"The maximum permitted on each LOGCAP IV contract is $5 billion per year."

[CorpGovActivist]

"It is anticipated that the RFP will result in multiple awards, with a ten (10) year IDIQ contract, including one base year and nine (9) option years."

http://www.fbo.gov/servlet/Documents/R/1485219

"KBR expects Army to award LOGCAP 4 by end of Q1"

http://news.google.com/news?hl=en&ned=us&q=logcap

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"In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist." -- President Eisenhower, 1961
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"Disastrous" rise of "misplaced power"? There Ike goes again, emboldening the enemy.

- Dave

[cap]

1. IDIQ = indefinite delivery, indefinite quantity

aka open checkbook... the contract lets the government order as much as it wants.

[CorpGovActivist]

2. IDIQs and Halliburton Go Hand-in-Hand

http://www.google.com/search?hl=en&q=idiq+halliburton

The individual "task orders" are where Waxman's scrutiny will come to bear.

http://www.google.com/search?hl=en&q=halliburton+%22task+orders%22

- Dave

[conscious evolution]

3. Tell me I am seeing this right

Each task order is considered a seperate IdIq contract with a cap of 5 billion?And the way the contract is set up it is easy for them to hit that cap?

[CorpGovActivist]

4. No, Task Orders ...

... are issued against a company's master award. The total billed across all awarded task orders cannot exceed the master award cap of $5B.

- Dave

[CorpGovActivist]

5. Check This ...

... out: http://www.fas.org/sgp/crs/mideast/RL32229.pdf

It provides a decent description of how task orders are issued against the master contract award.

- Dave

P.S. Search on "task order."

[conscious evolution]

6. Thanks for the link

Answers several questions.Raises a few also.

I'm still not sure how a IDIQ is defined.

Also,who is CRS? Are they a goverment entity or are they an independent group,like a thinktank,or something similar?

[CorpGovActivist]

7. More on IDIQ's: An Actual Example Involving Halliburton

Check out this website regarding the DTRA CTRIC program: http://ctric.dtra.saic-trsc.com/

DTRA = Defense Threat Reduction Agency

CTRIC = Cooperative Threat Reduction Integrating Contract

Shown on the lefthand side of the site are the five companies that received a master contract award at the outset of the program.

Those master contracts don't actually award any work. They simply give a "license to hunt" on the task orders that ensue under the program.

On any given task order (e.g., to destroy weapons grade nuclear material in the Ukraine), any subset of the 5 awardees may elect to bid. From the bids received on that given task order, the Government chooses.

Usually, there is a nominal guaranteed amount that every awardee receives at the end of the contract, if no task orders have been awarded to it (usually something like $1,000).

ID/IQ contracts are often selected when the actual need will be difficult to gauge at the outset of the program. The actual need could vary from the anticipated need tremendously. In this case, imagine that a former Soviet Republic unexpectedly decides to scrap its entire nuclear program. DTRA would suddenly have an unexpected need, but has a stable of 5 pre-qualified bidders. Conversely, maybe that same former Soviet Republic undergoes a regime change, and the new regime decides to preserve its arsenal.

Here are the definitions of contract types: http://www.acquisition.gov/far/current/html/FARTOCP16.html

Who is CRS?

http://www.loc.gov/crsinfo/whatscrs.html#about

: )

- Dave