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  • Question

    If I have a multi year contract like a 5 year base with XX Option Years, and The total value might be exceeded before the last option year, how can I raise the ceiling for total Procurement Value?


    Answer

    We don’t have enough information from your question to answer it adequately.  However, provided below are some things you may want to take into consideration: 
     
    ·  Is this a “true” multi-year” contract or a contract for multiple years?  If it is the former, you would need to follow the requirements in FAR 17.1 and DFARS 217.1 (including potential Congressional considerations) versus a multiple year contract
    ·  If your funding is a concern, how is the cancellation ceiling being addressed? See FAR  17.106-1(c).
    ·  Is the contract for the acquisition of supplies?  Services?  Other?
    ·  What is the overall value of the effort?  If over $678.5 million, you have many issues to be addressed with Congress.  See DFARS 217.172. 
    ·  Why would you consider exercising an option if you know you don’t have sufficient funds?  This would be a violation of the Anti-deficiency Act.
     
    Strongly recommend you get together with your program management, funding, and contracting personnel working this issue to address the above issues at a minimum.  Would also strongly recommend seeking legal counsel given the funding concerns and potential scope issues (if you want to raise a ceiling).
     
     
    References:
    FAR Subpart 17.1 -- Multi-Year Contracting
    DFARS Subpart 217.1--Multiyear Contracting

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