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Content Last Revised: 10/27/83 |
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Code of Federal Regulations Pertaining to ESA |
| Labor |
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| Office of the Secretary of Labor |
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| Labor Standards for Federal Service Contracts |
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| Application of the McNamara-O'Hara Service Contract Act |
29 CFR 4.142 - Contracts in an indefinite amount.
- Section Number: 4.142
- Section Name: Contracts in an indefinite amount.
(a) Every contract subject to this Act which is indefinite in amount
is required to contain the clauses prescribed in Sec. 4.6 for contracts
in excess of $2,500, unless the contracting officer has definite
knowledge in advance that the contract will not exceed $2,500 in any
event.
(b) Where contracts or agreements between a Government agency and
prospective purveyors of services are negotiated which provide terms and
conditions under which services will be furnished through the use of
service employees in response to individual purchase orders or calls, if
any, which may be issued by the agency during the life of the agreement,
these agreements would ordinarily constitute contracts within the
intendment of the Act under principles judicially established in United
Biscuit Co. v. Wirtz, 17 WH Cases 146 (C.A.D.C.), a case arising under
the Walsh-Healey Public Contracts Act. Such a contract, which may be in
the nature of a bilateral option contract or basic ordering agreement
and not obligate the Government to order any services or the contractor
to furnish any, nevertheless governs any procurement of services that
may be made through purchase orders or calls issued under its terms.
Since the amount of the contract is indefinite, it is subject to the
rule stated in paragraph (a) of this section. The amount of the contract
is not determined by the amount of any individual call or purchase
order.
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