(b) Delegation of Authority. All delegations and redelegations shall be in writing.
(c) Dollar Thresholds. The following applies when determining the value of contract actions for clearance and other thresholds:
(i) For competitive actions that contemplate multiple awards of non-ID/IQ contracts, use the cumulative value of all potential contracts. For example, two individual awards resulting from a single solicitation, where one award is valued at $2.5M and the other award is valued at $3M would require clearance because the total of the two awards exceeds the clearance threshold of $5M.
(A) Exception. Use the individual contract value for A&E services, BAAs, SBIRs, and STTRs.
(ii) For multiple award ID/IQ contracts use the contract ceiling value (which is shared among contractors). For example, Program XYZ has a contract ceiling value of $2B and awards ID/IQ contracts to three contractors for $2B. Since the three contractors are required to share the $2B ceiling, the value of the action is $2B.
(iii) For modifications which incorporate changes resulting in both an increase and a decrease to the contract face value, use the sum of absolute values of the face value increases and decreases, not the net amount. For example, a modification which includes a price increase of $4M and a decrease of $3M would give an absolute value of $7M and would require clearance because that total exceeds the clearance threshold of $5M.
(iv) For noncompetitive business clearances, use the negotiation objective inclusive of any requested settlement range. For competitive contract clearances (single award), use the highest proposed amount in the competitive range.
(v) For modifications to add, delete or substitute items in IDIQ contracts or BPAs, the value of the action is as follows:
(A) For Service contracts where the contract action swaps out labor categories, use the sum of the absolute value of the fully burdened cost of one hour of each labor category added and/or deleted;
(B) For Supply contracts for small dollar high volume supply type items (i.e., widgets) use the sum of the absolute values of a single unit of each item added and/or deleted;
(C) For Systems IDIQ contracts where the contract action only adds, or only deletes, high dollar items such as upgrades, new sites, installations, etc. use the government estimate for known requirements (i.e., budgeted and programmed for) to determine contract value. If the modification incorporates both additions and deletions, use the sum of the absolute values of the government estimates for known requirements.
(vi) For both a single award BPA and for multiple award BPAs, use the government’s best estimate of all future ordering under the BPA(s).
(vii) For actions that significantly alter the contract (e.g., restructures), use the value of the contract being modified, either before or after the modification, whichever value is greater.
(viii) Requirements must not be broken down into more than one transaction for the express purpose of avoiding approval at a higher level.
(ix) For defective pricing actions, use the DCAA Recommended Price Adjustment (RPA).
(x) Direct questions surrounding the determination of contract value to the organization’s Clearance and Program Support office.
