scarolina

Vern, I've attended your FAR Bootcamp, so I understand your response. Now back to business. The FAR does allow for a minimum stated quantity as noted in FAR 16.503(a)(1) and (2) and if I can give the contractor a reasonable minimum number of units, then I know it helps in the scheme of pricing. Thanks for answering my original question about the option periods. As I read your response, I have no obligation to exercise an option on a requirements contract, even though I still have the need and I can re-solicit my requirement with the possibility of going to a different vendor. Thanks again,

I see a requirements type contract as one that provides the contractor with some reassurance that the minimum quantities that I've stated in the solicitation will be purchased form that contractor. This thought is supposed to provide me with better pricing. The contractor can pre-purchase materials since he knows he will be supplying these items 16.501-2((4). If I have a base and 4 options years and past history shows that I have a continuous need for these items, at some risk, the contractor can plan ahead and save money. Now, I don't exercise my next option, and the contractor knows that I have a need, it seems underhanded that I enticed him with a requirements contract and then bailed out.

If the FAR allows you to not renew an option and go with another vendor, then that seems to defeat the purpose of a requirements contract. Of course going to a new vendor would require a new solicitation and I'm sure the old vendor would provide a proposal.

I'm soliciting a requirements type contract with a base and four option periods. I received a call from a new vendor that thinks they may be able to provide the services within the next two years. If I stay with the requirements contract, can I not exercise an option period and go with a new contract to the other vendor if they become qualified? I read FAR 16.503(a) A requirements contract provides for filling ALL actual purchase requirements... as saying if I have a contract with one vendor then I have to stay the course with that vendor. But does this include options? I thought I read (but can't find) a GAO case where the GAO ruled that if the Government had a continuing need, that not exercising an option and going with another vendor was not allowed. Thanks