(Added May 12, 2006)

 

 

 

      (c)(i)  Continued contracts are issued solely for administrative reasons and do not constitute a new procurement.  When issuing a continued contract, the contracting officer shall—

 

                    (A)  Obtain approval at a level above the contracting officer before issuance of the continued contract;

 

                    (B)  Assign a procurement instrument identification (PII) number to the continued contract that is different from the PII number assigned to the predecessor contract, using the uniform PII numbering system prescribed in DFARS 204.7002, 204.7003, and 204.7004.  The predecessor contract will retain the PII number originally assigned to it;

 

                    (C)  Find a clear breaking point (for example, between issuance of orders, exercise of options, or establishment of a new line of accounting) to issue the continued contract;

 

                    (D)  Clearly segregate contractual requirements for purposes of Government inspection, acceptance, payment, and closeout.  Supplies already delivered and services already performed under the predecessor contract will remain under the predecessor contract.  This will allow the predecessor contract to be closed out when all inspection, acceptance, payment, and other closeout issues associated with supplies delivered and services performed under the predecessor contract are complete;

 

                    (E)  Include in the continued contract all terms and conditions of the predecessor contract that pertain to the supplies and services yet to be delivered or performed.  At the time it is issued, the continued contract may not in any way alter the prices or terms and conditions established in the predecessor contract;

 

                    (F)  Not evade competition, expand the scope of work, or extend the period of performance beyond that of the predecessor contract;

 

                    (G)  Provide advance notice to the contractor before issuance of the continued contract, to include the PII number and the effective date of the continued contract;

 

                    (H)  Modify the predecessor contract to—

 

                            (1)  Reflect any necessary administrative changes such as transfer of Government property, and make the Government property accountable under the continued contract;

 

                            (2)  Clearly state that future performance (e.g., issuance of orders or exercise of options) will be accomplished under the continued contract; and

 

                            (3)  Specify the administrative reason for issuing the continued contract; and

 

                    (I)  Reference the predecessor contract PII number on the face page of the continued contract to ensure traceability.

 

              (ii)  Sample language for the administrative modification to the predecessor contract is provided below:

 

                    “This modification is issued for administrative purposes to facilitate continued contract performance due to [state the reason for assigning an additional PII number].  This modification is authorized in accordance with DFARS 204.7001(c).

 

                    Supplies and services already acquired under this contract number shall remain solely under this contract number for purposes of Government inspection, acceptance, payment, and closeout.  All future [delivery orders] [task orders] [options exercised] will be accomplished under continued contract XXXXXXX.”