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I have an Non-Appropriated Purchasing Agreement (NPA) for Title II Services with the following Period of Performance: Option Year 2: 20 July 2015 through 19 July 2016 Option Year 3: 20 July 2016 through 19 July 2017 There will be a delivery order awarded against the NPA within the next few weeks, so we will be using the option year 2 pricing. The contractor is trying to incorporated "escalation pricing" in his proposal so when the option is exercised on the NPA (next month), the pricing for the order will "automatically" go into affect the same day. The period of performance on the order for Title II Services will be 365 days. The NAFI has already informed the contractor that the order will only incorporate Option Year 2 pricing for the entire duration of the 356 days and will not be changed unless there is a change to the current period of performance (ie. an extension to the order extending it past the 365 days). The contractor is arguing that other delivery orders were issued using this escalated pricing method with other agencies. Is there a statue stating an order placed against an NPA or IDIQ will need to maintain the current base or option year pricing throughout the life of the order?
