General
Clearly stated, realistic delivery or performance schedules in solicitations are essential to promote fair competition, support small business participation, and control contract costs.
Overview
FAR 11.401 emphasizes the critical importance of clearly stating the time of delivery or performance in all solicitations. Contracting officers are responsible for ensuring that delivery or performance schedules are both realistic and aligned with the acquisition's requirements. The regulation warns against setting schedules that are unnecessarily short or difficult, as these can restrict competition, conflict with small business policies, and lead to higher contract prices. Additionally, solicitations must inform bidders or offerors how their proposals will be evaluated regarding delivery or performance timelines, unless such information is clearly unnecessary. When timely delivery or performance is especially crucial, the use of liquidated damages clauses is permitted, referencing FAR Subpart 11.5.
Key Rules
- Clear Statement of Delivery/Performance Time
- Solicitations must specify the required time of delivery or performance.
- Realistic Schedules
- Schedules must be achievable and tailored to acquisition needs, avoiding unnecessarily short timelines.
- Evaluation Criteria Disclosure
- Solicitations should inform offerors how delivery or performance timing will affect proposal evaluation, unless unnecessary.
- Liquidated Damages
- If timely delivery is critical, liquidated damages clauses may be included.
Responsibilities
- Contracting Officers: Must set and clearly communicate realistic delivery/performance schedules, disclose evaluation criteria, and consider liquidated damages when appropriate.
- Contractors: Must review and comply with stated delivery/performance requirements and understand how timing affects proposal evaluation.
- Agencies: Should oversee that schedules support competition and small business participation, and avoid unnecessary cost increases.
Practical Implications
This section ensures that delivery and performance schedules are fair, competitive, and achievable, supporting broader acquisition goals. Unrealistic schedules can limit competition, exclude small businesses, and increase costs. Contractors should pay close attention to delivery requirements and evaluation criteria in solicitations to remain competitive and compliant.