Innovative Technologies and Contract Award

[Bailers]

I have kind of a unique situation, and I'm wondering if anyone can see a problem with the approach that I'm planning on taking. I have a request for a contract, likely an IDIQ, for a service. The problem is, the location that will provide this service has not yet been built. So my plan is to write an IDIQ contract, with the stipulation that the Government can terminate if certain conditions are not met, ie permiting, potentially first product testing/proof of acceptability, etc. If the plant that will provide the service is built and all goes well, the rest of the contract should be fairly straight forward. As I said in my title, this is an innovative technology and service, something that isn't currently provided by anyone in the marketplace. But the proof of concept has been demonstrated on a small scale to the satisfaction of the program office that requested this.

Can I continue forward with an award, or am I asking for trouble because the awardee has to construct the facility first? Thanks in advance for your help.

[Guest Vern Edwards]

I have kind of a unique situation, and I'm wondering if anyone can see a problem with the approach that I'm planning on taking. I have a request for a contract, likely an IDIQ, for a service. The problem is, the location that will provide this service has not yet been built. So my plan is to write an IDIQ contract, with the stipulation that the Government can terminate if certain conditions are not met, ie permiting, potentially first product testing/proof of acceptability, etc. If the plant that will provide the service is built and all goes well, the rest of the contract should be fairly straight forward. As I said in my title, this is an innovative technology and service, something that isn't currently provided by anyone in the marketplace. But the proof of concept has been demonstrated on a small scale to the satisfaction of the program office that requested this.

Can I continue forward with an award, or am I asking for trouble because the awardee has to construct the facility first? Thanks in advance for your help.

If you're awarding an IDIQ contract, the government is not liable for any costs prior to issuance of an order. Simply set a contract effective date that coincides with the availability of the facility. You don't need to stipulate that the government can terminate, because the contract must include a termination for convenience clause, which permits you to do that. Just write a special clause that says that if the government terminates the contract for convenience prior to the effective date of the contract the contractor agrees to a no-cost termination. Even if you terminate after that date, you might not have to pay for the minimum quantity if you terminate before the contract expires.

I don't see a problem that needs a unique solution.