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I have an Non-Appropriated Purchasing Agreement (NPA) for Title II Services with the following Period of Performance:

Option Year 2: 20 July 2015 through 19 July 2016 

Option Year 3: 20 July 2016 through 19 July 2017

 

There will be a delivery order awarded against the NPA within the next few weeks, so we will be using the option year 2 pricing. The contractor is trying to incorporated "escalation pricing" in his proposal so when the option is exercised on the NPA (next month), the pricing for the order will "automatically" go into affect the same day. The period of performance on the order for Title II Services will be 365 days. The NAFI has already informed the contractor that the order will only incorporate Option Year 2 pricing for the entire duration of the 356 days and will not be changed unless there is a change to the current period of performance (ie. an extension to the order extending it past the 365 days). The contractor is arguing that other delivery orders were issued using this escalated pricing method with other agencies.

 

Is there a statue stating an order placed against an NPA or IDIQ will need to maintain the current base or option year pricing throughout the life of the order?

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Are you asking if the Service Contract Act applies to a delivery order for "Title II services" on a contract with a Non-Appropriated Fund Instrumentality? 

Are these professional services or simply inspection services that don't require employment of licensed engineers or registered architects? Or a combination of professional and non-professional employees? 

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How is the Service Contract Act related to the original question?  The Title II Service contractor has licensed engineers and registered architects...

Crossing into different NPA or IDIQ period of performances should not be a factor but the contractor wants to incorporate their increased rates on the delivery order when Option 3 to the NPA is exercised.

Is there any guidance that prohibits a modification to the delivery order to incorporate the new option 3 rates? Ultimately this is not in the best interest of the Government, but it would be nice to know this is governed by a statute and not an "unspoken rule."  The definition of a delivery order does not have enough information to support.   

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Ok , so I think your question is whether 1) the option 2 pricing will be in effect if you order the services during the option 2 "period of performance", even though almost all the services will be provided during the next period of performance or 2) do the prices for the services align with the actual period of performance that the work is being performed in.  

Well, the titles of the options are periods of performance not "ordering periods". But there must be someone in the NAFI that you can contact to learn what pricing applies to the period of performance. 

Edited by joel hoffman

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9 hours ago, JGarza said:

Is there a statue stating an order placed against an NPA or IDIQ will need to maintain the current base or option year pricing throughout the life of the order?

Not that I am aware of since the SCA isn't applicable. It depends upon what the contract says and how it was negotiated.  The line items could be priced for work performed during the period of performance based upon the few words that you identified. 

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17 hours ago, JGarza said:

Is there a [statute] stating an order placed against an NPA or IDIQ will need to maintain the current base or option year pricing throughout the life of the order?

No.

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We have a lot of IDIQ contracts with lots of orders.  Most contractors are going to assume that they can escalate thier pricing on Delivery Order proposals based on the option year dates of the base contract unless the contract says otherwise.   I have seen base contracts specifically state that the price on the date awarded must be used for the entire order period but they were competed that way and the contractors knew it when setting the base contract prices. To avoid confusion later, it should be spelled out in the ordering instructions in the base contract  to ensure everyone is on the same page. 

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