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Federal Contracting Myths


Don Mansfield

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Hugh or anyone else. I do not understand how expired contracts can be extended without creating a new contract and without considering competition. Please explain.

Best,

Hugh and Charles,

I also do not understand the stated myth. If a contract (issued by an agency subject to FAR) has expired how can it be legally extended without being treated as new procurement? How is extending a contract post expiration authorized by contract and within the general scope of a contract? Do you have examples or case law?

Here's a discussion thread from the wifcon archives that treats the subject of late option exercise:

http://www.wifcon.com/arc/forum35.htm

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Having moved into a new position and office I gradually inherited, as successor CO, a growing constellation of on-going contracts. Much to my concern, there was no common electronic, structured contract filing system, that I could quickly and easily access. Instead, I would get notified of my status as the new CO prior to receiving, in many cases, the contract folders by Fedex days or weeks later. As as result, I could not quickly see for myself the terms and conditions of the actions I was inheriting. Upon the folders arrival, I would then dive into them and see just what the heck I had taken over.

One of these instances, was a multiple award IDIQ, for fairly complex services. I saw that they were awarded with a base year and two option years. Okay fine, except, I could not find any documentation what so ever that the previous CO (COs') had exercised the first option year! After a thorough examination I concluded it indeed was not. In fact the base year had ended 9 months prior and they were merrily awarding task/delivery orders since. Naturally, a "a very urgent and vital need for our mission." of course, what isn't?

I weighed my course of action with much consideration.

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Another myth is that the technical evaluators can't see the cost proposal. Although some agencies practice this, it's not a FAR requirement.

Years ago I was at a huge procurement conference and a speaker asked the audience by a show of hands how many people thought this was against laws or regulations. Almost everyone raised their hands. He then asked people to cite the laws or regulations. Only a couple people could quote specific internal policies but it was obvious the majority believed it was wrong but never questioned why.

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Another one is GSA Schedule contract prices are too high and you must accept them unless the order value exceeds the MOT.

Years ago I was with a group that met with GSA concerning GSA Advantage! I must confess I was taken aback by the GSA representative's very positive response when I noted that I always solicited and got better spot pricing from GSA vendors than the pricing listed in Advantage!. GSA could do itself a favor by publicizing this more.

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Guest carl r culham

Procurement personnel could do themselves the equal favor of being knowledgable of procurement policies and regulations that by my experience are easily found and easy to mark for reference in the future......

From this information website regarding ordering instructions for GSA schedules titled "Price Reductions" found here - http://www.gsa.gov/Portal/gsa/ep/contentVi...contentId=10779

"Ordering activities are advised to seek further price reductions when requirements warrant. Price reductions allow ordering activities to take advantage of the flexible and dynamic pricing in the commercial marketplace."

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