Common use of Minimum Guarantee Clause in Contracts

Minimum Guarantee. 5.1 The Government limits the minimum guarantee to extend only to the base contract period of performance for this IDIQ contract and only in the amount of $3000.00. Funding for this minimum guarantee will be obligated against this contract line item at the time of the base contract award. (NOTE: This is a minimum ordering amount; not a minimum payment.) Should the Government fail to award task order(s) with an aggregate value meeting or exceeding the minimum guarantee of $3000.00 within the period of performance of the base contract, then, ONLY after submittal of proof of contract damages from the contractor, the Government may pay the contractor up to $3000.00. Following the agency’s payment of an amount meeting/exceeding the minimum guarantee under a task order award during the base period, the agency will de-obligate funding for the minimum guarantee.