AE IDIQ primarily for Observation Wells

[Scott1580]

I just received a task order proposal for an observation well and the AE firm listed a lot of assumptions. The AE firm also mentioned some of the pricing is estimated based on not knowing the material (rock, sand, ect.) or site conditions. I checked the IDIQ for 52.236-2 "differing site conditions" and the clause was not included. The FAR matrix does not list 52.236-2 as applicable to FP Services or A&E and that is probably why the clause was not included.

If site conditions are different then the Government and AE assume after starting to drill the well what clause can I use to modify the Task Order. It doesn't appear to be the changes clause 52.243-1 Alt III, because these aren't really Government directed changes or delays. The IDIQ does have 252.243-7002 requests for equitable adjustment, but isn't the road I would prefer to go down.

Any suggestions? I could probably include 52.236-2 in the task order solicitation.

[joel hoffman]

Discuss the assumptions and reservations thoroughly during the TO negotiations. Document the understandings and agreements reached. I suggest that you include appropriate wording in the contract scope and/ or as an attachment in (section J?), that would allow an adjustment if necessary. If the DSC clause would be appropriate to handle the situation, I suppose that you could add it. But definitely discuss, come to a mutual understanding and agreement on how and when an adjustment would be made for unknown or unexpected conditions, which could increase OR decrease the price paid. Sometimes, unit priced CLINs make sense to handle possible complications, like rock or groundwater.

[Scott1580]

Thank you. The scope talks about no changes can be made without the KO, but not really what happens if the contractor encounters different site conditions. Some boring logs were also provided as attachments.

[joel hoffman]

Thank you. The scope talks about no changes can be made without the KO, but not really what happens if the contractor encounters different site conditions. Some boring logs were also provided as attachments.

I don't know how deep the well is or if it is to be pumped. However, if you make the firm responsible for successfully drilling, developing and pumping a well, a lump sum price arrangement is not practical. The firm will either include contingencies or exceptions in its pricing. If the depth depends upon actual conditions or if the well screen size and length of screen depend upon actual conditions, then you should consider restructuring the pricing to LS for mob/demob and LS for any other fixed element. Then use unit pricing for the variable aspects and have UP line items for rock or boulder excavation per foot in lieu of soft drilling. The A/E firm should be able to help structure the CLIN schedule. Well development costs maY vary based upon conditions (fixed pricing plus variable time spent developing)