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  • Question

    Can a facility services contract exceed $4 million dollars in total capacity?


    Answer

    The simple answer is yes, properly structured service contracts are able to accomodate whatever dollar value required to perform the required tasks or services outlined in the performance work statement.  This includes the base year contract and any options that may be included and are exercized in the contract. General guidance for service contracts may be found in the FAR Part 37, DFARS 237 and NMCARS Part 5237.  Additionally, DODI 5000.74, dated January 5, 2016 provides additional guidance for service contracts.

    The above is an accurate answer to your question in general, however in order to find a specific answer for your specific contract you must read the contract.  If there are terms or conditions which limit the contract in any fashion they would apply and must be followed or modified in contract execution by both parties.

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