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ChristinaK4

Can an IDIQ contract exceed 5 years without any options?

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I am reviewing an acquisition that is a planned SIX year IDIQ. The contract will be awarded competitively and up to two vendors will be selected. The first 2 years are for a development effort. At the end of those two years there will be a down-select and a single vendor will be chosen for the remaining 4 year production. This is not a contract for advisory and assisstance services.

My issue is that I cannot find any authority to proceed with an IDIQ that exceeds 5 years and does not have any options. I am very familiar with the regulations (FAR 17.204, DFARS 217.204, AFARS 5117.204) and I do not think that the contracting officer can even rely on this part since there is no inclusion of an option.

I have tried looking in FAR part 16, but I cannot find anything regarding an IDIQ exceeding 5 years without utilizing an option or modification.

My current stance is that one of the following must be done:

1) set the contract up so that this is a 5 year effort with 1 option year or

2) break up the contract into two separate vehicles (1 for development and 1 production).

These options have not been well received by the contracting team. Is anyone aware of anything statutory or otherwise that will permit an IDIQ for more than 5 years??

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ChristinaK4,

I don't think that DFARS 217.204(e) would permit an IDIQ with a six-year ordering period. Here's what it says:

(i) Notwithstanding FAR 17.204(e), the ordering period of a task order or delivery order contract (including a contract for information technology) awarded by DoD pursuant to 10 U.S.C. 2304a—

(A) May be for any period up to 5 years;

( B ) May be subsequently extended for one or more successive periods in accordance with an option provided in the contract or a modification of the contract; and

( C ) Shall not exceed 10 years unless the head of the agency determines in writing that exceptional circumstances require a longer ordering period.

(ii) Paragraph (e)(i) of this section does not apply to the following:

(A) Contracts, including task or delivery order contracts, awarded under other statutory authority.

( B ) Advisory and assistance service task order contracts (authorized by 10 U.S.C. 2304b that are limited by statute to 5 years, with the authority to extend an additional 6 months (see FAR 16.505©).

( C ) Definite-quantity contracts.

(D) GSA schedule contracts.

(E) Multi-agency contracts awarded by agencies other than NASA, DoD, or the Coast Guard.

So, if you awarding the contract pursuant to 10 U.S.C. 2304a and none of the exceptions at DFARS 217.204(e)(ii) apply, then you would be limited to five years without options.

I have an idea--why don't you award a multiple-award IDIQ to two contractors for a base period of two years for development with an optional four-year period for production? To downselect, you would exercise the option for one of the two contracts. You would avoid having to go through a formal selection process for production.

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I am reviewing an acquisition that is a planned SIX year IDIQ. The contract will be awarded competitively and up to two vendors will be selected. The first 2 years are for a development effort. At the end of those two years there will be a down-select and a single vendor will be chosen for the remaining 4 year production. This is not a contract for advisory and assisstance services.

My issue is that I cannot find any authority to proceed with an IDIQ that exceeds 5 years and does not have any options.

These options have not been well received by the contracting team. Is anyone aware of anything statutory or otherwise that will permit an IDIQ for more than 5 years??

Christina,

You said: "IDIQ that exceeds 5 years." You have to distinguish between the ordering period and the performance period of an IDIQ contract. DFARS 217.204(e) limits the ordering period, which is stated in FAR 52.216-18(a), not the performance period, which is stated in FAR 52.216-22(d). Based on how you described the project, you only need a two to three year ordering period. DFARS 217.204(e) is not a problem.

Don't use options. Award IDIQ contracts with two to three year ordering periods and a performance period that goes out to six or seven years after award. Then issue orders for development and production accordingly.

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Vern,

Thanks for the guidance! I think 2 ordering periods solves this issue.

Don,

Appreciate your recommendation as well. The IDIQ is being utilized due to unknown quantity of production units. Looks like we can avoid the use of options thanks to Vern's explanation!

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That's correct. Two contracts, each with the same single ordering period to cover both the development and the production. You don't need separate ordering periods for development and production.

Don, do you think DFARS 217.204(e)(i) can be interpreted to allow separate ordering periods for development and production CLINS, as follows:

0001 Development, 1 October 2015 - 30 September 2017

0002 Production, 1 October 2017 - 30 September 2022

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