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I assume being IDIQ that your contract contains FAR 52.216-19 Order Limitations:

52.216-19 Order Limitations (Oct 1995)

(a) Minimum order. When the Government requires supplies or services covered by this contract in an amount of less than _____________ [insert dollar figure or quantity], the Government is not obligated to purchase, nor is the Contractor obligated to furnish, those supplies or services under the contract.

(B) Maximum order. The Contractor is not obligated to honor?

(1) Any order for a single item in excess of _____________ [insert dollar figure or quantity];

(2) Any order for a combination of items in excess of ______________ [insert dollar figure or quantity]; or

(3) A series of orders from the same ordering office within _____________ days that together call for quantities exceeding the limitation in paragraph (B)(1) or (2) of this section.

(c ) If this is a requirements contract (i.e., includes the Requirements clause at subsection 52.216-21 of the Federal Acquisition Regulation (FAR)), the Government is not required to order a part of any one requirement from the Contractor if that requirement exceeds the maximum-order limitations in paragraph (B) of this section.

(d) Notwithstanding paragraphs (B) and (c ) of this section, the Contractor shall honor any order exceeding the maximum order limitations in paragraph (B), unless that order (or orders) is returned to the ordering office within _____ days after issuance, with written notice stating the Contractor?s intent not to ship the item (or items) called for and the reasons. Upon receiving this notice, the Government may acquire the supplies or services from another source.

In your scenario, $500K would be the figure found at (B)(1). The important paragraph here is (d) which states that the contractor shall honor ANY task order regardless of the dollar amout unless the contractor returns the order to the Government with the reasons why it can perform/deliver.

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I assume being IDIQ that your contract contains FAR 52.216-19 Order Limitations:

In your scenario, $500K would be the figure found at (B)(1). The important paragraph here is (d) which states that the contractor shall honor ANY task order regardless of the dollar amout unless the contractor returns the order to the Government with the reasons why it can perform/deliver.

Thank you! But WHY wouldn't ANY contractor want to EXCEED the $500k ceiling if given the opportunity?

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Thank you! But WHY wouldn't ANY contractor want to EXCEED the $500k ceiling if given the opportunity?

A couple reasons come to mind. One is the contractor has to comply with all the contractual requirments including some things as delivery dates. If they are unable to fulfill the order on time, they could be in a termination situation. Another is the contractor may not want to sell a valuable commodity in limited supply in too large a quantity to the Federal government. An example is the manufacturer of swine flu vaccine where they likely have other clients as well.

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A couple reasons come to mind. One is the contractor has to comply with all the contractual requirments including some things as delivery dates. If they are unable to fulfill the order on time, they could be in a termination situation. Another is the contractor may not want to sell a valuable commodity in limited supply in too large a quantity to the Federal government. An example is the manufacturer of swine flu vaccine where they likely have other clients as well.

That is excellent feedback and much appreciated! I've been in "Services" (Engineering/Design) for most of my Gov't involvement and have not put on my "manuufacturing" hat.

Again TY!

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The "ceiling" of the task order is $500K. I'm assuming the "cap" at the IDIQ level equates to the ceiling of $12M. A ceiling has meaning. I've always advised -- we cannot exceed it. I would look at either: A/ executing a mod and increasing the T.O. ceiling, IF within scope. If not in scope, then a justification is required; or B/ issuing another order (typically not too difficult if a single award IDIQ -- if multiple award, more hoops/time).

Unless this increase (from $500K) together with other task/delivery orders exceed the IDIQ ceiling -- there's no change needed/required at the IDIQ level.

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