My questions are:
1) Should we go forward with the option period but shorten the PoP to 9/30/16 - 7/31/17?
If we did scenario one we would reduce the price from 12 months to 10 months due to difference in PoP dates.
2) If the contractor receives their new GSA contract prior to the beginning of our PoP (9/30/2016) can we issue the delivery order but change the contract number in the narrative of the delivery order and issue the option for the entire PoP?
If we did scenario two would the company be obligated to honor the price quoted in the original DO for the entire PoP?
Thank-you for your help.
Given the limited information provided, the best answers that can be provided are as follows:
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Question #1: It depends upon at least two factors. First, is the current contract structured in such a way that it would allow for the reduction in the period of performance (PoP)? If so, then would that reduction in PoP satisfy the requirement?
Question #2: As a general rule, once the new GSA contract is in place, you will be able to utilize it. The terms and conditions of the new contract would apply.
Additionally, you may have an argument that your exercise of the option, if done in accordance with the terms of your order and the overarching GSA FSS, allows you to assert that the contractor is required to continue performance until 9/29/2017. That argument is premised upon the guidance provided at the GSA website: http://www.gsa.gov/portal/content/203021
In their FAQs, GSA notes that there are two clauses contained within Schedule contracts that are relevant to this issue. Clause 52.216-18 states that orders may be issued through the contract expiration date. This means that on the last day of the effective period of the contract an order may be issued.
Clause 52.216-22 states that if an order is not completed within the effective period of the contract that it shall be completed within the time specified in the order. In February 2016, GSA modified some Schedule contracts to include the base FAR clause 52.216-22 INDEFINITE QUANTITY (OCT 1995) to allow options on orders to be exercised after the effective period. Please check the Schedule contract to see which clause is in the contract.
I recommend that you determine if these clauses are in your GSA FSS. Discuss the issue with your legal staff and see if they are willing to support the position that performance can be required of the contractor until 9/29/2017.