52.213-3
Notice to Supplier
An order is only binding if your price does not exceed the stated maximum, and you must notify the Contracting Officer immediately if you cannot perform as ordered.
Overview
FAR 52.213-3, "Notice to Supplier," is a clause used in simplified acquisition procedures to clarify the conditions under which an order becomes firm and binding. The clause informs suppliers that the order is only considered a firm commitment if their quoted price does not exceed the maximum price specified in the contract schedule. It also provides instructions for invoicing and outlines the supplier's obligations if they are unable to perform as specified in the order.
Key Rules
- Firm Order Condition
- The order is only firm if the supplier's price does not exceed the maximum line item or total price listed in the schedule.
- Invoice Submission
- Suppliers must submit invoices directly to the Contracting Officer.
- Non-Performance Notification
- If the supplier cannot perform exactly as ordered, they must withhold performance and immediately notify the Contracting Officer, providing their quotation.
Responsibilities
- Contracting Officers: Must ensure the clause is included in applicable orders and process invoices received from suppliers.
- Contractors/Suppliers: Must verify their price does not exceed the stated maximum, submit invoices to the Contracting Officer, and promptly notify the Contracting Officer if unable to perform as ordered.
- Agencies: Oversee compliance with simplified acquisition procedures and proper use of this clause.
Practical Implications
- This clause protects the government from unauthorized price increases and ensures clear communication if performance issues arise. Suppliers must be diligent in reviewing order terms and communicating promptly if issues occur. Failure to comply can result in delayed payments or contract disputes.