that subcontractor including its size? If so, have you taken appropriate action described in FAR 19.703? If not, what is your concern? I'm trying to understand what the problem is as you see it.

Say I am a Large Company. I win a 100 Mil contract of some sort and in the requirement is lets say a 30% 8a small business subcontracting requirement. So 30% of 100Mil must be subcontracted to an 8a small business to be compliant. If the 8a company then turns around and subs their positions to another large company and in essence just pass the revenue through. Trying to find language around that issue

frank, I don't think the substance of the agreement or the intentions really affect whether or not it's reported as a subcontract award.

H2H

I was more finding the line between a Temp to Perm vs straight subcontracting to a large staffing firm. For example I am a Prime Contractor with a 20% small business 8a requirement- I sub 20% to an 8a company who then subcontracts it to another large non-8a business. Maybe its a grey area?

frank,

It seems to me that your subcontractor has awarded a lower-tier subcontract to the staffing agency it is using for temp-to-perm employees. I would expect your subcontractor to count that award in its socioeconomic reporting. I would expect that you would count your award to your subcontractor in your socioeconomic reporting.

As for your question about delineation, there are rules against "excessive pass-through costs" which state that the delineation occurs at 70%. If 70% or more of the total cost of the awarded contract is being performed by subcontractors then additional work needs to be performed to justify why there is a middle-man. See FAR 52.215-22 and 52.215-23.

Hope this helps.

I am guessing though that if there are agreements or intentions to not ever convert them from Temp to Perm then its strictly a 2nd tier subcontractor relationship.

Quick question:

What is the guidance on subcontractors using staffing firms for temp to perm. They are considered "contract employees" during that time- how does this effect my claiming the small business goal/status of the subcontractor using the staffing agency. I assume small businesses can use temp to perm but what is the delineation between the small business operating as a small business vs being the small business just passing through revenue to a larger staffing firm.

Below is a scenario- just soliciting opinions here. Question:

You have a prime IDIQ contract to Company XYZ. (T&M). (Established LCATs and Pricing)

They have a Task Order doing some services scope of work

They have a need to onboard small businesses to meet their subcontracting goal over the next 24 months.

You want to add a small business. Their rates for all LCATs are BELOW your contract pricing.

Can you claim their prices are fair and reasonable since they are below the competed contract LCAT price levels?

Question on this topic:

Reviewing the Non-Manufacturer Waiver list it seems like it would be tough to keep up to date. The Government standardizes on specific IT Platforms/Models for specific functions such as Firewalls or other COTS products that are included in the architecture and then could/would use small business acquisition vehicles to procure it.

is there some sort of master statement that says if the Government is buying "OEM Name-brand product" in the procurement that the requirement for any kind of manufacture waiver is not needed? For example- if the Government standardizes on Cisco Firewall XYZ (Specific model platform example) and wanted to procure it small business set aside would a waiver really be needed? Because Cisco makes Cisco Firewall XYZ and the Government is not shopping for a new brand.

Just curious for any thoughts on the topic.

Thanks Don- I won't quote you on that but it definitely gave me a new perspective on looking at it that I needed.

Frank

Morning everyone-