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  • Question

    How is DFAR 252.227-7027, Deferred Ordering, implemented within the three year period after technical completion of a contract? We agree the Government has the right to deferred ordering but what is the process? Is it requested by the government via email or letter or is a modification issued? Can a contract modification be issued after the contract is over?


    Answer

    I have looked at the regulation, intellectual property/open systems guidebooks and other acquisition discussion groups.  Deferred Ordering is frequently discussed, but  not addressed to this detail.  If I were the contracting officer for this contract, I would request the deliverables in a letter with a statement that the contractor has the right to an equitable adjustment...IAW 252.227-7027 "the Contractor shall be compensated for converting the data or computer software into the prescribed for, for reproduction and delivery". Based upon the contractors response, I would modify the contract with the delivery date and payment, if necessary.

    I think this is the most likely and preferred scenario because the contract is not "over" when the period of performance ends; It is over when the contract is closed out.  It usually takes more than three years after the end of the period of performance for the Government to complete a close-out of a contract.  For clarity, I would prefer to show the audit trail of deliverables and payment on the basic contract.  If the basic contract is truly closed, I would still need to use a contract vehicle to make payment.  I can use a credit card if it is under the micro purchase threshold, or a purchase order if under the simplified acquisition threshold (SAT), or a contract if over the SAT.

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