52.216-21
Requirements
FAR 52.216-21 requires contractors to fulfill all actual Government requirements for specified supplies or services during the contract period, but does not guarantee purchase of estimated quantities.
Overview
- FAR 52.216-21 establishes the terms and obligations for requirements contracts, where the Government agrees to purchase all actual requirements for specified supplies or services from the contractor during the contract period, but does not guarantee any minimum or maximum quantity beyond what is stated in the contract Schedule. The clause outlines how orders are placed, the contractor’s obligation to fulfill them, and the Government’s rights in urgent situations or when contract limits are reached. Several alternates address specific scenarios, such as nonpersonal services, partial small business set-asides, and contracts involving subsistence for use and resale.
Key Rules
- Requirements Contract Nature
- The contract covers all actual requirements for specified supplies/services during the contract period, but estimated quantities are not guaranteed purchases.
- Ordering Procedures
- Orders are placed as needed under the Ordering clause, and the contractor must fulfill all orders within contract limitations.
- Government’s Purchase Obligation
- The Government must order all its requirements from the contractor, except as otherwise provided (e.g., urgent needs, contract limits).
- Order Limitations and Urgent Needs
- The Government is not obligated to purchase beyond contract limits and may seek other sources for urgent needs if the contractor cannot meet accelerated delivery.
- Completion of Orders
- Orders issued during the contract period must be completed even if performance extends beyond the contract’s end date, subject to a final delivery cutoff.
- Alternates for Special Scenarios
- Alternate clauses modify obligations for nonpersonal services, partial set-asides, and contracts involving resale or brand-name products.
Responsibilities
- Contracting Officers: Must ensure proper inclusion of the clause and any applicable alternates, issue orders per contract terms, and manage allocation between contractors in set-aside scenarios.
- Contractors: Must fulfill all orders placed within contract limits, maintain readiness for variable order quantities, and comply with delivery and performance requirements.
- Agencies: Oversee contract compliance, monitor order allocations, and ensure urgent needs are addressed per the clause.
Practical Implications
- This clause provides flexibility for the Government to meet fluctuating needs without committing to fixed quantities, while obligating the contractor to supply all required items/services. Contractors must be prepared for variable demand and understand that estimated quantities are not guaranteed. Misunderstanding the non-guaranteed nature of estimates or failing to comply with order fulfillment can lead to disputes or performance issues.