1. Has the DPAP made a decision on whether IDIQ Task Orders are to be closed out as separate contracts?
2. Where can I find the reference that the courts have recognized that orders issued under IDIQ are governed by the laws of options?
3. Since this was the case and may still be applicable, does and extension of services under clause 52.217-8 provide for the ability to adjust funds on CLINs to ensure CLINs are sufficiently funded to prevent an anti-deficiency situation?
1) I don’t know if we can say “DPAP has made a decision”; they have clarified the guidance as identified in the fact DFARS 208.804 and PGI 208.804 have been updated a few times since issuance of your referenced AAP question; the last time being 30 September 2015.
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In short, you have some latitude in how to formally document closeout of individual task and delivery orders but the basic indefinite delivery contract must also be closed out and confirmed that all task or delivery orders are physically complete etc., see FAR 4.804-5(b)(5).
One common way (if only FFP CLINS) is to have a DD Form 1594 for every TO/DO (or a block of them) and do a DD Form 1593 and 1597 for the basic contract at the end or at intervals. It is more complicated for orders that have cost reimbursable CLINS; in this case you could do quick closeout if the conditions are met (see FAR 4.804-1(b) and 42.708).
2) This question confuses us. Orders issued under an indefinite delivery contract are guided by the ordering clause(s) in your contract and options are guided by the option clause(s) in your contract. We are unaware of what case (court or board) law you are referring to. In any event, if there were such a decision or ruling, we are very confident it had to do with specific facts and circumstances surrounding that individual contract or order.
3) Another question that confuses us. In the event you have the authority to use 52.217-8 as justification to extend your service contract; the appropriation laws (i.e. time, purpose, and amount) still apply, as always. In almost all instances, the modification extending the contract term would cite 52.217-8 on the SF 30 Block 13 D (or maybe C). Any funding additions, subtractions, or other adjustments to CLINs would be referenced in Block 14. CLINS always need to be sufficiently funded to prevent an ADA violation; it makes no difference what the modification is for or what authority is used to issue the modification.