What was the value of the USAREUR Support Contract based on?
The Federal Acquisition Regulation requires the Government to specify both a minimum guaranteed contract amount and a maximum capacity of indefinite delivery/indefinite quantity (IDIQ) contracts. For the USAREUR Support Contract, the minimum guaranteed contract amount is $5 million for the first year and $1 million for each of the four subsequent option periods if options are exercised. The contractor is entitled to the minimum guaranteed amount in the first year, as well as the minimum guaranteed amount in any option periods that are exercised, whether or not the Government orders services during those periods. The maximum capacity of the contract for the five-year period is $1.25 billion. This means the Government cannot order any more services under the USAREUR Support Contract once it has already ordered, cumulatively over the life of the contract, $1.25 billion of services. That capacity is based on the estimated cost of services in the Balkans when the acquisition was initiated i
