T&M Rates with Escalation for Option Years
Started by Consupport · Jun 8, 2012 · 4 replies
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Consupport
Jun 8, 2012 · 14y ago
We have an IDIQ contract with proposed rates for Base period, Option1 with escalation, and Option2 with escalation. The first Task Order issued uses the Base Period rates and it is for less than a year. The second Task Order will be for more than a year, and it will be issued shortly before Base Period is up. What rates should be used to estimate the price of second task order, Base Period rates or Option1 rates? And should those rates prevail for the entire life of the second Task Order even if it's more than a year?
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Guest Vern Edwards
Jun 8, 2012 · 14y ago
The answers depend entirely on what the contract says.
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here_2_help
Jun 8, 2012 · 14y ago
You know, I had an answer and was well into typing it. Then I thought of another way of looking at it and came up with an equally valid answer.
Then I realized I couldn't answer the question because ... as Vern succintly says, it depends. It depends on the contract language.
H2H
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Retreadfed
Jun 8, 2012 · 14y ago
Consupport, you mentioned that a task order would be issued. A quick question, is the contract subject to the Service Contract Act?
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Consupport
Jun 8, 2012 · 14y ago
We are not subject to the Service Contract Act.
I think you all already answer my question. I read the contract several times and the sentence below is all what I found regarding pricing:
"Buyer can purchase from the Subcontractor, the listed services in the SOW at the prices for the corresponding Option Period. Buyer shall pay the Subcontractor in accordance with the rate schedule."