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Chapter seven on the GAO Redbook (p seven-17) states "Inside a variable quantity deal (specifications or indefinite-amount), any essential minimum amount acquire need to be obligated if the contract is executed..." That prerequisite is fulfilled through the concurrent issuance of the very first purchase Conference the minimum amount; Notice which the GAO does not explicitly point out which the bare minimum has to be obligated to your contract, only that it should be obligated in the event the agreement is executed. Presumably, In case the GAO meant to make the previous statement, it would've.
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Underneath a demands agreement, the Government is virtually about the hook to acquire their items/providers from The seller to get a specified period of time. There may be a "optimum" amount of money established in which The federal government is tied to buy from The seller, and then the Government could go somewhere else. Less than an IDIQ, the Government demands to ensure a least (and obligate that quantity at time of award), but will not be necessarily tied to that seller over and above the bare minimum.
(5) The entire estimated price of the contract is at or below the simplified acquisition threshold; or
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The statement the author debunked ("There's no need to obligate the minimum amount after you award an IDIQ agreement. It is possible to wait around right until you issue an get to produce obligations.") is incorrect besides within the extremely constrained circumstance through which the bare minimum buy is issued concurrently Along with the award of The fundamental contract.
So In the event the goal for furnishing a minimal guarantee is to generate the IDIQ deal binding, exactly what is the reason of establishing a minimal warranty for choice intervals?
Part 3C (Bucks obligated) states that Should the award type has a worth (which it doesn't for IDV's) the value should be higher than or equivalent to zero.
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