4.1005-2 Exceptions
Source: FAR 4.1005-2 on acquisition.gov
FAR 4.1005-2 allows specific exceptions to standard data element requirements for certain contract types, but mandates that missing information be provided at the appropriate stage, such as order issuance.
Overview
FAR 4.1005-2 outlines specific exceptions to the standard data element requirements for line items and subline items in federal contracts. It clarifies when certain information—such as accounting classification, delivery details, item descriptions, and pricing—may be omitted or deferred, particularly for indefinite-delivery contracts, IDIQs, and requirements contracts. The regulation also addresses exceptions for item descriptions and pricing requirements when subline items or certain contract types are involved.
Key Rules
- Indefinite-Delivery Contracts
- Required data elements (accounting classification, delivery date/destination, period/place of performance) may be omitted at contract award but must be provided with each order.
- IDIQ and Requirements Contracts
- Quantity may be omitted at the line item level if total contract minimum/maximum or estimate is stated. For certain multiple-award IDIQs, price/cost may also be omitted at award if total minimum/maximum is stated.
- Item Description and PSC
- If deliverable subline items provide detailed identification, the main line item can use a general narrative description instead of detailed data elements.
- Single Unit or Total Price
- The requirement for a single unit or total price at the line item level does not apply if: (a) subline items are priced, (b) the item is not separately priced, (c) the contract is cost-reimbursement, T&M, or labor-hour, or (d) firm prices are set for elements but quantities are unknown until performance.
Responsibilities
- Contracting Officers: Ensure exceptions are applied correctly and required data is provided at the appropriate time (e.g., at order issuance for indefinite-delivery contracts).
- Contractors: Provide required data elements with each order and comply with pricing and description requirements as applicable.
- Agencies: Oversee compliance with data element requirements and exceptions, ensuring contract documentation is accurate and complete.
Practical Implications
- This section provides flexibility in contract structuring, especially for indefinite-delivery and complex service contracts.
- Contractors and contracting officers must be vigilant about when and how to provide required data elements to avoid compliance issues.
- Common pitfalls include omitting required data at the order level or misunderstanding when pricing or descriptions can be generalized or omitted.
(a) Indefinite-delivery contracts-
(1) General. The following required data elements are not known at time of issuance of an indefinite-delivery contract, but shall be provided in each order at the time of issuance: accounting classification, delivery date and destination, or period and place of performance.
(2) Indefinite-delivery indefinite-quantity (IDIQ) and requirements contracts.
(i) IDIQ and requirements contracts may omit the quantity at the line item level for the base award provided that the total contract minimum and maximum, or the estimate, respectively, is stated.
(ii) Multiple-award IDIQ contracts awarded using the procedures at 13.106-1(a)(2)(iv)(A) or 15.304(c)(1)(ii)(A) may omit price or cost at the line item or subline item level for the contract award, provided that the total contract minimum and maximum is stated (see 16.504(a)(1)).
(b) Item description and PSC. These data elements are not required in the line item if there are associated deliverable subline items that include the actual detailed identification. When this exception applies, use a general narrative description for the line item.
(c) Single unit price or single total price. The requirement for a single unit price or single total price at the line item level does not apply if any of the following conditions are present:
(1) There are associated deliverable subline items that are priced.
(2) The line item or subline item is not separately priced.
(3) The supplies or services are being acquired on a cost-reimbursement, time-and-materials, or labor-hour basis.
(4) The procurement instrument is for services and firm prices have been established for elements of the total price, but the actual number of the elements is not known until performance (e.g., a labor-hour contract for maintenance/repair). The contracting officer may structure these procurement instruments to reflect a firm or estimated total amount for each line item.