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  • Question

    What notification/posting requirements are required to the other MAC holders if the amount is over the $3500 threshold for fair opportunity? Does it make a difference whether or not the ceiling increase is within scope or out of scope?


    Answer

    The multiple award contract you used for the initial order should have ordering procedures that would address what’s required to place orders and the notification requirements. I don’t know the total value of your order or the amount of your increase in ceiling price, so I recommend you check the MAC ordering procedures first to make sure you’re following them. These procedures should provide each awardee a fair opportunity to be considered for each order.

    Yes, it makes a difference if this is an in scope or out of scope change.  If this is an in scope change (either increasing the ceiling only for funding reasons or an increase in scope), this would require documentation to the file explaining the increase in ceiling along with the exception to fair opportunity. Approval of documentation is based on the dollar value of the order and agency regulations.

    Depending on the specifics of your increase in ceiling, the posting requirements are addressed in FAR 16.505(b)(2)(ii)(D) and FAR 5.301.

    If this is an out of scope change, I recommend you speak with your contracting officer and legal counsel to determine why you’re increasing the ceiling of an existing order rather than issuing a new order. If the modification is "out of scope" then it becomes a contract action as defined in FAR 5.001 and then the requirements at FAR 5.201(b)(1)(ii) apply. Depending on the justification for the out of scope mod (FAR 6.302-1 or FAR 6.302-2) and the dollar value, you may have to post the J&A. If the mod is not out of scope, there are no FAR or DFARS requirements for any notification; but the MAC may state you will notify the other contract holders.

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