Background for Question:
An IDIQ contract was awarded that includes a Base Year and two Option Years.
Per contract stipulation A.5 MINIMUM/MAXIMUM CONTRACT AMOUNTS sub a.:
"During the ordering period specified in the Ordering Clause (FAR 52.216.18), the Government will place orders totaling a minimum of $20,000.00."
Per contract stipulation B.2.2 52.216.18 Ordering. (OCT 1995) (Applies to IDIQ CLIN ONLY)
(a) Supplies and services under this contract shall be ordered by issuance of delivery orders or task orders by the individuals or activities designated in the Schedule. Such orders may be issued from contract award through the end of the effective period.
(b) All delivery orders or task orders are subject to the terms and conditions of this contract. In the event of conflict between a delivery order or task order and this contract, the contract shall control.
(c) If mailed, a delivery order or task order is "issued" when the Government deposits the order in the mail. Orders may be issued orally, by facsimile, or by electronic commerce methods only if authorized in the Schedule.
Per A.6 PERIOD OF PERFORMANCE
The period of performance is from date of award through 12 consecutive months. The contract may be extended by exercising options for two additional twelve month periods.
Base Year: 9/10/2012-9/9/2013
Option Year 1: 9/10/2013-9/9/2014
Option Year 2: 9/10/2014-9/9/2015
Per Solicitation/Contract/Order for Commercial Items awarded 9/10/2012, Box 19 Item No. shows 1
Box 20 Schedule of Supplies/Services shows
Period of Performance: 9/10/2012 to 9/9/2015
Item No. 1 - Line Item to Fund Task Orders: $500,000.00
The total amount of award: $500,000.00. The obligation for this award is shown in box 26.
Box 26 Total Award Amount: $0.00.
Per the modification of contract, effective date 9/14/2013, Box 13 D Other:
FAR 52.217-9, "Option to Extend the Term of the Contract"
Box 14 Description of Modification:
The purpose of the unilateral modification is to 1) Exercise Option Year 1 under this Task Order. Accordingly:
1) The Government exercises its right to exercise an option in accordance with the contract's clause FAR 52.217-9, "Option to Extend the Term of the Contract", which thereforce updates the period of performance for this Task Order.
2) As a result of the exercise of this option, the total task order value is hereby increased:
Monthly Payments - $3,630.34
The new task order period of performance has hereby been extended as follows:
Add Item 2 as follows
Item No. 2 - Exercise Option Year for IDIQ Amount 43,564.12
During the Base Year, six orders were placed and invoiced against, totaling $17,795.80 (cumulative). During Option Year One (contract modified to exercise the option effective 9/14/2013), zero orders were placed and invoiced against, totaling $0 cumulative. Option Year Two was not exercised.
While all of the orders have been paid in full, they total less than the minimum delivery orders. For IDIQ Base Year, ordering resulted in invoices totaling $17,795.80, which is $2,204.20 below the $20,000 minimum delivery order threshold. For IDIQ Option Year One, ordering resulted in invoices totaling $0, which is $20,000 below the $20,000 minimum delivery order threshold.
In order to close-out this contract per the fully executed terms, isn't the minimum delivery order applied to each CLIN (per 52.216.18)? In other words, CLIN 1 establishes the Base Year as an ordering period and CLIN 2 establishes a second ordering period for Option Year One?
It seems there is an interpretation issue with the ordering period, the Schedule, the effective period, and the Period of Performance.