In August 2020, the Federal Acquisition Regulation (FAR) was updated to implement Section 825 of the National Defense Authorization Act (NDAA) for fiscal year 2017, which amends U.S. 10.C. 2305(a)(3). This changed the requirement to consider price or costs as an evaluation factor for the award of certain multiple contracts. For procurement efficiency and in certain circumstances, such as. B the execution of a final order quantity or the completion of an order placed, the contractual ceilings may be exceeded by mutual agreement between the postal service and the supplier. When increasing the maximum order, the contracting entity must first determine whether the measure to increase the quantity or value in relation to the contractually agreed amount falls within the scope of the contract or whether anti-competitive procedures apply. (See Sections 5 to 8.9, Change Orders on The Customer`s Determination of the Scope of the Contract.) In the world of federal contracts, there are many different contract vehicles that use IDIQ contracts. Some of the most popular IDIQ contract vehicles are: Indefinite Quantity Contract – An Indefinite Delivery Quantity Contract (IDIQ) provides for an indefinite quantity of certain goods or services within a defined minimum (more than a nominal quantity, but must not exceed known requirements) and a maximum quantity (must be realistic) delivered to specific locations during the term of the contract when ordering. Use an IDIQ contract when a recurring need is anticipated and the exact requirements for the goods or services ordered during the term of the contract cannot be determined beyond the known minimum requirements. The minimum and maximum are provided to limit the price risk for the supplier by requiring the postal service to order the specified minimum and by setting a maximum requirement to be met by the supplier in the event of an order.
The minimum contract in conjunction with clauses 2 to 40: Supply and Order Restrictions is intended to protect the supplier from the obligation to operate at or beyond its capacity and for the postal service to reach fair and reasonable prices. IDIQ contracts are often awarded by various U.S. government agencies, including the General Services Administration (GSA)[6] and the Department of Defense. [7] They can take the form of multi-agency contracts under the Government-Wide Acquisition Contracts (GWAC) system or in the form of government-specific contracts. [8] In recent years, non-federal organizations have implemented the use of this terminology with respect to contract contracts and contract contracts. A multi-agency contract (MAC) is a mission or supply contract established by an agency for the use of government agencies to procure supplies and services in accordance with the Economy Act. MACs include information technology contracts entered into under 40 U.S.S.C§ 11314(a)(2). See section 4-1.4, Orders vs. Perpetual Contracts, for more information on orders against a single contract and contracts with perpetual deliveries and multiple contracts. Where multiple awarding of open-ended supply contracts is made, additional contract competition should be considered by the procurement team/SCM. In many cases, increased competition can be the best business decision.
However, competition is not always necessary; and the initial decision to compete with or cease to compete with the contracts shall not limit the ability of the contract agent to compete with or not compete with each other in order to meet the delivery needs of the postal service under a multi-service contract of indefinite duration. A government-wide procurement contract (GCCA) is an information technology contract or a supply contract established by a government-wide user organization that operates: open-ended supply contracts are used when the desired performance period is known, but the delivery or performance plan or the exact quantity (expressed in number of units or monetary values) of goods or services, that are required during the term of the contract, is unknown at the time of award. These contracts stipulate that an IDIQ with multiple attributions can be set up and awarded to multiple suppliers. Where it is necessary to award contracts for the multi-award contract, all winners with a basic contract will be invited to submit a proposal to give each contractor a fair chance to be considered for each contract. Where market competition is envisaged, contract staff must ensure that the contract indicates that all or part of the contracts may be in competition. Clause 2-39: The Ordinance, paragraph e., is used to inform suppliers that the postal service reserves the right to compete with orders between some or all suppliers who have contracts for identical or similar goods or services, and that the decision to compete with orders belongs exclusively to the postal service and is not guaranteed. Recently, there have been some changes to the importance of IDIQ for the Department of Defense (DoD), GSA, and NASA. In the case of multiple contracts with permanent service, contracting entities may decide to exclude one or more of the winners from a subsequent competition for a particular contract or to select a single winner for a particular contract if this is beneficial for the postal service. The reasons for this decision must be recorded in the file. (See 4-1.4.4.2 Decision to place an order – multiple awards.) Here`s what you need to know about these contracts. IDIQ contracts are most commonly used for on-demand service contracts, architect engineering (A-E) services, and contract contracts. Premiums are usually valid for a certain number of base years with renewal options for subsequent years.
As a general rule, these contracts do not have a total duration of five years. The government places orders for supplies (for supplies) or orders for tasks (for services) against a basic contract for individual needs. The minimum and maximum quantity limits are set in the basic contract either in quantities (for deliveries) or in dollars (for services). The government uses an IDIQ contract when it cannot predetermine the exact quantities of supplies or services it needs during the term of the contract beyond a certain minimum. [2] [3] The exact dollar amounts for the minimum amounts must also be disclosed. [4] Where the contracting entity finds that the measure falls within the scope, any quantity or added value exceeding the maximum amount of the contract shall be limited in nature and represent a small percentage compared to the existing maximum value. A bilateral treaty amendment that increases the maximum contract must be made before the postal service orders goods or services that exceed the specified maximum. If you modify a contract to increase the maximum number of contracts, a review and approval of the action is required. (See section 2-41.3.2 Reviews and approvals of orders, amendments, and order agreements.) All contracts with indeterminate quantities must include section 2-42: Undetermined quantity.
If you want to buy a GSA calendar, you should take advantage of this position in the federal market. Not only are IQPs often preferred by government clients, but GSA`s MAS program is the largest and most active of the IDIQ contracts. The award of a single contract without a supply of indefinite duration may be the best commercial solution in the following circumstances: Multiple contracts (FAR 16.504c) occur when a procuring entity awards two or more contracts from a call to provide comparable supplies and services where the award to a single supplier would not be practical or would not meet the overall requirements. Rewards apply to the same generic types of items at different times. However, the following must be true: The second type of IDIQ is the IDIQ with several rewards. This is the most common type of IDIQ contract and the type of contract vehicle that Schedule GSA contractors have. A demand contract obliges the postal service not to purchase the same goods or services from other sources during the term of the contract. A demand contract can be selected if the purchasing/SCM team decides to assign an order to a single source, but cannot obtain or otherwise predict quantity information to set a minimum contract, or if the goods or services required are so differentiated that the alternatives do not meet the needs of the postal service. . . .