1. When I award the contracts, will the prices of the items awarded in DO 0001 be those initially submitted or must I recompete among those who recieve IDIQ contracts?
2. Which scenerio below represents the best practice?
A.) Award multiple IDIQ contracts and award the initial requirements to only the lowest offeror with DO 0001, then obligate the stated minimum dollars to the other awardees on DO's with the caveat that the awardees are not authorized to bill for their respective DO's. (In other words, the other awards would not have any deliverables and are issued only to satisfy the contract minimum dollars at the time of award.)
B.) Award multiple IDIQ contracts and divide the initial requirements among the awardees to satisfy the contract minimums upon the award.
1. The FAR references quoted below in pertinent part are applicable to this response.
Open full Question Details
FAR 2.101 – Definitions
“Delivery order” means an order for supplies placed against an established contract or with Government sources.
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.
FAR 52.216-22 -- Indefinite Quantity
(b) Delivery or performance shall be made only as authorized by orders issued in accordance with the Ordering clause. The Contractor shall furnish to the Government, when and if ordered, the supplies or services specified in the Schedule up to and including the quantity designated in the Schedule as the “maximum.” The Government shall order at least the quantity of supplies or services designated in the Schedule as the “minimum.”
2. We will address Question 2 first. Based on the express requirements of FAR 16.504(a)(1) as incorporated into IDIQ contracts by clause FAR 52.216-22, Scenario A is not a viable acquisition approach. Because the express terms of the IDIQ contract require the contractor to deliver any supplies ordered by the delivery order, the order cannot logically also state that the contractor shall not deliver these supplies. In other words, such a delivery order would not, in fact, satisfy the contract minimum dollars at the time of award and would not be compliant with the Government’s obligations under the IDIQ contract. However, because the Government must order the minimum requirements from all of the awardees pursuant to these FAR requirements, Scenario B is a viable acquisition approach and would be the only choice available between the two options presented in this inquiry.
3. In response to Question 1, because the Government must award the minimum quantities to each of the IDIQ contractors “as specified in the Schedule” of their contracts, which presumably contain the contract prices as initially submitted, then in our opinion, the Government could use Scenario B as described above and issue multiple delivery orders for the minimum IDIQ requirements set forth in each contract at the prices initially submitted and specified in each IDIQ contract as applicable.