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Language in Contract Changing Type of Contract


Weno2

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The government has a procurement for services where the type of K is T&M, and the Period of Performance (POP) is for five years. The KO wants to insert language in the solicitation, advising offerors that after a certain period of performance under the K (e.g. two years), the government may ask the contractor to submit a FFP proposal for the remaining tasks and the POP under the K.

The reason for the possible change is b/c the contractor will be performing the same effort three times during the performance period of the K, so the contractor's risk will diminish after the second year.

I know the government can renegotiate the type of K during performance of the K. Since the govenment has the right to do this, should the govenrment put this language in the solicitation?

Thanks

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Guest Vern Edwards

Yes. It is always a good idea to state your intentions.

If I understand you rightly, you contemplate that at some point in time you would want to price all future orders on an FFP basis. Did you say that you might also want to reprice options then in effect?

You might make the change in future pricing a contract option by putting a clause in the contract. That way, the contractor would have to agree to the change in pricing. Otherwise, while the government may have the right to try to renegotiate the pricing arrangement, the contractor would not have to go along. You could include a complete set of clauses for a FFP contract, or you could say that the clauses that will apply will be the ones in effect in the FAR and the agency supplement on the date on which the option is exercised. Your clause must be well thought out, especially if you will want to reprice ongoing work. (That might not be worth the trouble. You might do better to limit the conversion to future orders.)

Nice idea. Don't screw it up.

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Yes. It is always a good idea to state your intentions.

If I understand you rightly, you contemplate that at some point in time you would want to price all future orders on an FFP basis. Did you say that you might also want to reprice options then in effect?

You might make the change in future pricing a contract option by putting a clause in the contract. That way, the contractor would have to agree to the change in pricing. Otherwise, while the government may have the right to try to renegotiate the pricing arrangement, the contractor would not have to go along. You could include a complete set of clauses for a FFP contract, or you could say that the clauses that will apply will be the ones in effect in the FAR and the agency supplement on the date on which the option is exercised. Your clause must be well thought out, especially if you will want to reprice ongoing work. (That might not be worth the trouble. You might do better to limit the conversion to future orders.)

Nice idea. Don't screw it up.

The procurement is a competitive FSS task order for a study (MOBIS) (MY fault, b/c I should've been clearer when I wrote the post). The TO would be a five year base period (fully funded) w/a two year option. The government will perfom the same study apprximately three times, and the option will allow the contractor to perform the study two more times. After the government reaches a particular SOW task (or performance period), the government wants to change the type of K from T&M to FFP. This would be for the remainder of the base period, and the two year option period. The government would "reprice" the remainder of the base period of the TO, and the two year option period.

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Weno2,

1. Will the contract be an indefinite delivery contract?

2. Will the contract contain options?

3. Will the three tasks be seperately priced?

Don,

1. It will be a task order against a GSA FSS MOBIS schedule.

2. The base period of the task order will be for five years, and one two-year option.

3. The CLINs are for labor hours and rates for the base period and the option period. The CLINs are not by each task cited in the statement of work.

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Don,

1. It will be a task order against a GSA FSS MOBIS schedule.

2. The base period of the task order will be for five years, and one two-year option.

3. The CLINs are for labor hours and rates for the base period and the option period. The CLINs are not by each task cited in the statement of work.

So the plan is part of your D&F to support having a T&M order with a POP over 3 years? Totally agree with Vern - great plan that will require careful execution.

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