Is the following considered splitting a requirement? We have a repair and return contract that issues delivery orders with a 2 year PoP. Our cost schedule lists each part with an estimated turn around time. In many cases approximately 20% of the DOs have to be extended due to long lead part requirements etc. Would we be able to submit 2 DOs, for example one DO for repairs with an estimated repair time under 2 years and 2nd for those items with more than 2 year estimated repair times?
Thanks for your great question.
I think a good starting point would be to determine what a “split requirement” is.
The issue of splitting requirements comes up often when using the Government Purchase Card (GPC) so I am going to start there for the definition. Defense Pricing & Contracting (DPC) defines it as:
A split purchase occurs when a requirement that exceeds a Card Holder’s (CH) single purchase limit, is separated into two or more buys as a means of getting around the purchase limit. No CH may fragment/split purchases that exceed their single purchase limit as means to use the GPC. To do so is a violation of Federal procurement law.
A split purchase is the “intentional” breaking down of a known requirement to stay within the cardholder’s single purchase limit or to avoid breaking a certain dollar threshold.
As mentioned before, this definition is tied to Government Purchase Card Holders, but the idea of splitting a requirement on a contract (or in your case a Delivery Order) is extremely similar.
Based on the information you provided, it doesn’t appear that you are splitting requirements. As long as you are following the already agreed upon terms and conditions and the ordering guide of the overall contract, I don't see any issue with creating two Delivery Orders as long as they are truly separate.
For more information on my sources for this answer please visit: https://www.acq.osd.mil/asda/dpc/ce/pc/faq.html
Thanks again for your question!
