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Showing results for tags 'FAR part 17'.
Found 2 results
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Good morning WIFCON! I have a unique opportunity to conduct a leader company contract (LCC) under FAR Subpart 17.4. This is an entirely new area of contracting for me, and in speaking to others in my office they are also inexperienced with this technique. Our office topically does commercial supply and service buys. Some background - We are a DoD command that primarily issues contracts subject to FAR 5.202(a)(1) (now FAR 5.101(b)(1)(ii)). As such, our sources of supply are limited to a small pool of vendors. We recently held a mini-industry day with several companies in an effort to grow our vendor pool. As part of the industry day, our command show-cased some of the tasks we complete, such as testing new items that could fit into the development of TTP's across the enterprise. During one of the show cases, one of our technical users described areas where we are looking to refine or develop new TTPs. A few months after the industry day, one of the sources produced an unsolicited proto-type and delivered it to the Government for testing. After determining it fulfills an area of need, the technical users now want us to contract for it. At this time, there are no other known items that are similar to it that could be modified to meet the mission needs. So when the end user submitted his procurement request, it was received as a sole source. Now, while I could support a sole source, the lead time for the quantity they are after extends well into the years, instead of months (we also have O&M funds which one could argue lead time exception to the bona fides, but my comptroller thinks a two plus year lead time is not in the spirit of the exception) that the end user would like to have them in. So, I went back to the manufacturer and inquired if they would be willing to allow other sources of supply to make this item in order for the Government to receive a fairly large quantity faster than if we only went to them and if they would provide assistance to them. They agreed. I have read through the RFO and compared it to the "old FAR." The old FAR has set forth limitations and procedures, which are lacking in the RFO (also note that the RFO DFARS is silent). What are some unforeseen things others have encountered as a result of a LCC? Do you have any lessons learned that you have implemented to help ensure successful performance? For the follower company, are those sources you provided to the leader as suggested sources or since it is in theory a sub-contract did the leader company select? I appreciate any and all feedback on this.
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I was assigned to administer an IDIQ contract with Options. FAR 17.202((2) says that an indefinite quantity contract can have options. We wish to exercise the IDIQ option. Since the IDIQ contract is unfunded as a whole (there are no funds required) does it follow that therefore we don’t need any funds to exercise the option? If there are no funds required on the base contract does this mean that there is no financial commitment on the IDIQ to verify funds for the option and that the Option is unpriced or $0? To exercise an unfunded Option appears to go against FAR 17.207©(1) and 15.403-2(a), which states that the exercise of an option must be at the price established at contract award or initial negotiation. Please clarify, is this correct?
