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  • Question

    We are trying to determine if we need to notify Congress on an IDIQ with a five year ordering period that ceiling price exceeds the $7M threshold, but no TO will exceed that threshold, when unexercised options are excluded.


    Answer

    DFARS 205.303(a)(i)(B) states “For indefinite delivery, time and material, labor hour, and similar contracts, report the initial award if the estimated face value, excluding unexercised options, is more than $7 million. Do not report orders up to the estimated value, but after the estimated value is reached, report subsequent modifications and orders that have a face value of more than $7 million.” 
    You are required to make a public announcement of the initial contract award if the estimated face value, excluding unexercised options, is more than $7 million.  Put another way, if the base year of your 5 year ordering period (assumption here is that you are awarding a base period plus 4 unexercised option periods) has an estimated face value of more than $7 million, you are required to make a public announcement.  If not, you are not required to make a public announcement of the initial contract award. 

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