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I plan on creating award term RFP with base of three years and three 2 year award term periods and one option period to be used if I need to recompete. I will evaluate performance and if excellent award the first 2 year award period and so on and so on. I don't want to use options like traditional award term contracts. thoughts? me escape is the one year option period.

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Guest Vern Edwards

Thoughts? :mellow: You haven't provided nearly enough information to prompt useful thoughts. However...

A lot of people have thought and written about award term. See, for example:

  • Award Term Contracting: A New Approach for Incentivizing Performance (NCMA 2001).
  • "Award Term: The Newest Incentive," Contract Management (February 2001)
  • "The Award Term Incentive—What It Is And How It Works," http://www.wifcon.com/anal/analaterm.htm
  • "The Award Term Incentive--A Status Report," http://www.wifcon.com/anal/analaterm2.htm
  • "Award Term Contracting: A New Idea," The Nash & Cibinic Report (August 1999)
  • "Award Term Contract Extensions: New Procurements?" The Nash & Cibinic Report (September 2016)
  • "Can Contractors Dispute Award-Fee and Award-Term Decisions: Who Ever Heard of Burnside-Ott," The Nash & Cibinic Report (March 2006)
  • "NASA Launches Idea To Award High-Performing Contractors," https://www.law360.com/articles/870535/nasa-launches-idea-to-award-high-performing-contractors
  • "Award Term Contracts: Good for Business?" Contract Management (September 2005)
  • Air Force Guide: Award Term Incentive Options (January 2003)
  • CI2 , Inc., ASBCA 56257, 11-2 BCA ¶ 34823
  • Coast Professional, Inc. et al. v. United States, 120 Fed. Cl. 727 (April 22, 2015)
  • Coast Professional, Inc. et al. v. United States, 828 F.3d 1349 (Fed.Cir.July 2016)
  • There are about 35 GAO decisions that briefly describe various award term incentive arrangements.

That list scratches the surface.

There is no general agreement on how best to set up an award term incentive, and I am not aware of any reliable evidence that they "work." Do some research. Google "award term incentive" and "award term contract."

Look at agency FAR supplements. Some of them have (or did have) coverage.

See a proposed NASA regulation on award term at 81 Fed. Reg. 89038 (December 9, 2016)

It's not an incentive that should be used by the clueless.

 

 

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I've read a lot and was at NAvsea when it was used mostly for the seaport contracts.  Almost always  the contract was base with four options and five one year award terms. I don't want to use the options and just use award term periods.  From what I've read there is no requirement to use options. The contract I'm planning is for enrollment services. Thanks for your comments 

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Guest Vern Edwards
1 hour ago, ohio said:

I don't want to use the options and just use award term periods.  From what I've read there is no requirement to use options.

You'll get arguments from some people about award terms and options. The issue is whether an award term should be something to which the contractor becomes entitled on the basis of the performance evaluation or whether it should be just the addition of another government extension option. There are reasonable arguments on both sides.

If you look around you'll find examples of clauses for both approaches.

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I'd be curious to know if anyone has ever seen an Award Term vehicle managed the way it was intended.  From what I've seen over the years, it is a high-minded concept that is effectively mooted during implementation.  Metrics are either not created properly or not used properly post-award, and you end up with another de facto entitlement program for the winning vendor with the award terms extended over and over and over with little indication "why".

(Maybe I should ask "if anyone outside the Air Force has ever seen an Award Term vehicle managed the way it was intended."...USAF has always had a predilection for  complexity).

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