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jdetton

IDIQ Task orders with options?

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Ok here's the deal, my CO specifically states you can only cut a task order for one year at a time.  However, I believe that you can build in option if the IDIQ allows it.  Can someone please confirm if they are cut task orders with options years.

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GSA FSS contracts are a form of IDIQ contract correct?  If you agree, then the following referenced  GAO protest may assist in your conversation with your CO.  

By my read of the protest GAO acknowledges that an IDIQ Task Order can have options but the options can not extend beyond the period of the parent IDIQ.

Here is a quote from the decision

Exercising an option under a task order creates new contractual responsibilities for each party. Here, for example, unless and until the options actually are exercised by the agency, SOSI is not legally obligated to provide the services contemplated by the options and, correspondingly, GSA is not legally obligated to pay for those services. However, those new contractual responsibilities do not exist in a vacuum, but instead arise under, and are governed by, the terms and conditions of the underlying FSS contract. It follows that GSA cannot legally exercise the options included in the task order without a valid underlying FSS contract.

 

Here is a link to the decision -

http://www.wifcon.com/cgen/4114813.pdf

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1 hour ago, jdetton said:

Ok here's the deal, my CO specifically states you can only cut a task order for one year at a time.  However, I believe that you can build in option if the IDIQ allows it.  Can someone please confirm if they are cut task orders with options years.

Are the task orders issued unilaterally or negotiated?  If issued, which clauses that begin, "52.217-" are in the basic contract?  I guess the point I'm trying to make is, it depends of what you mean by, "if the IDIQ allows it."  Mere silence in the basic contract may not be enough.

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For this particular IDIQ task order it will be competed between 2 vendors who were awarded the IDIQ, but in the ordering instructions it it states the ordering CO can contemplate the use of options  at the task order level but must be approved at the agency level.  I have not found any VA policy stating you cannot.

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I'm a subcontracts manager for a prime contractor.  As a Prime Contractor, we have several task orders issued from IDIQ's.  Many of the task order are multi year. For example, one of the task orders has a 3 year period base term.  Another one has a 24 month base period, with three (3) one year options.  etc...

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17 hours ago, jdetton said:

For this particular IDIQ task order it will be competed between 2 vendors who were awarded the IDIQ, but in the ordering instructions it it states the ordering CO can contemplate the use of options  at the task order level but must be approved at the agency level.  I have not found any VA policy stating you cannot.

(emphasis added).  Are you saying the ordering procedures that appear in the basic IDIQ contracts say the Government can include options at the task order level if "approved at the agency level"?  If not, where are these "ordering instructions"?

I guess I misunderstood your original post.  I thought you were asking, as between the parties (i.e., the Government as buyer and the prime as seller) whether there is some generally applicable rule that prevents options within task orders.  If I'm interpreting your latest post correctly, it seems your question is really about agency policy.

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16 hours ago, jdetton said:

you can only cut a task order for one year at a time.

Where is this limitation stated?  I know of the one year limitation relating to severable services funded with annual appropriations, but have never heard of a general limitation such as this.

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On 3/11/2020 at 10:05 AM, Retreadfed said:

Where is this limitation stated?  I know of the one year limitation relating to severable services funded with annual appropriations, but have never heard of a general limitation such as this.

I've seen more than one "old school" CO say this. I think it's a silly vestige based on how IDIQs and BPAs were traditionally "supposed" to be used (i.e., supplies, brief tasks). They can't get comfortable with the idea of separate 5-year contracts springing forth. They stopped updating their acquisition knowledge at some point in the 90s, and they're trapped there until they retire.

Same ol' story, different day...

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The term of orders or even contracts are based on fiscal limitations and business decisions.  For example with some no year money, one could issue a order with a term of several years.  But that’s dependent on details of the appropriation. Options serve purposes besides accommodating funding.  One is gives the government the ability to decide if continuing performance is beneficial and allowing the government to end performance unilaterally.  Another is permitting pricing based upon proposed/negotiated limited periods

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