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  • Question

    Are there pros and cons of one contract vehicle over the other?


    Answer

    According to FAR 16.703(a)(3) a basic ordering agreement is not a contract.  FAR Subpart 16.5 describes indefinite delivery type contracts.  Contracts, of all types, can be awarded which incorporate terms and conditions  agreed to in a basic ordering agreement.  Basic ordering agreements can be as detailed and  specific as your situation deserves.  The more comprehensive and specific the terms and conditions agreed to in the basic ordering agreement, the more such agreements may save administrative time in awarding related contracts.   If your customer’s requirements are well defined, current, and can be definitively priced, you may consider moving directly to an appropriate contract.  A delivery  order or task order contract, such as the IDIQ, offers quantity and delivery flexibility when the item or service is well defined.  If, on the other hand, the requirements are broader and cannot be priced without more current and specific requirements definition, pursuing a basic ordering agreement may be appropriate.



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