16.501-1
Definitions
FAR 16.501-1 defines delivery-order and task-order contracts, clarifying how supplies and services can be ordered without specifying firm quantities up front.
Overview
FAR 16.501-1 provides definitions for key contract types used in government procurement: delivery-order contracts and task-order contracts. These definitions clarify the distinction between contracts for supplies and contracts for services that do not specify a firm quantity but instead allow for orders to be issued as needed during the contract period. Understanding these terms is essential for proper contract formation, administration, and compliance within the context of indefinite-delivery contracts.
Key Rules
- Delivery-Order Contract
- Defined as a contract for supplies without a firm quantity, allowing for orders to be placed for delivery during the contract period.
- Task-Order Contract
- Defined as a contract for services without a firm quantity, allowing for orders to be placed for tasks during the contract period.
Responsibilities
- Contracting Officers: Must use the correct contract type and terminology when drafting and administering contracts.
- Contractors: Should understand the nature of their obligations under these contract types, especially regarding order issuance and fulfillment.
- Agencies: Ensure proper use and management of delivery-order and task-order contracts.
Practical Implications
- These definitions are foundational for understanding and applying the rules in FAR Subpart 16.5.
- Misunderstanding these terms can lead to improper contract structuring or compliance issues.
- Contractors and contracting officers must be clear on whether a contract is for supplies or services and how orders will be issued under the contract.