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Section 5401.108: FAR Conventions

(c) Dollar thresholds. Subparagraphs (90)-(92) below provide guidance on how to determine the TINA threshold.

(90) The estimated contract value for an award action is to be calculated using the maximum quantity of the specific supplies or services priced in the award of a negotiated contract plus the maximum quantity of these same supplies or services obtainable under each applicable fixed and/or flexibly priced contract option included in the contract at time of award. Other modifications stand alone. The estimated contract value shall not include any amount for the quantity of any other items that are included in the contract on, or may be added after, the award date, but are unpriced as of award (e.g., items covered by an unpriced or undefinitized surge or other option).

(91) No amount shall be included in any dollar threshold estimate based on the value of any “price pending” item or option(s) or unpriced option(s) (which normally include a pre-established pricing methodology to establish firm prices or not-to-exceed ceiling prices subject to later definitization). As explained in DFARS PGI 215.403-1(C)(4)(A)(4), there is no price for unpriced supplies or services in such cases. The determination of whether TINA is applicable to such supplies or services shall be made at the time of exercise of such options when the price is determined.

(92) The contracting officer shall include in the official contract file, the calculations of the estimates of these maximum values of items covered in the award and the subsequent options cited in (90) and (91) above; and the estimate of the maximum value of items subsequently included by modification or other action expanding the number of items of supplies or services added to the contract.




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