August 8, 2016 - Schedule Contracting

Keeping Your Options Open -- Why Not To Worry About GAO's AllWorld Decision On Task Order Options

GSAFor years, federal agencies have issued task and delivery orders, under Federal Supply Schedule and indefinite-delivery, indefinite-quantity contracts, that include many years of options that extend well beyond the underlying contracts’ ordering periods. And for years, agencies have exercised those options without regard to whether the time for placing new orders under the underlying contracts had expired.

Earlier this year, however, the Government Accountability Office threw sand in the gears of this long-established practice. In AllWorld Language Consultants, Inc., Comp. Gen. Dec. B-411481.3, Jan. 6, 2016, 2016 CPD ¶ 12; 58 GC ¶ 65, GAO came to the surprising conclusion that an agency could not exercise options included in an FSS order after the underlying FSS contract’s ordering period had expired, even if the FSS order containing the option was issued during the FSS contract’s ordering period.

Please see the full article as published by The Government Contractor.

Reprinted from The Government Contractor, with permission of Thomson Reuters. Copyright © 2016. Further use without the permission of West is prohibited.