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IAMBATMAN

Cumulative Modification Dollar amount

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Hypothetical situation . Let's say you have a competitively awarded Multiple Award IDIQ contract for Security Services, you compete and award a Task Order (Base +4 Options) for $100k.  Throughout the 5 year Period of performance 3 separate J&A's for ceiling increases of $75K were approved, these are in scope modifications and there is enough capacity on the IDIQ . So you have an Initial Task Order value of $100k and three modifications that have a value of $225K . 

I would like to know if there is guidance on a maximum cumulative modification dollar amount, for example, something saying " all modifications shall not exceed the total initial contract value by 75%".  

 

 

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No.

Do you think there should be?

Are you talking about J&As or JEFOs?

Are you posting the JEFOs on FedBizOpps and your agency website so that all contract holders can see them?

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16 hours ago, IAMBATMAN said:

I would like to know if there is guidance on a maximum cumulative modification dollar amount, for example, something saying " all modifications shall not exceed the total initial contract value by 75%".  

 

 

Guidance? Yes, in the form of commentary and case law regarding 'scope': (1) scope of the competition; and (2) scope of the contract.

Since you have J&As, the scope issues related to modification are satisfied. The J&As approve new work; the dollar limitations that apply to new procurements may apply...the modification of an existing contract--citing a J&A--is arguably for administrative convenience.

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19 hours ago, IAMBATMAN said:

these are in scope modifications

If they are in scope modifications, why are you preparing J&As?

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17 hours ago, ji20874 said:

No.

Do you think there should be?

Are you talking about J&As or JEFOs?

Are you posting the JEFOs on FedBizOpps and your agency website so that all contract holders can see them?

Yes I think there should, mods sometimes add up to be 5x the original amount of the inital contract.

J&A as in Justification and Approvals I use it loosely to cover the authorities under Subpart 6.3, the J&A's were Justifications for Other Than Full and Open Competition. Is that what JOFO stand for?

J&A's were under the SAT so posting was required, just a copy for the file. 

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27 minutes ago, Retreadfed said:

If they are in scope modifications, why are you preparing J&As?

Competition may be required for modifications of existing contracts if there is a cardinal change to the contract (such as an increase to the total estimated amount of the award, a change to the Statement of Work (SOW), or an extension of the period of performance).

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A cardinal change is an out of scope change.  You said the changes were in scope.  In scope changes do not require a J&A.  I don't see any of the types of changes you listed as being out of scope changes per se.  If you read the appropriate Changes clauses, all of these changes are permitted types of changes.

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Batman,

There is not, and simply cannot be, a rule which limits cumulative modifications to a percentage of the original order (or contract).  

It might be that your JEFO approving authorities are abusing their privileges.  If the JEFOs were above the SAT, they would be published, and that would be a check on abuse.  But for administrative convenience, we don’t post under the SAT.

You seem to be talking about orders, not contracts.  If so, it is JEFO, not J&A.  J&As are not used for orders under multiple-award IDIQ contracts.  Orders are not subject to FAR Part 6, and FAR subpart 6.3 is wholly inapplicable. An order not providing for fair opportunity among the multiple-award IDIQ contract holders is supported by a JEFO.  Instead of FAR Subpart 6.3, see FAR 16.505(b)(2).

If you think an order with one multiple-award IDIQ contractor is being unfairly modified in violation of fair opportunity principles, you may raise your voice to the agency’s task order ombudsman.  That might allow some sunshine into the matter.  

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ji, Batman seems to be worried about cardinal changes.  If an agency wishes to make a cardinal change to an order under an indefinite quantity contract, even one that is a multiple award contract, the agency would need a J&A for that cardinal change.  However, when you have a multiple award IDIQ contract, for the life of me I don't know why someone would knowingly issue a cardinal change to an order that was competed using the fair op process.

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As I read it, he spoke of changes to an order (JEFO), not to the contract (J&A).

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FAR 16.505(b)(1)(ii) states that the competition requirements in Part 6 and the policies in Subpart 15.3 do not apply to the ordering process. Multiple-award task orders require 'fair opportunity' (i.e., fair notice of the intent to make a purchase) or compliance with statutory exceptions to the fair opportunity process including a written justification for an exception to fair opportunity (JEFO). 

You assert that the modifications are within scope so FAR Part 43, Contract Modifications may not apply. (FAR 43.000(a))

Bottom-line: If you are talking about 'within scope' changes you shouldn't need a J&A, JEFO, Single Source Justification or any other justification & approval to make 'within scope' changes.

*I am not sure that a JEFO is automatically the required document for cardinal changes to task orders ... for example, what about a task order modification that is out-of-scope regarding the IDIQ and the competition? 

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15 hours ago, ji20874 said:

As I read it, he spoke of changes to an order (JEFO), not to the contract (J&A).

Orders can be subject to changes under the Changes clause in the contract.  If a change order is out of scope (cardinal change), a J&A would be required for that cardinal change to the order, which may also be a cardinal change to the contract.  In this regard, if an order is outside the scope of the contract (a cardinal change) it is subject to being protested.  On the other hand, if a change is within the scope of the order and contract, I don't see a need for any justification for that change.

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