Follow On Recovery - Peru

When an individual AMD recovery contract ends but the recovery action is still pending resolution, we award follow-on contracts on a sole source basis to the original vendor (per FAR 16.505(2)(C)) as long as it is for the same recovery case(s). The rationale for this is the combination of contingency payment agreement and the frequent long length of the recovery process.

With limited vendor availability, if we did not follow this practice, the original vendor could perform most of the work and the subsequent vendor would reap the rewards of any funds recovered. By awarding follow-on contracts in this manner, we establish fairness for the vendors in an unusual situation, retain good relations with a limited vendor pool for future needs, and therefore get the best long-term benefit to the government.