maxj

Our company is near completion on Year 1 of a 5 year IDIQ contract handled by the DLA. The contract is for an aircraft part which has many internal components, specialized processes, ordered parts that requiring big lead times, and employees with specialized training for assembly. The contract states delivery of 100 items a month for one year, then an estimated order of 100 items a month for the following 4 years. The government is only obligated to order the stated minimum for year one. Never having an IDIQ contract in the past, I have a question. Question: Upon completion of Year 1 does the purchasing authority give any indication whether or not there will be a near future purchase (year 2)? Or can the purchasing authority just go silent never to be heard from again, but also has the option of a resuming an order 4 years from now? From my seat it would be nice to hear a yes or no to a near future order (year 2) as business planning must be made. Having the majority of the workforce attached to only that particular job leaves a small business in an unusual situation of whether to lay off those specialized trained employees, stop ordering long lead time parts, or assume another order on the contract will occur soon. Thank you.