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Recommendations for Uncertain Costs over Multiple POPs


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Hello,

I am working with a FFP task order with one base year plus one option. There is a management piece to this requirement where the management costs are uncertain over the base year and option period for various reasons. However, the contractor knows how much the management services will cost over the life of the order. My question is, how can I arrange the FFP CLINs so that if the contractor does not use all of the management funds during the base period, they can use those funds for the option? Or vice versa, they end up needing more funds during the base and less during the option? Is it allowable to reallocate funds between periods of performance?

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If this is really a FFP order then the management costs are irrelevant, the contractor can use the funds they receive under the FFP order however they want. If you're trying to move funding from one CLIN to another via contract modification (e.g. partial termination of the base year and reuse of the deobligated funds for the option year) you may be able to find a way to do it, but it's going to be an appropriations law question dependent on the type of funds, base/option period of performance relative to the fiscal year, availability of exceptions to the bona fide needs rule applicable to your agency and situation, etc.

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