Have a T&M, 5 year contract under a GWAC where need to increase the ceiling about $1.5M based on increased workload required to incorporate new agency directives into SW workflow process. Original D&F for T&M was approved by HCA since 5 years. Have D&F for ceiling increase up at Competition Advocate who is insisting he cannot approve because, and only because, it needs to go to HCA since it's a 5 year T&M but can't give me a reference to back up his contention. Anyone else ever hear of this or can give me a citation to support his position? And of course, part of the funding they have to cover work is FY09

FAR 16.601( d) Limitations. A time-and-materials contract may be used only if?

(1) The contracting officer prepares a determination and findings that no other contract type is suitable. The determination and finding shall be?

(i) Signed by the contracting officer prior to the execution of the base period or any option periods of the contracts; and

(ii) Approved by the head of the contracting activity prior to the execution of the base period when the base period plus any option periods exceeds three years; and

(2) The contract includes a ceiling price that the contractor exceeds at its own risk. The contracting officer shall document the contract file to justify the reasons for and amount of any subsequent change in the ceiling price. Also see 12.207(b ) for further limitations on use of Time-and-Materials or Labor Hour contracts for acquisition of commercial items.

[underlining added]

FAR 16.601( d) Limitations. A time-and-materials contract may be used only if?

(1) The contracting officer prepares a determination and findings that no other contract type is suitable. The determination and finding shall be?

(i) Signed by the contracting officer prior to the execution of the base period or any option periods of the contracts; and

(ii) Approved by the head of the contracting activity prior to the execution of the base period when the base period plus any option periods exceeds three years; and

(2) The contract includes a ceiling price that the contractor exceeds at its own risk. The contracting officer shall document the contract file to justify the reasons for and amount of any subsequent change in the ceiling price. Also see 12.207(b ) for further limitations on use of Time-and-Materials or Labor Hour contracts for acquisition of commercial items.

[underlining added]

HCA approved the original D&F in accordance with 16.601(d)(1)(ii) quoted above. Question is under 16.601(d)(2), does the HCA have to approve the ceiling increase or is it the Competition Advocate since increase is $1.5M?