Jump to content
The Wifcon Forums and Blogs

Recommended Posts

Hello Everyone! We were able to work out our previous problem with all the information that was gained from all the responses. I now have another question.

We have a contract with option years, and on the 4th year we decreased there funds with a modification. We sent them the modification, and it was never signed. We then deobligated the funds and they are now trying to bill for the full amount before the deobligation of funds was done. They are stating that since they didn't sign it we we're not entilited to deobligate the funds. I'll be upfront and say that I am on the Vendor's side here. My higher is saying that they can either bill for the lower amount or they can dispute.

I know what will happen if they dispute. My question is, was it legal for us to deobligate the funds without a sign modification from the Vendor. It was sent to them, and they have verfied they viewed it. They've also, obviously, performed the work we've asked of them.

Thanks for your time and knowledge.

Link to comment
Share on other sites

The contract is a FFP for the use of a conference center. The reduction was to bring the 4th option in line with the others. For some reason she made the last year higher then the others. Since the Vendor has signed the contract, and not the MOD deobligating, they are quite upset. We do a lot of work with them and I'd hate to see this relationship tarnish over my higher be stubborn.

Link to comment
Share on other sites

Guest Vern Edwards

You had a fixed-price contract option and your CO unilaterally deobligated funds?

The obligation of funds is tied to a contractual obligation on the part of the government. You cannot just deobligate funds without changing the obligation to reduce the government's liability. That is typically done via deductive change order or supplemental agreement or a partial termination for convenience. If the CO literally deobligated funds without reducing the government's obligation to the contractor, he or she might have a problem.

Link to comment
Share on other sites

Please clarify if and how the obligated funding was directly tied to the fourth year option FFP line item(s). I generally agree with the others. However, you didn't clearly explain the circumstances. You said "[t]he reduction was to bring the 4th option in line with the others." What "others" are you referring to? Was the fourth year line item pricing more expensive than earlier years or are you simply referring to the amount obligated on the awarded option document?

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...