Subpart 16.5
Indefinite-Delivery Contracts
FAR Subpart 16.5 establishes the framework and requirements for using indefinite-delivery contracts, ensuring agencies and contractors can manage uncertain or recurring needs while maintaining compliance.
Overview
FAR Subpart 16.5 covers the policies and procedures for using indefinite-delivery contracts, which are flexible contract vehicles used when the exact timing or quantity of supplies or services is uncertain. This subpart organizes the rules for three main types of indefinite-delivery contracts: definite-quantity, requirements, and indefinite-quantity contracts. It also addresses ordering procedures, solicitation provisions, and required contract clauses. The subpart is essential for contracting professionals who need to structure contracts that accommodate variable needs over a period of time, ensuring compliance with federal procurement regulations.
Key Rules
- Definite-Quantity Contracts (16.502)
- Used when a specific quantity of supplies or services is required, but delivery timing may be uncertain.
- Requirements Contracts (16.503)
- Used when the government anticipates recurring needs but cannot predetermine exact quantities; the contractor must fill all actual requirements during the contract period.
- Indefinite-Quantity Contracts (16.504)
- Used when both the quantity and timing of needs are uncertain; sets minimum and maximum limits for orders.
- Ordering Procedures (16.505)
- Establishes how orders are placed under indefinite-delivery contracts, including fair opportunity requirements and order limitations.
- Solicitation Provisions and Clauses (16.506)
- Specifies mandatory contract clauses and provisions for solicitations and awards involving indefinite-delivery contracts.
Responsibilities
- Contracting Officers: Must select the appropriate contract type, ensure proper ordering procedures, and include required clauses.
- Contractors: Must fulfill orders as specified and comply with contract terms.
- Agencies: Oversee contract administration and ensure compliance with ordering and reporting requirements.
Practical Implications
- Indefinite-delivery contracts provide flexibility for agencies with uncertain or recurring needs.
- Proper contract type selection and adherence to ordering procedures are critical for compliance.
- Common pitfalls include failure to follow fair opportunity requirements or omitting required clauses.