16.506 Solicitation provisions and contract clauses
Source: FAR 16.506 on acquisition.gov
FAR 16.506 mandates the inclusion of specific clauses and provisions in solicitations and contracts for definite-quantity, requirements, and indefinite-quantity contracts to ensure proper contract administration and compliance.
Overview
FAR 16.506 prescribes the specific solicitation provisions and contract clauses that must be included in solicitations and contracts for definite-quantity, requirements, and indefinite-quantity contracts. It details which FAR clauses to use based on contract type, value, and specific circumstances such as small business set-asides, multiple awards, advisory and assistance services, and contracts involving subsistence for government use and resale. The section also references additional clauses for market research and small business participation when certain thresholds are met. Contracting officers must ensure the correct clauses and alternates are included to ensure compliance and proper contract administration.
Key Rules
- Clause 52.216-18, Ordering
- Required for definite-quantity, requirements, or indefinite-quantity contracts.
- Clause 52.216-19, Order Limitations
- Required for the same contract types as above.
- Clause 52.216-20, Definite Quantity
- Required for definite-quantity contracts.
- Clause 52.216-21, Requirements
- Required for requirements contracts, with specific alternates for nonpersonal services, subsistence, and small business set-asides.
- Clause 52.216-22, Indefinite Quantity
- Required for indefinite-quantity contracts.
- Provision 52.216-27, Single or Multiple Awards
- Required for indefinite-quantity contracts that may result in multiple awards, with exceptions for certain advisory and assistance services.
- Provision 52.216-28, Multiple Awards for Advisory and Assistance Services
- Required for task-order contracts for advisory and assistance services exceeding 3 years and $20 million, unless exempted.
- Other Clauses
- References to clauses for market research (over $7.5 million, non-commercial), small business participation (above substantial bundling threshold), and ombudsman requirements for multiple-award IDIQ contracts.
Responsibilities
- Contracting Officers: Must insert the correct clauses and alternates in solicitations and contracts based on contract type, value, and specific circumstances; ensure compliance with referenced thresholds and exceptions.
- Contractors: Must review and comply with the clauses included in their contracts, as these govern ordering, limitations, requirements, and dispute resolution.
- Agencies: Must oversee proper clause usage and ensure compliance with FAR requirements for contract type and value.
Practical Implications
- Ensures contracts are structured with the appropriate legal framework for ordering and performance.
- Reduces risk of disputes by clarifying order limitations, requirements, and award structures.
- Failure to include the correct clauses can result in noncompliance, contract disputes, or procurement delays.
(a) Insert the clause at 52.216-18, Ordering, in solicitations and contracts when a definite-quantity contract, a requirements contract, or an indefinite-quantity contract is contemplated.
(b) Insert a clause substantially the same as the clause at 52.216-19, Order Limitations, in solicitations and contracts when a definite-quantity contract, a requirements contract, or an indefinite-quantity contract is contemplated.
(c) Insert the clause at 52.216-20, Definite Quantity, in solicitations and contracts when a definite-quantity contract is contemplated.
(d)
(1) Insert the clause at 52.216-21, Requirements, in solicitations and contracts when a requirements contract is contemplated.
(2) If the contract is for nonpersonal services and related supplies and covers estimated requirements that exceed a specific Government activity’s internal capability to produce or perform, use the clause with its Alternate I.
(3) If the contract includes subsistence for both Government use and resale in the same Schedule, and similar products may be acquired on a brand-name basis, use the clause with its Alternate II (but see paragraph (d)(5) of this section).
(4) If the contract involves a partial small business set-aside, use the clause with its Alternate III (but see paragraph (d)(5) of this section).
(5) If the contract-
(i) Includes subsistence for Government use and resale in the same schedule and similar products may be acquired on a brand-name basis; and
(ii) Involves a partial small business set-aside, use the clause with its Alternate IV.
(e) Insert the clause at 52.216-22, Indefinite Quantity, in solicitations and contracts when an indefinite-quantity contract is contemplated.
(f) Insert the provision at 52.216-27, Single or Multiple Awards, in solicitations for indefinite-quantity contracts that may result in multiple contract awards. Modify the provision to specify the estimated number of awards. Do not use this provision for advisory and assistance services contracts that exceed 3 years and $20 million (including all options).
(g) Insert the provision at 52.216-28, Multiple Awards for Advisory and Assistance Services, in solicitations for task-order contracts for advisory and assistance services that exceed 3 years and $20 million (including all options), unless a determination has been made under 16.504(c)(2)(i)(A). Modify the provision to specify the estimated number of awards.
(h) See 10.001(d) for insertion of the clause at 52.210-1, Market Research, when the contract is over $7.5 million for the procurement of items other than commercial products or commercial services.
(i) See 7.107-6 for use of 52.207-6, Solicitation of Offers from Small Business Concerns and Small Business Teaming Arrangement or Joint Ventures (Multiple-Award Contracts) in solicitations for multiple-award contracts above the substantial bundling threshold of the agency.
(j) Insert the clause at 52.216-32, Task-Order and Delivery-Order Ombudsman, in solicitations and contracts when a multiple-award indefinite-delivery indefinite-quantity contract is contemplated. Use the clause with its Alternate I when the contract will be available for use by multiple agencies (e.g., Governmentwide acquisition contracts or multi-agency contracts). When placing orders under the multiple-award contract available for use by multiple agencies, the ordering activity's contracting officer shall complete paragraph (d)(2) and include Alternate I in the notice of intent to place an order, and in the resulting order.