GAP in extending POP
Started by VinceS · Nov 8, 2010 · 4 replies
- VOriginal post
VinceS
Nov 8, 2010 · 15y ago
Background: I am a subcontractor working under a particular Task Order for several years. The end customer just recently delayed the extension of the period of performance for our effort. The POP expired on 30 Oct and the end customer didn t modify the contract until 3 Nov. Now our prime contractor sent us a modification stating that the POP expired on 30 Oct and the current POP begins 3 Nov. This is all within the same task order on the same line. And the funding is in one lump sum. I am not privy to the govt mod to the prime, but I just assume is was an extension of the end date.
Question: Is it possible to have two (2) POP s within one task order for the same effort with only one bucket on money? I would assume that if they are not going to bridge the gap, we would either need a new line on the TO or a completely new TO, correct?
- F
FAR Fetched
Nov 8, 2010 · 15y ago
Did the Prime refuse to make the new POP start Nov 1st? Did you receive an NTP or letter of intent etc. to keep you working past Oct 30th? Has this happened before (last option years)? What type of Task Order is it (FFP, T&M etc.)?
Also, I hope you're not confusing the 'effective date' with the 'POP' - or maybe your Prime is.
- V
VinceS
Nov 8, 2010 · 15y ago
Did the Prime refuse to make the new POP start Nov 1st? Did you receive an NTP or letter of intent etc. to keep you working past Oct 30th? Has this happened before (last option years)? What type of Task Order is it (FFP, T&M etc.)?
Also, I hope you're not confusing the 'effective date' with the 'POP' - or maybe your Prime is.
I just heard back from the prime and you comment about 'effective date' is accurate. They state that there is a new effective date. However, they are still trying to modify our existing Task Order with two seperate POP's but not seperating out the funding. I am arguing that if we have to track this seperately. Am I wrong?
History: It has happened before but the gap was backdated and our risk period was covered. They did request that we not proceed, however, we took the risk and will now eat those two days. This is a T&M Task Order
- F
FAR Fetched
Nov 10, 2010 · 15y ago
The short answer with the information I have is Yes, the Prime/Sub Task Order can have two or more periods of performance within the same Task Order.
The long answer is how your accountants booked the funding last year and if that funding was tied to Option Years your contract.
I don't think your Prime is doing anything 'wrong', it's just sloppy Subcontracting management in my opinion.
If I issued a Task Order for Oct 1 to Sep 30 for 100k and the sub only used 40k. I wouldn't just extend the POP or at a new one, I'd issue a modification to the Task Order deobligating the unused 60k, close out that Task Order and issue a new Task Order for 60k. Or if it's a Base + Options type of agreement, I would have deobligated the unused funding and exercised the Option with the 60k.
- L
Loul
Nov 11, 2010 · 15y ago
One item you are overlooking, in my opinion, is that if the POP ended on 30 October and no option was exercised, chances are that the Prime Contractor no longer has a unilateral right to exercise the option. Check your contract for exact wording on on the right and process for exercising an option.
If this is true, you can always try to negotiate a new effective date going back to 1 November, or negotiate new, higher labor rates.