BradB

@joel hoffman Thanks for the clarification.

Many thanks for the all the fantastic advice! I appreciate you all sharing your thoughts. To paraphrase what I've learned so far: 1. Get rate escalation clauses into the IDIQ so it's upfront. 2. Barring that, negotiate rate escalation at the TO level, if there is a bilateral mod at some point. Corollary: a POP extensions seems a good time to make the case that the delay is increasing costs. 3. "Don't be a doormat" 4. I'm still unclear on potential C&P ramifications. Do you think there is any qualitative difference in the chances of success or

Yes--I think this is where we are headed. The way our business is structured, our senior PMs all have pretty strong personal relationships with the Govt PMs, so it definitely can be a challenge to insert myself. Unfortunately, there is just no history of the company renegotiating rates. Part of my question gets at how often/realistic it is to expect to successfully re-negotiate labor rates on an IDIQ (or even a TO under the IDIQ). I assume by this that you are thinking there are no such mysterious fiscal law complications that would make it impossible/inadvisable to adjust the labor rates

We have an A/E services IDIQ with the DoD that we initially entered in 2011 with a base year and four option years. Each of the option years included rate escalation. The IDIQ was fairly active and the ceiling was raised a couple of times. In 2016 (the last year of the IDIQ) we were awarded a major FFP TO order that is the subject of this question. Performance of this TO has been subject to delay after delay (changed client plans, re-scoping, etc). Unfortunately, throughout all these delays we've been stuck with rates from 2016 that have not escalated. We are now on Mod 14. With ea