FFP Ceiling Increase?

Well, if the contract sets no price for quantities from 1 to 29, then I don't think you got competition for such quantities, and your agency and the contractor might not be contractually bound with respect to such quantities. If so,  then you may need a J&A depending on the price proposed for the quantity you want to buy.

This will boil down to how your agency wants to interpret law, regulation, and the contract.

Contractinggirl said:

The contractor gave us pricing for QTY 12 and it's double, maybe even triple the price above QTY 30. Do I need to do a J&A for the increase of the ceiling and have pricing take a look at the proposal the contractor gave us?

In addition to what Vern said, if this acquisition is considered out of the scope of the price competition, is this a cost based proposal or a commercial product based price?

If out of scope, it requires mutual agreement (it’s negotiable) and you have the right to know the basis for the proposed price. The contract shouldn’t allow the contractor to unilaterally “give  [you] [i.e., set] a new price.” 

I have a second question: Why do you need to raise the ceiling price of the ID/IQ? I.e., is this quantity in addition to the other estimated needs of hardware and services? If it’s out of scope, perhaps you could add the requirement but not necessarily revise the overall contract ceiling price of the ID/IQ.

Finally, I don’t understand why you wouldn’t “have pricing take a look at the proposal”. It appears that you don’t know the basis of the price or why it is so high. Someone needs to analyze it to prepare for negotiation, regardless of the question of whether it’s in-scope or out-scope.

Thank you Vern and Joel for your feedback and knowledge. Much appreciated. 

Yes, this is a commercial product based price. The quantity is within scope, I just don't think that price is justifiable and it's about 1/8th of the entire ceiling of the contract which was my concern but I will have a price analyst take a look and do their analysis and negotiate from there.

Thank you both! 🙂

Contractinggirl said:

I just don't think that price is justifiable

Have you asked for and received data other than certified cost or pricing data?

Hmmm...you are not required to use the IDIQ, right?  Why not a new procurement and let the contractor compete their price?

Retreadfed said:

Have you asked for and received data other than certified cost or pricing data?

Yes, the contractor needs to justify the reasonableness of their price if you can’t find other pricing information that would support the proposed price . See, for instance, 

12.209 Determination of price reasonableness.

While the contracting officer must establish price reasonableness in accordance with  13.106-3…or subpart  15.4, as applicable, the contracting officer should be aware of customary commercial products and commercial services and conditions when pricing commercial products and commercial services.

Both 13.106-3 and 15.4 may be applicable…

C Culham said:

Hmmm...you are not required to use the IDIQ, right?  Why not a new procurement and let the contractor compete their price?

I like the possibility of that Avenue, too.