Severable Service Crossing Fiscal Year
Started by Freyr · Oct 26, 2020 · 6 replies
- FOriginal post
Freyr
Oct 26, 2020 · 5y ago
After years of working in an office no-year money, I've found myself in one where that stuff matters now! I have a severable service requirement (provide and maintain equipment) that they're looking to award in the next few months and the PMO put the contract end date as 9/30/2025. My question is why not just do it as a 12 month base with 12 month options? FAR 37.106( b ) appears to allow for this, and our agency supplement delegates it down to the Chief of the Contracting Office. It seems this would be a better solution than having to short the contract several months and putting it on the fiscal year cycle right?
- R
Retreadfed
Oct 27, 2020 · 5y ago
How is the PMO intending to get to 2025?
- F
Freyr
Oct 27, 2020 · 5y ago
Retreadfed said:
How is the PMO intending to get to 2025?
They're intending the POP to be from date of award to 9/30/2021 for the base, then 12 months for each period after.
- j
ji20874
Oct 28, 2020 · 5y ago
On 10/26/2020 at 4:21 PM, Freyr said:
My question is why not just do it as a 12 month base with 12 month options?
Great idea! Float the balloon, and see what happens. In addition to FAR 37.106(b), see also FAR 32.703-3(b). I wish EVERY severable services contract would get off the 9/30 end date.
- C
C Culham
Oct 28, 2020 · 5y ago
ji20874 said:
Great idea! Float the balloon, and see what happens. In addition to FAR 37.106(b), see also FAR 32.703-3(b). I wish EVERY severable services contract would get off the 9/30 end date.
Why not just a five year contract subject to availability of funds every year? FAR 32.703-3(a).
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Freyr
Oct 28, 2020 · 5y ago
C Culham said:
Why not just a five year contract subject to availability of funds every year? FAR 32.703-3(a).
My first thought was "oh no then we'd be subject to multiyear contracting rules!" Then I re-read FAR 17.1 and though "why the heck aren't we doing this?" I noticed this organization has had some issues with missing their window to exercise options, resulting in contracts ending then the team has to scramble to reacquire those services. It seems like just doing a 5 year contract that's SAF each year would eliminate that issue and possibly reduce our administrative burden. Unless I'm missing something...
Edit: Answered my own question!
Edit 2: @C Culham Maybe I am missing something, looking at FAR 32.703-3(b) says that it cannot exceed more than one year right? The way I'm reading it says you can do a base + options that aren't on the fiscal year but you can't do a single period that exceeds more than two fiscal years.
- C
C Culham
Oct 29, 2020 · 5y ago
Freyr said:
My first thought was "oh no then we'd be subject to multiyear contracting rules!" Then I re-read FAR 17.1 and though "why the heck aren't we doing this?" I noticed this organization has had some issues with missing their window to exercise options, resulting in contracts ending then the team has to scramble to reacquire those services. It seems like just doing a 5 year contract that's SAF each year would eliminate that issue and possibly reduce our administrative burden. Unless I'm missing something...
Edit: Answered my own question!
Edit 2: @C Culham Maybe I am missing something, looking at FAR 32.703-3(b) says that it cannot exceed more than one year right? The way I'm reading it says you can do a base + options that aren't on the fiscal year but you can't do a single period that exceeds more than two fiscal years.
I will retract the thought as offered with the idea of some other statutory authority but in a re-read I see where that possibility is not likely. The option is most likely the appropriate route following your idea. I do wonder now (sorry for throwing another idea out there) about an IDIQ with regard to "missing their window". Minimum order/first task order for the first period, subsequent task orders for the ensuing periods. Rules are a little bit different for capturing the window of opportunity to issue a task order. wifcon.com/bona/bonafide8.htm