I am working a FFP base oprations support C-type contract with multiple CLINs. One of the CLINs was set up to include small dollar maintenance and repairs under $25k. This CLIN, (CLIN 1), is fully funded and executed with the use of technical letters of direction (TLDs) as these small requirements are identified. TLDs are signed by the KO. The second CLIN, (CLIN 2), was established to complete larger dollar projects, those over $25k. The TLDs and projects have all been within the scope of work.
CLIN 2 has a NTE value of $4m. Funding and value are increased for CLIN 2 each time a project is modified into the contract. The result is a persistent change in contract value, with and without options. The PMO indicated CLIN 2 exceeds the NTE every year and does not understand why this is an issue (surprise).
I cannot find any information to support or dispute the persistent variation in contract value. Is it acceptable for the contract value to vary this often? If so, can someone send a reference or citation?