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  • Question

    We are nearing our $10M limit and one anticipated modification may put us over. The modification will be made pursuant to the Changes Clause, as have all the other modifications on the contract. Do those modifications count toward the $10M limit?


    Answer

    I assume the clause at FAR 52.216-22 (Indefinite Quantity) was included in your contract. Paragraph (b) of the clause states: "...The Contractor shall furnish to the Government, when and if ordered, the supplies or services specified in the Schedule up to and including the quantity designated in the Schedule as the 'maximum.'" So if each contract has a $10 million maximum, that maximum refers to the dollar value of the quantity of items ordered, independent of additional costs that may be incurred due to in-scope Changes clause modifications (e.g., packaging, delivery). 

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