Does IDIQ need to be "option period"- specific?

0001 Base year, FFP, 1 Oct X1 through 30 Sep X1

0002 Option 1, FFP, 1 Oct X2 through 30 Sep X2

0003 Option 2, FFP, 1 Oct X3 through 30 Sep X3

0004 Option 3, FFP, 1 Oct X4 through 30 Sep X4

0005 Option 4, FFP, 1 Oct X5 through 30 Sep X5

0006 FFP/IDIQ, 1 Oct X1 through 30 Sep X5

That's okay. And in the above case you do not need a minimum for the IDIQ CLIN, since CLIN 0001 is sufficient consideration to bind the parties with respect to the option CLINs and the IDIQ CLIN.

Thank you very much, Vern. This is helpful.

I have another inquiry concerning structure of this non competitive award of a Firm Fixed Price (FFP) contract:

The hypethetical CLIN 0006 (above) is for fixed, fully burdened technician hours, in the event our government techs need guidance or can't fix, post acceptance and operation. The preponderence of the value of what we are buying is commercial (Part 12) supply.

My issue is colleagues insist that I consider it a T&M (Labor Hour) contract and do the D&F. I don't have problem with D&F, per se, but it appears that I don't have the authority for this 'hybrid approach' at all, pursuant to FAR 12.207(, because this is non competitive.

Any guidance? If I truly don't have the authority, I am inclined to delete the FFP/IDIQ CLIN 0006 and negotiate a mod to the contract when the need for such hours arise.

I appreciate any feedback. Thank you very much.

E

the reference was FAR 12.207( but the system turned it into a smiley face.

We need to get sorted out on your description of CLIN 0006. Is it FFP or is it L-H?

Are you going to have a list of burdened hourly rates for different labor categories? If so, are you going to use them to set firm-fixed prices for task orders or are you going to pay the contractor at those rates by the hour without requiring the contractor to finish the job as a condition of payment? If the former, then the task orders will be FFP and you don't need a D&F. If the latter, then you will have an L-H contract and you will need a D&F.

So... which is it?

Vern--

Thank you. I apologize for the unclear message.

The CLIN 0006 is intended to be IDIQ, one labor category "technician", and be priced inclusive of all burdens.

We intended to have this fixed hourly rate for this technician and would negotiate the number of hours needed upfront (if this need arises).

We would then issue a task once we secured an agreement on number of hours and the funding.

I do not considered this to be "T&M/LH", but so many seem to consider this to be T&M that I am doubting myself.

E

You still are not being clear. Would you issue a task order based on a firm-fixed-price or a ceiling price? What payment clause will apply to the orders -- FAR 52.232-1 or FAR 52.232-7?

The task would be issued as fixed price and the only payment clause would be FAR 52.232-1.

This has helped me a great deal, Vern. I am sticking to my original plan.

I started out thinking that I did not need D&F, this CLIN is FFP/IDIQ because I had fixed rate for a single type of technician, and intended to negotiate the hours before ordering.

Then, my colleagues insisted this was T&M/LH (and not IDIQ), citing FAR 12.207(, etc.

Thank you very much!

Remember: It's the fact that orders will be firm-fixed-price, not the fact that the IDIQ contract will contain fixed hourly rates, that exempts you from the need to justify T&M or L-H. Fixed hourly rates do not make a contract FFP.