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  • Question

    How does one determine the MIN and MAX on a Contract of this type? Can you provide me some references? Thank you.


    Answer

    The MIN and MAX on an IDIQ type contract is based on estimated quantity limits which may be stated as number of units or as dollar values .  Here's some references from the Federal Acquisition Regulation which you might find helpful.

    FAR 16.501-2(b)(3) Indefinite-quantity contracts limit the Government’s obligation to the minimum quantity specified in the contract.

    FAR 16.504 Indefinite-quantity contracts.

          (a) Description. An indefinite-quantity contract provides for an indefinite quantity, within stated limits, of supplies or services during a fixed period. The Government places orders for individual requirements.  Quantity limits may be stated as number of units or as dollar values.

               (1) The contract must require the Government to order and the contractor to furnish at least a stated minimum quantity of supplies or services. In addition, if ordered, the contractor must furnish any additional quantities, not to exceed the stated maximum. The contracting officer should establish a reasonable maximum quantity based on market research, trends on recent contracts for similar supplies or services, survey of potential users, or any other rational basis.

               (2) To ensure that the contract is binding, the minimum quantity must be more than a nominal quantity, but it should not exceed the amount that the Government is fairly certain to order.

               (3) The contract may also specify maximum or minimum quantities that the Government may order under each task or delivery order and the maximum that it may order during a specific period of time.

               (4) A solicitation and contract for an indefinite quantity must-

                    (i) Specify the period of the contract, including the number of options and the period for which the Government may extend the contract under each option;

                    (ii) Specify the total minimum and maximum quantity of supplies or services the Government will acquire under the contract;

                    (iii) Include a statement of work, specifications, or other description, that reasonably describes the general scope, nature, complexity, and purpose of the supplies or services the Government will acquire under the contract in a manner that will enable a prospective offeror to decide whether to submit an offer;

                    (iv) State the procedures that the Government will use in issuing orders, including the ordering media, and, if multiple awards may be made, state the procedures and selection criteria that the Government will use to provide awardees a fair opportunity to be considered for each order (see 16.505(b)(1));

                    (v) Include a description of the activities authorized to issue orders; and

                    (vi) Include authorization for placing oral orders, if appropriate, provided that the Government has established procedures for obligating funds and that oral orders are confirmed in writing.

    FAR 16.505(a)(2) Individual orders shall clearly describe all services to be performed or supplies to be delivered so the full cost or price for the performance of the work can be established when the order is placed. Orders shall be within the scope, issued within the period of performance, and be within the maximum value of the contract.

    Also, see FAR 52.216-19 Order Limitations which clearly specifies the min and max by either quantity or dollar amount.

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