[erlayman]

Doesn’t a purchase have to be for a concrete number ? How can the government order “up to” a certain amount over an undefined period ? I don’t know how these things are normally handled, but I am pretty sure it isn’t like that.

[Vermont Lt]

Usually contracts for “units” of an item are based on a bulk purchase price from a minimum to a maximum.

I have a government contract for my service. It is a fixed rate per unit and I have a minimum number of units. But they can purchase up to X units, giving me first right of refusal. I don’t have to provide more than the minimum, but if they want more, I am gauranteed the rate through the maximum units.

Does that make sense?

[Strategerist]

Doesn’t a purchase have to be for a concrete number ? How can the government order “up to” a certain amount over an undefined period ?

No.

It's called an IDIQ (Indefinite Delivery/Indefinite Quantity Contract). They've been around for years, and they're routine.

[dearolddad]

Doesn’t a purchase have to be for a concrete number ? How can the government order “up to” a certain amount over an undefined period ? I don’t know how these things are normally handled, but I am pretty sure it isn’t like that.

I was in procurement for over 45 years, and I can't ever recall placing a purchase order for an "up to" amount.