Ordering
FAR 16.505 mandates fair opportunity, clear documentation, and specific procedures for ordering under indefinite-delivery contracts, with strict requirements for exceptions and high-value orders.
Overview
FAR 16.505 governs the ordering procedures for task-order and delivery-order contracts under indefinite-delivery contracts. It establishes requirements for order placement, fair opportunity, exceptions, documentation, and special procedures for brand-name items, protests, and small business set-asides. The section details the information required in orders, the use of performance-based acquisition, and the need for acquisition planning. It also outlines the process for justifying exceptions to fair opportunity, approval thresholds, and public posting requirements. Special rules apply to orders exceeding certain dollar thresholds, including postaward notifications and debriefings. The regulation also addresses ombudsman roles, small business considerations, and limitations on ordering periods for advisory and assistance services.
Key Rules
- Order Requirements
- Orders must clearly describe services or supplies, be within contract scope, period, and value, and use performance-based methods for services when practicable.
- Fair Opportunity
- All awardees under multiple-award contracts must be given a fair opportunity to compete for orders above the micro-purchase threshold, with specific exceptions and documentation requirements.
- Brand-Name Justifications
- Restricting orders to brand-name items requires written justification, approval, and public posting for orders over $40,000, unless security or other exceptions apply.
- Order Content
- Orders must include specific information such as contract/order numbers, item descriptions, pricing, delivery schedules, and payment details.
- Protests and Notifications
- Protests are limited to certain circumstances and thresholds; unsuccessful offerors must be notified and debriefed for orders over $7.5 million.
- Documentation and Posting
- Decisions, justifications, and exceptions must be documented and, in many cases, posted publicly, with redactions for proprietary or sensitive information.
- Ordering Period Limits
- Advisory and assistance service contracts are generally limited to a 5-year ordering period, with specific exceptions and a one-time extension allowance.
Responsibilities
- Contracting Officers: Must ensure fair opportunity, proper documentation, compliance with justification and posting requirements, and adherence to order content and approval thresholds.
- Contractors: Must respond to order opportunities, comply with order requirements, and may file protests or complaints as allowed.
- Agencies: Must designate an ombudsman, oversee compliance, and ensure acquisition planning and reporting.
Practical Implications
- FAR 16.505 ensures transparency, competition, and accountability in ordering under indefinite-delivery contracts. Contractors must be vigilant about fair opportunity, documentation, and protest rights. Contracting officers face significant procedural and documentation obligations, especially for exceptions and high-value orders. Common pitfalls include inadequate justifications, missing required order information, or failing to provide fair opportunity.