Multi-Year Contracts
Started by Guest AF1985 · Dec 16, 2008 · 2 replies
- GOriginal post
Guest AF1985
Dec 16, 2008 · 17y ago
The Defense Logistics Agency and various military commands buy replinishment spares using IDIQ contracts. Usually a best estimated quantity is identified in the RFP for a Base Year and a couple of option years. However, the contracting agency is only required by the terms of the solicitation to order a minimum quantity in the Base Year or any Option Year. The minimum quantity could be 1 each. It is very difficult for a contractor to price such solicitations for any quantity other than 1 each because there is no quarantee of any buys above the minimum quantity.
Are the contracting agencies restricted from buying replenishment spares using multi-year contracts with termination provisions protecting the contractor in those situations in case the purchase quantity in an Option Year isn't bought?
- b
buyerman
Dec 17, 2008 · 17y ago
Multi-Year contracts required multi-year funding. Congress normally will not provide multi-year funding for supplies or services.
- f
formerfed
Dec 17, 2008 · 17y ago
Multi-Year contracts required multi-year funding. Congress normally will not provide multi-year funding for supplies or services.
That isn't entirely correct. There has always been debate on annual versus multi-year funding, especially for DoD. Multi-year can be used for DoD for O&M, aircraft and ship maintenance, specialized training, and base services with any type funding. It can also be used annual funding when specifically authorized. FASA allows civilian agencies to use multi-year authority with any type of funding.