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CPFF Contract with Options


SSKO

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SORRY TITLE SHOULD SAY "OPTIONAL TASKS"

Due to the Iraq drawdown, the impending Afghanistan drawdown, depletion in funds, and mission changes we are having difficulty projecting the contractual requirement past the base year. Even for the base year, customers are sending me PWSs/procurement packages (for services) with a large percentage of "optional" tasks. For example, the PWS may include funded or known tasks for $4M and optional tasks for $7M. The outyear requirements are completely uncertain.

I have found information regarding a "Phased Tasking" model contract

  • Tasks are broken down into 3 categories
    • Initial Tasks
    • Optional Tasks
    • Future Tasks

    [*]The contract is signed for a

    • Committed amount
      • Total of Initial Tasks (ordered implicitly at contract start)

      [*]Maximum Contract value which is

      • Total of initial tasks
      • Total of optional tasks
        Total of future tasks

      [*]I cannot find any guidance that limits the number of "optional" tasks however, I want to provide the greatest flexibilty to accomodate the unknowns but not have this contract turn into an open-ended "wish list" that would impede future competition. I would appreciate any feedback or suggestions.

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SSKO,

You wrote:

I'm selecting a CPFF contract fover a IDIQ/task order contract because of the uncertainties in performance, funding and scope are way beyond determination of quantities.

That doesn't make sense. It's like saying I've chosen to buy a red car instead of a foreign car. CPFF is a pricing arrangement. IDIQ is a delivery arrangement. Two different attributes of a contract. Read this:

http://www.wifcon.com/discussion/index.php?app=blog&module=display&section=blog&blogid=6&showentry=1897

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We did one that involved BRAC that had a single optional CLIN per year for BRAC installs/decommissions (of IT installs into facilities). We used a Govt provided estimate for the CLIN price and then executed using a series of FFP SubCLINs when we had firm dates/places. Since it was BRAC related, we didn't know at time of contract award when a post would actually close and that was the trigger for decommissioning the facility on the post and setting up a replacement facility in some nearby commercial location. (Distance learning stuff)

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SSKO, I do not think you will find anything that limits the number of exercisable optional tasks. Remember according to FAR 17.207(f) the option must have been evaluated as part of the initial competition and be exercisable at an amount specified in or reasonably determinable from the terms of the basic contract. Moreover, we the Government have a responsibility to contract in good faith. Therefore, I would not have 1400 exercisable task options when you have no intention of exercising them. Be reasonable in your assessment of the work, and have options that have a good possibility of being exercised, and that meets the Government need.

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