I am familiar with the process by which orders, BPAs, and calls under those BPAs are issued under GSA Schedule using FAR Part 8 procedures, and ordering procedures established by GSA.
But this following concept is new to me.
Is it allowable to obtain proposals from 3 vendors under GSA Schedule and on the basis of those 3 proposals, award a contractually binding IDIQ contract with minimum and maximum ordering quantities? I recently came accross a contract where this was done. The resulting "IDIQ contract" contains FAR Clauses 52.216-18 and 19. The IDIQ contract minimum ordering quantity is $100,000 and the maximum is $50,000,000. The Government is now in a position to issue noncompetitive task orders totalling up to $50 Million over the next 5 years under this IDIQ contract.
This is inconsistent with my understanding of how GSA Schedules operate but I have been unable to find anything that clearly prohibits or allows this technique.
Can anyone illuminate the conceptual contracting principles that either make this approach permissible or prohibited?
Thanks