16.505
Ordering
FAR 16.505 ensures fair competition, transparency, and proper justification for orders under indefinite-delivery contracts, with strict requirements for exceptions and documentation.
Overview
FAR 16.505 establishes the procedures and requirements for placing orders under indefinite-delivery contracts, including both task-order and delivery-order contracts. It covers order content, fair opportunity requirements, exceptions, justifications, pricing, protests, and special rules for certain types of acquisitions. The regulation aims to ensure transparency, competition, and compliance when agencies issue orders under multiple-award contracts, with specific rules for brand-name justifications, small business set-asides, and orders exceeding certain dollar thresholds.
Key Rules
- Order Content and Scope
- Orders must clearly describe requirements, be within contract scope, period, and value, and include specific information such as delivery schedule, payment method, and NAICS code.
- Fair Opportunity
- For orders above the micro-purchase threshold under multiple-award contracts, all awardees must be given a fair opportunity to compete, with exceptions requiring written justification and specific approvals.
- Brand-Name and Sole-Source Justifications
- Use of brand-name or sole-source items requires detailed justification, approval, and public posting (with security exceptions), especially for orders over $30,000.
- Order Procedures and Protests
- Streamlined procedures are encouraged, but orders above certain thresholds require competitive basis and documentation. Protests are limited to specific circumstances and thresholds.
- Postaward Notices and Debriefings
- Orders over $6 million require postaward notifications and debriefings for unsuccessful offerors.
- Order Documentation and Ombudsman
- Contracting officers must document award decisions and exceptions, and agencies must designate an ombudsman for order-related complaints.
- Limitation on Ordering Period
- Advisory and assistance service contracts are generally limited to a 5-year ordering period, with specific exceptions and a one-time extension option.
Responsibilities
- Contracting Officers: Must ensure fair opportunity, proper justification and approval for exceptions, complete order documentation, and compliance with posting and notification requirements.
- Contractors: Should respond to fair opportunity notices, provide necessary information for justifications, and may file protests or complaints as permitted.
- Agencies: Must designate an ombudsman, oversee compliance, and ensure acquisition planning and reporting as required.
Practical Implications
- FAR 16.505 is critical for ensuring competitive, transparent, and compliant ordering under indefinite-delivery contracts. Failure to follow fair opportunity or justification requirements can result in protests, delays, or contract disputes. Contractors should be aware of their rights and obligations, especially regarding competition, protests, and debriefings.