Is a defense contract ceiling guaranteed revenue?
For a U.S. indefinite-quantity contract, the ceiling is the upper purchasing limit. The stated minimum is the government’s commitment. Orders and funding records show how much of the capacity has been used.
Reading the number in context
A notice gives a $100 million maximum and describes an initial $8 million order. Record the maximum and order separately. Adding them to report $108 million counts the initial order once on its own and again inside the vehicle it draws on.
Can I divide a shared ceiling among the winners?
An equal division is only an assumption. Order competition and agency requirements determine who receives work. Check whether the published limit applies across the vehicle or to one awardee before assigning any figure to a company.
Read the source
Federal Acquisition Regulation, Subpart 16.5