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  • Question

    1. Is a update to the initial IGCE required at each option year? 2. If an update is required, is there a specific reference?


    Answer

    The IGCE applies prior to award of a contract in the pre-award stage. After award, IGCEs are typically calculated for contract modifications that involve price changes (not tied to wage determinations or prices set by law or regulation). IGCEs are not updated after contract award for the total contract value since that is determined by negotiated pricing. 

    FAR 1.108(c) Dollar thresholds is the convention to follow in determining the contract value, see below. The total contract value after contract award should include the base period and all options. Additionally, for cost reimbursement CLINs, the total contract value should capture the "ceiling" or max estimate. 

    Unless otherwise specified, a specific dollar threshold for the purpose of applicability is the final anticipated dollar value of the action, including the dollar value of all options. If the action establishes a maximum quantity of supplies or services to be acquired or establishes a ceiling price or establishes the final price to be based on future events, the final anticipated dollar value must be the highest final priced alternative to the Government, including the dollar value of all options.

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