Mickdu Posted May 4, 2011 Report Share Posted May 4, 2011 If a solicitation goes out for an IDIQ contract with a Minimum and Maximum dollar amount, can the Maximum price be adjusted once the proposals have been submitted? For example, say every proposal was just about equally above the Maximum price set in the solicitation and it caused the Program Office to realized that they miscalulated their IGCE by using incorrect data. Would the Maximum ceiling price set in the solicitation be able to be adjusted for the contract award? Link to comment Share on other sites More sharing options...
formerfed Posted May 4, 2011 Report Share Posted May 4, 2011 Mike, If the revised maximum amount isn't really out of line with the solicitation, I would do an amendment to the solicitation and get revised proposals from everyone that submitted. If the maximum was significantly out of line, you might be stuck with either awarding at the soliciation's stated amount or cancelling the solicitation entirely if you couldn't live with it. Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted May 4, 2011 Report Share Posted May 4, 2011 I don't understand your situation, probably because you are using terms that are unclear to me -- "Maximum price" and "Maximum ceiling price." By "Maximum price" and "Maximum ceiling price" do you mean "maximum quantity," as in FAR 16.504(a)(1) and (a)(4)(ii), or do you mean something else? Link to comment Share on other sites More sharing options...
Mickdu Posted May 4, 2011 Author Report Share Posted May 4, 2011 I don't understand your situation, probably because you are using terms that are unclear to me -- "Maximum price" and "Maximum ceiling price." By "Maximum price" and "Maximum ceiling price" do you mean "maximum quantity," as in FAR 16.504(a)(1) and (a)(4)(ii), or do you mean something else? I am talking about the Maximum Ceiling Price that was listed in the solicitation. It was about $8m lower than all the proposals recieved. The information used to develop the Government's IGCE turned out to be apples to oranges compared to the actual requirement. Link to comment Share on other sites More sharing options...
joel hoffman Posted May 4, 2011 Report Share Posted May 4, 2011 I am talking about the Maximum Ceiling Price that was listed in the solicitation. It was about $8m lower than all the proposals recieved. The information used to develop the Government's IGCE turned out to be apples to oranges compared to the actual requirement. Mike, are you referring to total prices in a CLIN schedule, based upon some estimated quantities, exceeding the Maximum Ceiling Price you identified somewhere? You apparently aren't referring to the maximum order limitation in 52.216-19 -- Order Limitations. "...(b ) The Contractor is not obligated to honor -- (1) Any order for a single item in excess of _____________ [insert dollar figure or quantity]; (2) Any order for a combination of items in excess of ______________ [insert dollar figure or quantity];..." Link to comment Share on other sites More sharing options...
Mickdu Posted May 4, 2011 Author Report Share Posted May 4, 2011 So are you referring to total prices in a CLIN schedule, based upon some estimated quantities, exceeding the Maximum Ceiling Price you identified somewhere? You apparently arent referring to the maximum order limitation in 52.216-19 -- Order Limitations. "...(b ) The Contractor is not obligated to honor -- (1) Any order for a single item in excess of _____________ [insert dollar figure or quantity]; (2) Any order for a combination of items in excess of ______________ [insert dollar figure or quantity];..." Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted May 4, 2011 Report Share Posted May 4, 2011 If a solicitation goes out for an IDIQ contract with a Minimum and Maximum dollar amount, can the Maximum price be adjusted once the proposals have been submitted? For example, say every proposal was just about equally above the Maximum price set in the solicitation and it caused the Program Office to realized that they miscalulated their IGCE by using incorrect data. Would the Maximum ceiling price set in the solicitation be able to be adjusted for the contract award? I have no idea what you are talking about with "Maximum dollar amount," "Maximum price," and "Maximum ceiling price." However, the answer to your question is yes, you can adjust the "Maximum price," which you are also calling the "Maximum ceiling price," after proposals have been submitted. You can do that by amending the RFP and asking for proposal modifications. (See FAR 15.001 for the definition of "proposal modification.") A competent CO should be able to do that in a week or less. Link to comment Share on other sites More sharing options...
Boof Posted May 4, 2011 Report Share Posted May 4, 2011 The clause FAR 52.216-19 is for the protection of the contractor in case the Government issues a delivery order too large or small for the contractor to handle. The clause in question is not a FAR clause but many agencies use an unofficial one they put in section B in order to comply with FAR 16.504(a)(4)(ii). It contains a minimum to bind the contract and a maximum to protect competition. It requires you to recompete the IDIQ once you hit the maximum and the number should be set rationally. I always set this maximum at the limit of feasibility because rational experience has taught me that once awarded the demand soars for its use. I want to be about 95% certain we won't hit the max. However despite my best efforts we have hit the limit a couple of times in the support of war. We had to do a J&A to increase the maximum for the emergency and then recompete the contract for the future. You can amend the solicitation to reopen the competition for a few days to see if anyone else wants to compete due to the higher possible limit or if any of the current offerors would like to reduce prices (both doubtful). Or you can award at the current level and hope they do not use the estimated amounts. IF they hit the ceiling, recompete early. I had to compete a 5 year option contract in just 2.5 years before. Link to comment Share on other sites More sharing options...
joel hoffman Posted May 5, 2011 Report Share Posted May 5, 2011 The clause in question is not a FAR clause but many agencies use an unofficial one they put in section B in order to comply with FAR 16.504(a)(4)(ii). It contains a minimum to bind the contract and a maximum to protect competition. It requires you to recompete the IDIQ once you hit the maximum and the number should be set rationally. You can amend the solicitation to reopen the competition for a few days to see if anyone else wants to compete due to the higher possible limit or if any of the current offerors would like to reduce prices (both doubtful). Or you can award at the current level and hope they do not use the estimated amounts. IF they hit the ceiling, recompete early. I had to compete a 5 year option contract in just 2.5 years before. I was curious how all the offerors would have exceeded the maximum dollar amount in their proposals for an ID/IQ base contract award. It would appear that there is some type of CLIN schedule with estimated quantities of unit priced line items. The sum of all unit prices multiplied by their estimated quantities would apparently have exceeded some specified "maximum dollar amount". I'm guessing that the "maximum dollar value was based upon a government estimate for those unit priced line items times the estimated quantities. Assuming the above scenario, it would certainly appear that you could amend the maximum contract amount and/or estimated quantities, whatever was erroneous, at this point and move on. Link to comment Share on other sites More sharing options...
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