Awarding an option that will have task orders that exceed KO warrant

Hi all,

I'm a Procurement Analyst with Army MEDCOM and this topic is always asked. This is the warrant policy for the Army: 

 “ A warrant must be equal to or greater than the cumulative contract value (base and options) of an initial award, including anticipated or ceiling contract values that may be realized by the issuance of an Indefinite Delivery Indefinite Quantity (IDIQ) or requirements contract.

 Warrants must be equal to or greater than the value of an individual delivery or task order, and the cumulative value to date when modifying a contract to exercise an option or increase scope.”

Basically, 

If the KO is doing a modification to a $10M contract, he/she needs to have a $10M warrant.

It used to be the value of the instant action.  If a KO was doing a $2M modification on a $10M contract, the warrant would have to be greater or equal to the $2M.

Orders against an IDIQ is the only exception.  Then it is the value of the order not the IDIQ.