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Contract Pricing


duke38

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I have a new Delivery Order (40) for CLINs 0704 and 0709 of an single award IDIQ FFP with TM contract. There is range pricing built into these two CLINs. However since the award date there were two mods that were done under DO 12 and 18 that increased these range prices. The mods clearly states that these new prices applies to year 4 through 7, however I am being told that since these mods were to the DO and not the base contract, I cannot use these prices for my new DO. Is this true and if so what are my options? Thanks

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Duke,

I'm not the sharpest person that lurks here. Many are far smarter. But none of them have responded, so I'll tell you straight up: I don't understand enough about your situation to answer. You would have to add 5 or 6 key bits of info for me to even understand your dilemma, let alone offer any insight.

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Guest Vern Edwards

This is once of those questions to which the answer depends on what the parties said in the mod. The only appropriate response to such questions is: What does the contract say?

First, it improper (but not illegal) to use a task or delivery order to modify an IDIQ contract. The CO should use a contract modification (see FAR Part 43) to modify a contract (on Standard Form 30), not a delivery order or task order (usually on Optional Form 347 or DD Form 1155). See the definitions in FAR 2.101.

Having said that much, if the parties did modify prices in an order, the question is whether the changes affect only the order or both the order and the underlying contract. The only way to answer that question is to read (1) the language of the order in which the changes were made and (2) the file documentation. There is no universal answer to the question, which is why it makes no sense to ask the question here.

People ask these kinds of questions at Wifcon all the time, which suggests to me that there is some deficiency in training about contract law. Questions about the proper interpretation of specific contracts can be answered only by a reading of the contracts themselves and, in some cases, the file documentation. I say "in some cases" because it is the language of the contract itself that matters most. The parol evidence rule of contract law generally precludes the use of file documentation to contradict the unambiguous language of a contract document. See Cibinic, et al., Administration of Government Contracts, 4th ed., Ch. 2. Contract Interpretation, pp. 196-209.

So, even if duke38 were to give us more information, we would not be able to answer his question. In order to answer his question, "Is this true and if so what are my options," we would need the contract, all of its mods, the order in question, and the file documentation.

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