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Ceiling Value

Maximum dollar amount that can be obligated under a contract.

Definition

Ceiling Value Maximum dollar amount that can be obligated under a contract.

Definition

Ceiling value is the maximum total value that can be ordered under a contract. For IDIQs, it represents the upper limit of all task orders combined. Reaching the ceiling doesn't mean work stops - the government can increase the ceiling through a modification.

Related Terms

  • IDIQ

    Indefinite Delivery/Indefinite Quantity - umbrella contract for task orders.

  • Minimum Guarantee

    Minimum amount the government commits to ordering under IDIQ contracts.

  • Obligation

    Legal commitment of funds for a specific contract purpose.

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