Search the Community
Showing results for tags 'Not to Exceed'.
Apologies in advance if this has already been answered, but what is the appropriate method for stating a contract's ceiling price on a contract with multiple optional periods of performance? Should one state the ceiling price for the entire contract, inclusive of options, or state the ceiling price for the current period of performance? I've done it different ways, but I'd like to know if there is a correct way. I usually state a ceiling price and a "total funded amount" when I fund the contract incrementally. When I do this, I include language similar to: "Notwithstanding the contract's stated ceiling price, the Government's liability to the contractor is limited to $XXX,XXXX.XX, the total amount funded on the contract. The contractor shall not perform work under this contract that will cause it to exceed this amount, except at its own risk." When I have options I state the ceiling price as: "The Ceiling Price for this period of performance is $XXX,XXX.XX." If the contract is incrementally funded, I'll add "Total Funded Amount" language similar to the one above. But I always wonder if I should be stating the Ceiling Price based on the estimated value of the entire contract, inclusive of options.