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  • Question

    When dealing with an IDIQ contract with multiple quantity ranges, would the contract value used for determining thresholds be based on the quantities used to calculate the ceiling price (J&A or IGE quantities), which is the anticipated value of the action or the maximum quantities the Government can order? Using the maximum quantities in every ordering period would certainly exceed the contract ceiling? Should subcontractors be required to provided CCPD based upon maximum quantities that are not likely to be ordered?


    Answer

    Neither FAR Part 2 nor FAR Part 15 provide an alternative definition specifically for the CCPD, so we use the guidance you cited from FAR 1.108(c). The "highest final priced alternative to the Government" would be the maximum quantity identified in the Schedule at the contract price (if FFP) or at the unit independent government cost estimate (if not FFP). The maximum quantities for every ordering period provide the Government with flexibility to accommodate surges in requirements but do not supersede the contract maximum value.

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