Jump to content

New Contract Type


Recommended Posts

Admittedly I'm not the smartest -- and certainly not the most experienced -- contracts guy. I did that gig for a few years before I decided I liked the cost accounting and compliance side of the house better.

Anyway in yesterday's DoD Contract Award notification (available at www.defense.gov) I saw the following notification:

[Midwest Defense Contractor] was awarded a $494,999,925 ORDER DEPENDENT CONTRACT for software and system development and integration onto the CH-47, MH-47, MH-6, MH/UH/HH/VH-60, VH-3, MH-65 and all their variants, including potential foreign military sales requirements. Funding and work location will be determined with each order with an estimated completion date of April 2020. Bids were solicited via the Internet with one received. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-15-D-0016).

(CAPS added for emphasis.)

Maybe I'm behind the times, but what kind of contract is that? Funding to be determined with each order but the total contract value was extremely specific. How does that work? How would you estimate that? How would you bill start-up costs or sustaining or PM until you had an order in hand?

It's not an ID/IQ (because I think they would have said so if it were) and it's not a BOA (because it's a contract) and I don't see how it can be a requirements contract (because it's development), so what is this thing?

Inquiring minds want to know.

Thanks

H2H

Link to comment
Share on other sites

Hi policyguy,

I'm sure you're right (even though I could not find the DFARS regulation you cited). If so, wouldn't it have been a lot easier -- and perhaps less confusing -- to have reported award of an indefinite delivery contract?

Thanks for your insight.

H2H

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
×
×
  • Create New...