Original Date: 05/20/2002
Revision Date: 01/18/2007
Information : Support Contracts
Without organic resources in all Western Pacific Ports, the Maintenance and Logistics Command-Pacific developed a “one-stop shopping” logistics support network with contractors who have been used and provide quality services. With the use of Long Term Support Contracts, the Command found that support for Coast Guard vessels has improved.
In maintaining a deployed logistics system, the Maintenance and Logistics Command-Pacific (MLCPAC) used the concept of an on-going support contract. When a recurred need is identified, MLCPAC uses Indefinite Delivery Indefinite Quantity (IDIQ) contracts, awarded on a best-value basis, to provide a long-term relationship with the contractor and reduce requirement identification for procurement cycle time. IDIQ contracts are long-term contracts defined as base year plus two to four optional year renewals against which delivery orders are issued. The contracts provide an annual minimum guarantee and maximum thresholds, generally defined in terms of a dollar amount. For the security of such a contract, MLCPAC requires either fixed price line items and/or a fixed labor rate. IDIQ contracts are used for several different materials and/or services such as integrated propulsion plan support, main diesel engine support, paint and preservation, janitorial services, topside painting, hub overhauls, and dive services.
MLCPAC realized several advantages from IDIQ contracts including consistent technical support for complex Coast Guard systems; reduced acquisition burden assumed by cutter crew; reduced acquisition cycle time for individual repair actions; and long-term business relationships with providers of quality services. With the use of IDIQ contracts, MLCPAC found that the right contractors can provide the fleet with the flexibility to rapidly order recurring work and improve the percentage of required maintenance the Command completes.
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