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Task Orders Under a Sole Source IDIQ for Repair of Government Property


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I am currently working on a Sole Source IDIQ for the repair of commercial GFP.  In the past, when my office has issued single contracts for this exact same requirement to the same sole source contractor, it was solicited and awarded as FFP, with only the testing/evaluation being the FFP portion.   The cost to actually perform the repairs is unknown at the time of contract/order issuance.  As a result, the award is issued with a ceiling price, which includes the FFP test and evaluation cost as well as a not to exceed amount for the actual repairs.  This results in 99% of the contracts/orders requiring a second modification to deobligate excess funds.  This is in accordance with FAR 13.302-2 - Unpriced Purchase Orders.

As this is a recurring need for the Government, the goal is to put a FFP IDIQ in place for this requirement.  My goal is to come up with a task order issuance process that eliminates, or at least reduces, the need to issue a mod to deobligate the excess funds.  If this is even possible...

Any one have any thoughts on "oral orders", as referenced in FAR 16.504(a)(4)(vi), which states, "Include authorization for placing oral orders, if appropriate, provided that the Government has established procedures for obligating funds and that oral orders are confirmed in writing."

I don't see much else, or anywhere for that matter, that references oral orders or outlines any characteristics.  As long as the below procedures are established in the master contract, would the following be permitted?

Step 1:  Issue an Oral Task Order to the Contractor.  This will comprise of the Government notifying the Contractor of the number of assets for repair and shipping them to the Contractor's facility where they will perform the test and evaluation.  A draft task order can be provided to the Contractor, if necessary, which reflects 1 CLIN for test/evaluation and separate CLIN for repair costs.

Step 2: The Contractor will then provide the results of the testing and evaluation, along with price for the repairs, if any.

Step 3 (Confirm Order in Writing):  Update the draft task order by adding the repair costs and issue the official task order, obligating the funding.

If I'm crazy, and the only way to do this is by issuing TOs IAW FAR 13.302-2 - Unpriced Purchase Orders, as described above, then I suppose I will accept that.  But I feel there has to be a better way to do this. 

Any thoughts or input would be much appreciated. 

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The DFARS PGI has a procedure for this:

Quote

 

PGI 217.7103-5  Repair costs not readily ascertainable.

      If the nature of any repairs is such that their extent and probable cost cannot be ascertained readily, the solicitation should—

      (1)  Solicit offers for determining the nature and extent of the repairs;

      (2)  Provide that upon determination by the contracting officer of what work is necessary, the contractor, if requested by the contracting officer, shall negotiate prices for performance of the repairs; and

      (3)  Provide that prices for the repairs, if ordered, will be set forth in a modification of the job order.

 

It's covered under vessel repair, but there's no reason you couldn't use it for other types of repair.

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Some agencies that do this a lot use a combination of what has already been discussed.  They send an email authorizing work subject to a ceiling using bulk funding (I’m guessing bulk funding for the volume of actions).  Once pricing is finalized, they do the order.

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Thanks for the input and ideas, everyone!  Based on the responses, I take that there is in fact no tried and true, or commonly accepted procedure for such requirements.  Everything above has crossed my mind in some manner, which ultimately led me to my above proposed process. 

With that, I'd like to pose my original question, which is...

Does any one have any thoughts on "oral orders", as referenced in FAR 16.504(a)(4)(vi), which states, "Include authorization for placing oral orders, if appropriate, provided that the Government has established procedures for obligating funds and that oral orders are confirmed in writing."

I don't see much else, or anywhere for that matter, that references oral orders or outlines any characteristics.  As long as the below procedures are established in the master contract, would the following be permitted?

Step 1:  Issue an Oral Task Order (or other name) to the Contractor.  This will comprise of the Government notifying the Contractor of the number of assets for repair and shipping them to the Contractor's facility where they will perform the test and evaluation.  A draft task order can be provided to the Contractor, if necessary, which reflects 1 CLIN for test/evaluation and separate CLIN for repair costs.

Step 2: The Contractor will then provide the results of the testing and evaluation, along with price for the repairs, if any.

Step 3 (Confirm Order in Writing):  Update the draft task order by adding the repair costs and issue the official task order, obligating the funding.

I tried poking holes in this process but could not find anything that would prohibit it.  If this is not what oral orders are, I can change the name of the first step to anything.  Really just want to be sure there would be nothing stopping us from from sending this GFP to the contractor without a TO in place.  I would ensure the process is included in the contracts terms and conditions.

 

Thanks again for your input!

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@buonomma 

 

28 minutes ago, buonomma said:

Does any one have any thoughts on "oral orders"...

 

On 2/12/2021 at 11:11 AM, buonomma said:

I am currently working on a Sole Source IDIQ for the repair of commercial GFP. 

Question: Does the work entail the performance of repair tasks that are standardized by nomenclature and specification? (Presumably not, since you cannot price tasks in advance.)

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27 minutes ago, buonomma said:

Does any one have any thoughts on "oral orders

 

Saw a mention of DFARS in this thread.   Did not read intently to determine if you are with a DoD entity.  While it does not add much and may not be specific to the type of services you have in mind I did find a reference to "oral orders" at DFARs 247.271-3.   The reason I searched is many times departments/agencies as noted here provide for further details on something like "oral orders" in either their specific FAR supplement or in agency policy documents elsewhere.   Just wanted to encourage you to look beyond the FAR as you look at the particular solution.  

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37 minutes ago, Vern Edwards said:

@buonomma 

Question: Does the work entail the performance of repair tasks that are standardized by nomenclature and specification? (Presumably not, since you cannot price tasks in advance.)

It is not.  This is a sole source requirement for that reason.  These items are being evaluated and repaired by the manufacturer

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2 hours ago, buonomma said:

Step 1:  Issue an Oral Task Order (or other name) to the Contractor.  This will comprise of the Government notifying the Contractor of the number of assets for repair and shipping them to the Contractor's facility where they will perform the test and evaluation.  A draft task order can be provided to the Contractor, if necessary, which reflects 1 CLIN for test/evaluation and separate CLIN for repair costs.

I think your agency has to record an obligation for the test and evaluation at this point. In DoD, I think the rule is the obligation needs to be recorded within 10 days of its creation. So how would you communicate the obligation to the accounting folks in the agency after issuing the oral order?

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Then the question is whether you can orally communicate what you want done with sufficient clarity and specificity to avoid later misunderstandings and conflicts. if you think you can, then oral ordering should not be much of a problem. Don Mansfield has reminded you to record the obligation within 10 days of the order. Also, remember that you must follow-up in writing.

Frankly, I don't see why you can't send an order by email, or even text. That way you can copy the accounting office. Why bother with the oral part? That practice was developed before email and texting. 

Who talks anymore?

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1 hour ago, Don Mansfield said:

I think your agency has to record an obligation for the test and evaluation at this point. In DoD, I think the rule is the obligation needs to be recorded within 10 days of its creation. So how would you communicate the obligation to the accounting folks in the agency after issuing the oral order?

Noting this and @Vern Edwards subsequent post I had this thought.

The electronic systems that complicate PR, funds cert, etc. through to payment.   How about giving those oral order folks not only authorization to order but the okay to pay with a GPC as well?

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