Price Summary - ID/IQ FFP conrtact

Excellent question for the government CO who sent you the RFP. If you can't wait for that answer, consider this: Is the proposal in support solely of the basic contract, or have you been asked to price an initial delivery order (as well)? If the RFP contemplates the award of a delivery order in conjunction with the award of the basic, consider pricing the proposal on the basis of the delivery order.

I am a contractor.

The General Instructions of FAR Table 15.2 require that the first page of your pricing proposal include "Proposed cost; profit or fee; and total"

On a FFP ID/IQ contract, what do I use as the basis for that amount - the minimum order quantity, or the maximum?

I would ask the contracting officer what he or she expects.

In my opinion, you should use the maximum "contract" amount. The minimum or maximum "order" amounts appear in the FAR clause 52.216-19, Order Limitations (Oct 1995). That clause deals with individual orders, not with the maximum contract amount.

Oftentimes, the maximum contract amount is derived by 1) multiplying the line item unit price or cost by the line item estimated quantity to arrive at a line item subtotal, then 2) summing the line item subtotals. If there are option periods, do this for the base period and option periods, then sum the subtotals for each period.

Oftentimes, the maximum contract amount is derived by 1) multiplying the line item unit price or cost by the line item estimated quantity to arrive at a line item subtotal, then 2) summing the line item subtotals. If there are option periods, do this for the base period and option periods, then sum the subtotals for each period.

Napolik, given the definition of cost or pricing data (focusing on facts), and given the potential liability for defective pricing, I would only price a proposal in this manner for ID/IQ contracts where how the maximum was derived was obvious, in terms of the quantities of items, and my proposal makes it abundantly clear what those assumptions are.

My comment is based on the idea that a PRICE is not the same thing as a RATE. So, except for contracts comprised solely of unit priced items, you may not have a price. For instance, the IDIQ basic may contain labor rates, but the labor mix and number of hours are determined on individual task orders.

You should ask the CO. But most solicitations contain a list of line items (labor categories) and blank spaces for proposed unit prices (labor rates) and minimum, maximum, and/or total amounts for each such item and/or for the entire list. The solicitation usually requires the offeror to insert its proposed numbers into the blanks and submit them as part of its proposal, bid, or quote. Assuming that the solicitation in question contains such a list, I would use that list for my proposed cost, profit or fee, and total.

It's possible, I suppose, that the CO wants a breakout of the cost and profit for each labor rate.

Yeah, you'd better ask the CO.

Depending on the answer of the CO I would also be prepared to ask the CO what the intent is with regard to requesting data on subsequent task/delievery orders is as well.