16.502
Definite-quantity contracts
Definite-quantity contracts should only be used when the government can accurately determine both the required quantity and availability of supplies or services in advance.
Overview
- FAR 16.502 defines and governs the use of definite-quantity contracts, which require the delivery of a specified quantity of supplies or services within a fixed period. These contracts are used when the government can accurately predict its needs in advance, and the required items or services are readily available or can be provided with minimal lead time.
Key Rules
- Definite-Quantity Contract Structure
- The contract specifies an exact quantity of supplies or services to be delivered or performed during a set period.
- Scheduling and Delivery
- Deliveries or performance are scheduled at designated locations as orders are placed during the contract period.
- Appropriate Use Criteria
- This contract type is only appropriate when the government can determine in advance both the quantity needed and the availability of the supplies or services.
Responsibilities
- Contracting Officers: Must ensure that requirements are well-defined and quantities can be accurately forecasted before using this contract type.
- Contractors: Must be prepared to deliver the exact quantity specified within the contract period and to designated locations as ordered.
- Agencies: Should use this contract type only when requirements and availability are certain, to avoid supply shortfalls or overcommitments.
Practical Implications
- This section exists to ensure that definite-quantity contracts are only used when requirements are predictable, reducing risk for both parties.
- It impacts daily contracting by requiring careful planning and forecasting before contract award.
- Common pitfalls include using this contract type when requirements are uncertain, leading to potential supply issues or contract modifications.