Barbara S. Kinosky, Esq.

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Task, Delivery Order, and Schedule Contracting
Update and Best Practices
Barbara S. Kinosky, Esq. President Centre
Consulting, Inc. Monday, August 4 310
410 PM
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Indefinite Delivery Indefinite Quantity (IDIQ)
Contracts

• Authorized by FAR 16.504
• Requires the Government to buy a Guaranteed
  Minimum Amount under the contract but leave
  actual requirements to later determination

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Benefits of IDIQ Contracting

• Can be single award or multiple award
• Guaranteed Minimum is typically low
• Commitment of funds (beyond the guaranteed
  minimum) does not occur until actual orders are
  placed
• Task order awards have historically not been
  protestable

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IDIQ Contracting Issues

1. Must specify a reasonable maximum quantity (based
   on market research)
2. Must specific procedures for placing orders
3. Preference for Multiple award IDIQs- Market
   research acquisition planning must be employed
4. May not exceed five years in duration

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Multiple award IDIQ Contracts

• Preferred as a matter of policy FAR 16.504(c)
• Are mandatory for IDIQ advisory and assistance
  service requirements exceeding 3 years and 11.5
  million unless exception met

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Multiple Award IDIQ Ordering

• Fair Opportunity is required for all orders
  exceeding 3,000 except
• Urgent requirements
• Requirements that can be fulfilled by only one
  vendor or
• Requirements that are logical follow-ons to
  previously ordered requirements.
• FAR 16.505(b)

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DoD 2008 Authorization Act Changes for Task or DO
over 5 Million

• Notice of the planned task/DO
• Reasonable time to respond
• Disclosure of significant evaluation factors
• Best value documentation
• Post award debriefing

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Limits on Task/Delivery Orders in Excess of 100
Million

• Prohibition on award to a single source unless
  agency head determines
• Only single source can perform work, firm fixed
  price task orders, public interest

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Protests of IDIQ Task Orders

• Awards of task orders (a.k.a. down selects)
  have historically not been protestable
• Protests of task order awardsgt10M now authorized
  by 2008 DOD Appropriations Act
• Clean Contracting Act pending in Congress would
  lower that threshold to 5M.

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DoD Specific Requirement for Interagency Contracts
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Types of Interagency Contracts

• Interagency Contracting is authorized by law in
  one of three ways
• Orders placed against Federal Supply Schedule
  contract in accordance with FAR 8.4
• Orders placed against Government Wide Acquisition
  Contracts (GWACs)
• Orders made under the authority of The Economy
  Act. See FAR17.5

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Interagency Buys Using GWACs

• Congress has given special authorization to
  certain agencies (GSA, NASA, NIH Commerce) to
  create contracts for use by all government
  agencies. Contracts are also referred to as
  Government Wide Acquisition Contracts (GWACs).

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Interagency Buys Using FSS Contracts

• FSS contracts are maintained by the General
  Services Administration (GSA) or the Department
  of Veterans Affairs (VA)
• Federal buying agencies may place orders directly
  against FSS contracts under the procedures of
  FAR 8.404

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Mechanics of Interagency GWAC Contracts

• Contracting agency establishes contract terms and
  conditions and make contract awards under the
  contract
• Buying agencies place orders either directly with
  contractors or through the GWAC manager
• Contracting agency receives a management fee for
  operating the program

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FSS GWAC Issues

• Historically have enabled Govt program managers
  to end run their Contracts Dept
• Potential for out-of-scope ordering
• Potential for very minimal completion
• Interagency contracts may not reflect agency
  specific contracting requirements

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A Related Subject Assisted Acquisition Services

• Some federal agencies are authorized by law to
  establish fee-for-service assisted acquisition
  buying services for federal agencies

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OFPP Issues New Guidance

• As of October 1, agencies must make best value
  determinations
• Starting November 3, agencies must begin using
  the model interagency agreement

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Assisted Buying Benefits

• Enable buying agencies to leverage special
  expertise in certain procurement fields, such as
  IT contracting or performance based contracting
• Can be very beneficial for agencies with
  understaffed contracts departments

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Assisted Buying Issues

• Potentially high service fees
• Potential for end runs around in-house contract
  departments
• Assisting buying agency may not be attuned to
  agency specific acquisition issues or requirements

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Interagency Contracting under The Economy Act

• The 3rd method for Interagency Contracts
• Disfavored because use must be accompanied by a
  detailed Determination Finding (DF) and an
  explanation why a direct contract is not feasible
• FAR 17.503

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DOD Policy Interagency Contracts

• Use of Interagency contracting is permitted if
• DoD program managers coordinate with assisting
  buying entities to ensure reasonable competition
  is achieved and requirements are clearly
  reflected in SOWs
• For non-Economy Act procurements in excess of
  500,000, a DOD CO must review the order to
  ensure that it complies with DOD unique
  procurement requirements

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Special Note on BPAs

• BPAs are not subject to fair opportunity rules
  of FAR Part 16.5

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OFPP Interagency Working Group to Promote
Competition in Acquisitions

• Paul Denett called for new group to collaborate
  on acquisition practices that promote competition

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Questions?
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Thank Youbkinosky_at_centreconsult.com