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  1. In use of options, one consideration given is undue risk to contractor (17.202(c)(1)). Is it possible that the contractor could cite several undue risks (performance, reputation, financial, operational, etc.) they would expose both themselves and the agency to risks far beyond the value of exercising the OY (and then ending up in termination/litigation)? I.e. it's in everyone's best interest to 'walk away' from this OY? Cost of new procurement < Cost of LOI/Exercise OY/termination/ligitation.
  2. @ji20874 I agree its atypical and I'm also not familiar with any mechanism, either. I'm wondering if the contractor gives four (4) months written notice on an approx. $10M/yr service contract, if the agency would be more inclined to LOI/extend option and terminate or if they would just issue a new solicitation and "walk away" from struggling incumbent. I think @Constricting Officer suggests the easiest thing to do is the latter and issue a new solicitation. Does "easiest" translate to "most likely" thing an agency should do? ๐Ÿ™‚
  3. Thank you. Agree that #1 would be the easiest. Is there any notification requirement that the incumbent contractor is subject to? I.e. must notify Government agency of their intent to decline option within 30-60-90 days or anything like that? Or provide agency "reasonable notice"? Kind of the reverse of the requirement for the Government to give an LOI to exercise an option?
  4. When an agency intends to exercise an option (usual authority 52.217-9; 30 days) and for various financial, operational, etc. concerns the incumbent contractor informs the agency that the incumbent contractor does not desire to continue performance during the upcoming option period; is that a termination for convenience, termination for default or does the agency just simply not exercise the option and begin the acquisition cycle for a new solicitation? Has anyone experienced this scenario and what are some of the applicable notification requirements/regulations/parameters for an incumbent contractor electing to decline/not accept/reject/not perform (not sure the correct verb to use there) a pre-priced option period? Thanks in advance, Additional Context: DOD, Service Contract
  5. Agreed. Thank you! (Disclosure: for anyone curious, this question was generated during acq planning only. I'm not experiencing problem(s) with any AbilityOne contractor. In my experience, they've been great! Find one near you today https://www.sourceamerica.org/nonprofit-locator.)
  6. So, the thoughts are that: -7005 (Business Systems) clause doesn't apply (i.e. exempt under price set by law/regulation, etc) - so it's either self-deleting or a clause prescription violation (agree), -7006 (Accounting System Admin) clause applies (is prescribed not by -7005, but by 48 CFR ยง 242.7503) so the accounting system criteria apply, As such, significant deficiencies may be identified by Contracting Agency (or DCAA audit assist) under -7006, A contracting officer can disapprove an accounting system under -7006, As such, corrective action process in -7006 applies, and... so... Thoughts on withholds? Possible or not possible? They're in -7005. -7006 just says, "do -7005" (paraphrase, lol). Thanks,
  7. Hey Contracting professionals, I'm trying to see if the DFARS 252.242-7005 (and other clauses and systems requirements referenced therein) apply to my AbilityOne Contractor... 252.242-7005 "applies to covered contracts that are subject to the Cost Accounting Standards", 48 CFR ยง 9903.201-1 - CAS applicability (b) [exemptions] (5) Contracts and subcontracts in which the price is set by law or regulation. Prices in the AbilityOne Program are set by the AbilityOne Comission (i.e. law or regulation). Therefore, even if I have included the 252.242-7005 and 252.242-7006 in my award, as CAS exempt, these will not apply to the AbilityOne contractor, correct? Thanks in advance, prudentmindstx
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