maxj Posted November 6, 2019 Report Share Posted November 6, 2019 Our company is near completion on Year 1 of a 5 year IDIQ contract handled by the DLA. The contract is for an aircraft part which has many internal components, specialized processes, ordered parts that requiring big lead times, and employees with specialized training for assembly. The contract states delivery of 100 items a month for one year, then an estimated order of 100 items a month for the following 4 years. The government is only obligated to order the stated minimum for year one. Never having an IDIQ contract in the past, I have a question. Question: Upon completion of Year 1 does the purchasing authority give any indication whether or not there will be a near future purchase (year 2)? Or can the purchasing authority just go silent never to be heard from again, but also has the option of a resuming an order 4 years from now? From my seat it would be nice to hear a yes or no to a near future order (year 2) as business planning must be made. Having the majority of the workforce attached to only that particular job leaves a small business in an unusual situation of whether to lay off those specialized trained employees, stop ordering long lead time parts, or assume another order on the contract will occur soon. Thank you. Link to comment Share on other sites More sharing options...
joel hoffman Posted November 7, 2019 Report Share Posted November 7, 2019 Don’t know how the contract is written. However, Before delving into technicalities, is it possible to have interaction - e.g., oral communications - with the contracting officer for your contract and explain your concerns and ask your questions to him/her? After all, if this is a five year contract, it would seem reasonable and advantageous to develop a close working relationship with your government partner. Link to comment Share on other sites More sharing options...
Neil Roberts Posted November 20, 2019 Report Share Posted November 20, 2019 maxj, are years 2-5 stated to be options in the contract? If so, the Government would have to exercise the options in a timely way per the option contract language and that is when you will know. If there are no options, and for example, the contract states something to the effect that year 1 is considered consideration for years 2-5, your company may be contractually obligated to fulfill orders during years 2-5 whenever ordered. As joel hoffman indicated, answers to your concerns require knowledge of the pertinent contract language. With so much at stake for a small business, you may want to engage the services of an attorney specializing in government contracts. Link to comment Share on other sites More sharing options...
joel hoffman Posted November 20, 2019 Report Share Posted November 20, 2019 - max, Is year one a base period with years 2-5 individual options or is this simply a five year contract with only guaranteed minimum for year one ? I noticed that you last visited the site on November 8. Did you resolve your concerns? Link to comment Share on other sites More sharing options...
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