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contract type


korca

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Working currently in an open market sole source utility contract for "Water services". The consumption is unknown until the time the invoice is received and the rates are established by tariff. What type contract do you consider this acquisition?

Korca, are the rates unknown or set?

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The rates are known at the time of contract award but can change.

If you must shoehorn this kind of transaction into a FAR Part 16 type, it would be IDIQ with rates set by law or regulation. In some organizations procurement of sole source utility services are not handled in the procurement organization. Sometimes a contract is not required.

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Have you looked at FAR Part 41 and are you authorized to contract for utility services?

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It is a "utility contract", containing terms, conditions and rate schedules. The rates are set, subject to 52.241-7 or -8, which is supposed to be in the contract (along with certain other clauses). You pay for actual usage at the set tarriff rates, I presume.

I suppose you could consider it to be an indefinite quantity contract.

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It is a "utility contract", containing terms, conditions and rate schedules. The rates are set, subject to 52.241-7 or -8, which is supposed to be in the contract (along with certain other clauses). You pay for actual usage at the set tarriff rates, I presume.

I suppose you could consider it to be an indefinite quantity contract.

Thank you Mr. Hoffman

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