Term
Ceiling
The maximum dollar amount the government is allowed to order under a vehicle, a cap, not a promise to spend that much.
The ceiling is the most an agency can order under a vehicle before it needs a modification to raise it. It is a legal cap, not a forecast; agencies routinely fall well short of a vehicle's stated ceiling, and a large headline number does not mean that much work is actually coming. Treat the ceiling as the outer edge of what is possible, and look at actual task order history for a more honest read on what a vehicle is really worth.
In a sentence
"The total ceiling for this multiple-award IDIQ is set across all awardees combined, not per contractor." A big shared ceiling split among a dozen awardees can mean a lot less to any one of them than the number by itself suggests.
Also called
- contract ceiling
- maximum order value
- not-to-exceed amount
Terms like this show up in every federal notice. We translate them in place, on every notice in your trade.