TO RFP Proposal Preparation Costs

[CountryTime]

I am a new PCO in an organization and have been assigned a single source IDIQ. The IDIQ contains CPAF, CPFF, Cost, and FFP CLINs. I am preparing to issue a new task order RFP and the contractor has asked for Government concurrence that proposal preparation costs will be reimbursed whether the TO is awarded or not. In the past these costs have been charged direct in the proposal and covered as direct on the resultant task order. To my knowledge there has never been an advance agreement in place at the TO level (each TO is negotiated). The contractor is required to provide a proposal under the IDIQ terms and conditions. I have requested a wag from the contractor for proposal costs so I can enact an advance agreement and document the Government's consideration of the expected costs, but the contractor is refusing to provide. Instead they say they have always gotten concurrence for previous task orders although I can find no such documentation. I understand the advance agreement is not required. What are the options for providing concurrence to the contractor and how have you seen proposal costs covered in the event a TO is not awarded? I have requested a disclosure statement already, but have not yet received.

[Retreadfed]

1 hour ago, CountryTime said:

The contractor is required to provide a proposal under the IDIQ terms and conditions.

Without seeing all the terms of the contract, it seems that if the contractor is required to incur the cost to prepare and submit a proposal, they should be paid for it.  Why do you think an advance agreement is necessary here?   Isn't the contractor incurring costs in accordance with the terms of the contract? How are the task orders priced?

[C Culham]

2 hours ago, CountryTime said:

In the past these costs have been charged direct in the proposal and covered as direct on the resultant task order.

Based on limited info...

Does the IDIQ have specific pricing where you might be paying the prep costs twice?

If the IDIQ is going to be used alot could you cut a FFP TO to pay the prep effort now and not have to deal with on the eaches?

I wonder what was the minimum guarantee based on?  Putting the KTR in a position to respond to your unilateral right to issue TOs?

All told it seems the instant IDIQ has departed from the ideal of intent of IDIQs.  It would be interesting to simply do a stand alone procurement for the same need and see what how KTR addresses the prep costs if they play in the standalone procurement?

 

[Vern Edwards]

Issue a task order to prepare a proposal.

Under the standard terms of a standard IDIQ contract you cannot require a contractor to do any work unless you issue a task order. See FAR 52.216-22(b): "Delivery or performance shall be made only as authorized by orders issued in accordance with the Ordering clause. "

Do you have a special clause in your contract that requires the contractor to prepare a proposal on demand without a task order to do so,  notwithstanding FAR 52.216-22? If you do, did you get an approved FAR deviation for its use?

What's the story, new contracting officer?

If you do have such a special clause, quote it to us.

[here_2_help]

As a contractor, I always appreciated it when our government customers funded a single TO for program management and TO proposal prep. We (and they) managed that single TO and then all the other TOs were solely for the work that was ordered. Simple, clean, and efficient--at least for us.

[Vern Edwards]

24 minutes ago, here_2_help said:

As a contractor, I always appreciated it when our government customers funded a single TO for program management and TO proposal prep. We (and they) managed that single TO and then all the other TOs were solely for the work that was ordered. Simple, clean, and efficient--at least for us.

Alternatively, (1) an IDIQ CLIN and (2) an annual fixed-price CLIN for contract management with the price based upon anticipated contract activity.

[CountryTime]

ALCON,

Thanks so much for your replies. As many of you have noted, the IDIQ requires the contractor to propose in response to an RFP so they should be paid for that effort. This past week we decided to put a management TO in place to provide for proposal preparation along with a few other tasks. This should solve the issue. We are on TO 15 or so and this has never been an issue, because previous PCOs have concurred with contractor requests to  cover TO proposal prep costs prior to TO award. Obviously the contract is lacking but hopefully this new management TO will right the ship....I appreciate the replies.