# SAC/MSC IGC Maximum Order Threshold Clause Comments

1**.** With respect to the Maximum Order Threshold, I recommend doing
away with the term altogether since it has no practical value as
information or requirement. If that cannot be done, I suggest the term
"Volume Threshold".

2\. What is your experience on this subject matter? We have had a few
clients question the phrase Maximum Order Threshold. Once we have
explained the meaning, they have been satisfied. I personally have had
more Anteon employees ask me for the explanation than clients.

Does the level of confusion require changing the terminology or has the
confusion decreased? I personally believe that the existing level of
confusion does not warrant a change in terminology.

Will GSA cause more confusion by changing this again? I believe so.

Do you like any of the suggested revised terms above or do you have a
recommendation? I do not like any of the suggested terms. I do believe
that a simply explanation will suffice. I have added a couple of
sentences (see below) to your opening paragraph 1. that I believe would
be sufficient proof to show the clients/customers.

\"1. In accordance with FAR 8.404(b)(3), each schedule contract has an
established maximum order threshold. This threshold represents the point
where it is advantageous for the ordering office to seek a price
reduction. Note that the maximum order threshold does **not** represent
a maximum task order \$ value allowed for each task awarded. It
represents the point at which consideration of further discounts may be
made by the client/customer.\"

3\. I agree wholeheartedly with suggestions in comments (2) above.

4\. I like the suggestion of "Volume Threshold" suggested in comment
(1). Our experience, while limited, has been that the term "Maximum
Order Threshold" creates confusion with our customers.

5\. Based on our experience, contracting officers do not seem to have
any confusion about Maximum Order Threshold.

6\. New Name for Maximum Order Clause- Every time I see this clause, I
think of the \"Maximum Order Limitation Levels\" Clause that was in
effect when I entered the Schedules Program. It was ridiculous. If an
order or a single item on the order exceeded the levels, the PCO would
have to do a separate negotiated procurement. It was a waste of time and
effort and the ordering agencies would often split their requirements to
make certain that they didn\'t exceed the levels and violate the clause.
Of course, that was improper, too. The Maximum Order Clause as currently
described makes sense to me but I can see that there is confusion. The
only thing that anyone has to do is to read the Schedule Ordering
Instructions but that\'s asking too much.

Would changing the name of the Clause make a difference? I don\'t know,
but my suggestion is naming it:

\"Additional Discount Threshold Level\". Both the ordering agencies and
the Contractors would know that there is an additional discount
threshold level. They would still have to read the clause to understand
it but it gives more of a clue as to what it is about than the present
description of \"Maximum Order\".

7\. We prefer the name ODN-Order Discount Notification or DON-Discount
Order Notification.