Special Contracting Methods and Business Relationships
Special methods and relationships
Special contracting methods expand or alter normal procedures. IDIQ contracts provide for indefinite quantities during a stated ordering period; multiple-award IDIQ contracts require fair opportunity to be given to all awardees unless an exception applies. Options are priced and evaluated at award and exercised unilaterally when the government chooses; they are not automatic renewals. BPAs, GSA schedule orders, and GWACs are ordering vehicles with their own rules. OTAs are used for research and prototype projects and are not standard FAR contracts; they permit flexible terms and nonstandard intellectual-property arrangements. SBIR and STTR use set-asides and phased awards.
Business relationships raise integrity and competition issues. Teaming agreements, joint ventures, and mentor-protege arrangements can be permissible, but the government must avoid organizational conflicts of interest (OCI) and improper contingent fees. Subcontracting plans and small-business participation are enforced through reporting. Traps: assuming an IDIQ guarantees any minimum beyond the stated minimum; treating options as renewals; using an OTA when a FAR contract is required; and missing an OCI that biases the contractor's advice.
Worked example: a multiple-award IDIQ has three awardees and a $1 million order. The CO must provide fair opportunity to all three unless a documented exception applies; rotating orders without considering all awardees is not fair opportunity. Rule of thumb: in multiple-award IDIQ, fair opportunity is the default; document any exception.