Establishing subline items
Proper establishment and classification of subline items is essential for effective contract management, tracking, and compliance.
Overview
FAR 4.1004 provides guidance on the establishment and use of subline items within government contracts to improve management, tracking, and accounting. Subline items can be either deliverable (requiring separate identification and tracking) or informational (used for administrative purposes). The section clarifies that deliverable subline items must follow the characteristics outlined in FAR 4.1003, while informational subline items do not. All subline items under a single line item must share the same contract type, and the parent line item should only include information common to all its subline items. The regulation details when and how to use deliverable subline items (e.g., for items with minor variations, collateral functions, or separate shipment identification) and how to properly position informational subline items within contract documentation.
Key Rules
- Use of Subline Items
- Subline items may be established for tracking performance, deliverables, payments, or for management purposes. They can be deliverable or informational.
- Deliverable Subline Items
- Used for related items needing separate identification, such as items with minor variations, collateral functions, or items identified at shipment.
- Informational Subline Items
- Used for administrative purposes, identifying information integral to the line item, and must be placed within the line item description (not in quantity or price fields).
- Consistency and Structure
- All subline items under a line item must be of the same contract type, and the parent line item should only include information common to all subline items.
Responsibilities
- Contracting Officers: Ensure subline items are established and documented according to these rules, and that deliverable subline items meet FAR 4.1003 characteristics.
- Contractors: Properly identify, price, and manage subline items as specified in the contract.
- Agencies: Use informational subline items for administrative tracking and ensure correct placement in contract documents.
Practical Implications
- This section ensures clarity and consistency in contract documentation, aiding in tracking, payment, and performance management.
- Misclassification or improper structuring of subline items can lead to confusion, payment delays, or compliance issues.
- Understanding the distinction between deliverable and informational subline items is critical for accurate contract administration.