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Increasing total estimated price on cost plus fixed fee

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Situation:

CPFF IDIQ contract on its third Option Year which is the last option on the contract. Option Year III was exercised on 09 June 2010 and expiring on 08 June 2011 for an estimated total of $722,571.00. Out of that amount we have only obligated $69,764.00; however COR stated that before end of FY10 an estimated $400k might be obligated on task orders leaving an approximately balance of $253k.

Because we still working on the follow on contract. My recommendation is to increase the funding amount on current option; however if I do so do I need to request a new cost proposal? Or this is just a simple modification to increase funding? Please note funding will be increase only up to 25% of total contract value which is $3,495,370.

This simple scenario with my limited experience have me really thinking. I appreciate if someone with experience can help point me the right direction.

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Situation:

CPFF IDIQ contract on its third Option Year which is the last option on the contract. Option Year III was exercised on 09 June 2010 and expiring on 08 June 2011 for an estimated total of $722,571.00. Out of that amount we have only obligated $69,764.00; however COR stated that before end of FY10 an estimated $400k might be obligated on task orders leaving an approximately balance of $253k.

Because we still working on the follow on contract. My recommendation is to increase the funding amount on current option; however if I do so do I need to request a new cost proposal? Or this is just a simple modification to increase funding? Please note funding will be increase only up to 25% of total contract value which is $3,495,370.

This simple scenario with my limited experience have me really thinking. I appreciate if someone with experience can help point me the right direction.

You need a J&A to go past $3,495,370. See Liebert Corp., B-232234.5, Apr. 29, 1991, 91-1 CPD para. 413 at 11-12.

Remember that J&As can be challenged successfully. This is particularly true if the need for a sole source is attributable to the agency's lack of advance planning.

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You need a J&A to go past $3,495,370. See Liebert Corp., B-232234.5, Apr. 29, 1991, 91-1 CPD para. 413 at 11-12.

Remember that J&As can be challenged successfully. This is particularly true if the need for a sole source is attributable to the agency's lack of advance planning.

Thanks for replying, do I also need a reviseed cost proposal? Does this constitute additional work?

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Thanks for replying, do I also need a reviseed cost proposal? Does this constitute additional work?

If you are increaing the ceiling, this is additional work. You will need a sole source memorandum or a J&A. The document you need depends upon the size of the ceiling increase. My assumption is that the increase will exceed the SAT. So, you will need a J&A.

You will need a proposal from the contractor. With an IDIQ contract for services, I assume you have line items with labor categories, estimated hours and estimated costs per hour. I also assume that your ceiling is the sum of subtotals of line item cost extensions. If you decide to proceed with a sole source, I recommend that you identify to the contractor the labor categories and labor hours for each category for which you seek a proposal.

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Can we get the terminology sorted out? When you two say "funding amount," "total contract value," and "ceiling," are you talking about the maximum quantity of an IDIQ contract, as discussed in FAR 16.504(a)(1) and (4)(ii)?

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If you are increaing the ceiling, this is additional work. You will need a sole source memorandum or a J&A. The document you need depends upon the size of the ceiling increase. My assumption is that the increase will exceed the SAT. So, you will need a J&A.

You will need a proposal from the contractor. With an IDIQ contract for services, I assume you have line items with labor categories, estimated hours and estimated costs per hour. I also assume that your ceiling is the sum of subtotals of line item cost extensions. If you decide to proceed with a sole source, I recommend that you identify to the contractor the labor categories and labor hours for each category for which you seek a proposal.

I made a mistake this is a FFP...the rest of the scenario still the same.

The area that is creating confusion on me is that this is not an incentive fee contract, therefore on my mind I am not increasing ceiling but adding funds?if I add funds to an option year that is currently running and its close to run out of funds on a FFP, does it means I am adding more work?

References:

https://akss.dau.mil/askaprof-akss/qdetail2...estionID=101408

http://www.wifcon.com/discussion/index.php?showtopic=766

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I made a mistake this is a FFP...the rest of the scenario still the same.

The area that is creating confusion on me is that this is not an incentive fee contract, therefore on my mind I am not increasing ceiling but adding funds?if I add funds to an option year that is currently running and its close to run out of funds on a FFP, does it means I am adding more work?

References:

https://akss.dau.mil/askaprof-akss/qdetail2...estionID=101408

http://www.wifcon.com/discussion/index.php?showtopic=766

I THINK I FOUND THE ANSWER ON THE FOLLOWING LINK...

http://www.wifcon.com/arc/forum28.htm

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Can we get the terminology sorted out? When you two say "funding amount," "total contract value," and "ceiling," are you talking about the maximum quantity of an IDIQ contract, as discussed in FAR 16.504(a)(1) and (4)(ii)?

Mr. Edwards, I was refering to the maximum contract amount for the current option. Thanks for reminding me of the importance to use the right terminology...no wonder why I was so confused!

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An increase in the maximum contract amount for an option would enlarge the scope of the contract. You cannot do that without a justification and approval for other than full and open competition.

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Duplicate post.

What happens when a CO modifies a contract to increase capacity without doing the necessary J&A? Is the capacity of the contract the original contract amount or should we still include the new capacity amount?

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What do you mean by "capacity"?

it is the upper limit on an IDIQ. The CO can only award task orders off of the IDIQ up to the capacity amount.

I am thinking that increasing the capacity in a unilateral mod is out of scope and needed a FAR part 6 J&A. If that J&A wasn't done, is the modification valid and can we continue to order task orders off of it up to that new capacity? Or do we need to complete the J&A before a task order can be ordered?

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The mod was improper. You should complete the J&A before placing any more orders.

The proper term is maximum quantity or maximum amount, not "capacity" or "upper limit."

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The mod was improper. You should complete the J&A before placing any more orders.

The proper term is maximum quantity or maximum amount, not "capacity" or "upper limit."

Thank you, that is what i thought, but I just wanted to make sure there wasn't a way around the J&A at this point. Thank you for your help.

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I should add that even with a J&A, you ordinarily cannot use a unilateral modification to increase the maximum quantity/amount of an IDIQ contract. You need a bilateral mod (a supplemental agreement).

However, for future reference, you might want to consider including an option to increase the maximum.

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