Even though the option period is being exercised the last week of June for the Period of Performance of 1 July 2012 to 30 June 2013, is it acceptable to issue the task order the last week of June using the 1st option CLINS and putting a PoP on the order of 1 July thru 31 Oct? Or, because the order is being executed by the Contracting Officer during the last week of the Period of Performance of the base period, should the Contracting Officer issue the order using the CLINS and pricing of the base period for the known requirement beginning 1 July?
1. The FAR references quoted below in pertinent part are applicable to this response:
Open full Question Details
FAR 2.101 -- Definitions
“Contract” means a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and that, except as otherwise authorized, are in writing. In addition to bilateral instruments, contracts include (but are not limited to) awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications.
“Task order” means an order for services placed against an established contract or with Government sources.
FAR 16.501-1 -- Definitions
“Task-order contract” means a contract for services that does not procure or specify a firm quantity of services (other than a minimum or maximum quantity) and that provides for the issuance of orders for the performance of tasks during the period of the contract.
FAR Subpart 11.4—Delivery or Performance Schedules
FAR 11.403 Supplies or services
(a) The contracting officer may express contract delivery or performance schedules in terms of—
(2) Specific periods from the date of the contract; i.e., from the date of award or acceptance by the Government, or from the date shown as the effective date of the contract.
2. Pursuant to the definitions specified in FAR 2.101 and FAR 16.501-1, task orders for services are considered to be contracts. As provided for in FAR 11.403(a)(2), the Contracting Officer may establish “effective dates” for contracts which can be later than the actual contract award date. Therefore, assuming that current year (i.e., FY12) funding is being used, then we believe that the new task order in question that will be associated with Option 1 may be awarded during the last week of June with the requisite FY12 funding, but must specify an effective date of July 1 to match the start of the performance period of Option 1 and must be expressly stated as being associated with the Option 1 work effort.