Subpart 4.10
Uniform Use of Line Items
FAR Subpart 4.10 mandates a standardized approach to creating and managing contract line items to ensure clarity, accountability, and efficient contract administration.
Overview
FAR Subpart 4.10, "Uniform Use of Line Items," establishes the requirements for the consistent creation, use, and management of line items and subline items in federal contracts. Its purpose is to standardize how contract requirements are described, priced, tracked, and reported, ensuring clarity and transparency throughout the acquisition process. This subpart covers the scope and policy for line item use, applicability to various contract types, procedures for establishing line items and subline items, required data elements, handling of contract modifications, and provisions for alternative line item proposals in solicitations.
Key Rules
- Scope and Policy
- Defines the requirement for uniform line item structure in contracts to facilitate administration, payment, and reporting.
- Applicability
- Specifies which contracts and situations require adherence to these line item standards.
- Establishing Line Items and Subline Items
- Outlines procedures and criteria for creating line items and subline items, including necessary data elements.
- Modifications and Alternative Proposals
- Provides guidance on how to handle changes to line items and allows for alternative line item proposals in solicitations.
Responsibilities
- Contracting Officers: Must ensure contracts are structured with proper line items and subline items, include all required data elements, and comply with modification procedures.
- Contractors: Must understand and respond to solicitations using the prescribed line item structure and provide alternative proposals when requested.
- Agencies: Oversee compliance with line item requirements and ensure accurate reporting and payment processes.
Practical Implications
- This subpart exists to improve contract clarity, facilitate payment and reporting, and reduce administrative errors.
- It impacts daily contracting by requiring detailed attention to how contract requirements are broken down and tracked.
- Common pitfalls include incomplete or improperly structured line items, missing data elements, and failure to update line items during modifications.