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  • Question

    Does FAR 52.216-18(b) permit a PCO to modify the Unit Prices in the delivery orders by only modifying the IDIQ rather than the individual delivery orders? If the PCO cannot do this, can the PCO alternatively reference specific delivery orders in each modification to the IDIQ?


    Answer

    The IDIQ is the contract and the individual orders issued under the IDIQ are not considered to be individual contracts.  In order to give proper visibility and workload credit, the MOCAS system and DCMA tracks orders issued under an IDIQC as individual contracts. 
     
    The clause FAR52.216-18(b) Ordering (Oct 1995) states “All delivery orders or task orders are subject to the terms and conditions of this contract. In the event of conflict between a delivery order or task order and this contract, the contract shall control.” Technically what the PCO is doing is meeting the letter of what is required in the FAR 52.216-18(b)
     
    But FAR 16.505(a)(2) Ordering states, ““Individual orders shall clearly describe all services to be performed or supplies to be delivered so the full cost or price for the performance of the work can be established when the order is placed. Orders shall be within the scope, issued within the period of performance, and be within the maximum value of the contract.”  The PCO is required to track the full price for the performance of the work for each task order.  If the unit price is changed, the PCO must have a system to track the change in price for each task order affected.  Issuing a modification for each task order would be an effective way to establish the full price of the work being done on each task order.
     
    FAR 16-505(a)(7) states that orders placed under indefinite-delivery contracts must contain the following information:
     
    (i) Date of order.
    (ii) Contract number and order number.
    (iii) For supplies and services, contract item number and description, quantity, and unit price or estimated cost or fee.
    (iv) Delivery or performance schedule.
    (v) Place of delivery or performance (including consignee).
    (vi) Any packaging, packing, and shipping instructions.
    (vii) Accounting and appropriation data.
    (viii) Method of payment and payment office, if not specified in the contract (see 32.1110(e)).

    This FAR site requires each task order to contain the unit price and if the unit price is changed, a modification should be issued for each modification to reflect the new unit price. 




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