Indefinite Quantity
FAR 52.216-22 requires contractors to fulfill government orders up to a specified maximum, with only the minimum quantity guaranteed, under flexible indefinite-quantity contracts.
Overview
FAR 52.216-22, Indefinite Quantity, establishes the terms and conditions for indefinite-quantity contracts (IQCs), where the government commits to purchasing a minimum quantity of supplies or services but may order up to a specified maximum during the contract period. The clause clarifies that quantities listed in the contract schedule are estimates and not guaranteed purchases. Orders are placed as needed, and the contractor is obligated to fulfill orders up to the maximum quantity. The government must order at least the minimum quantity specified. There is no limit to the number of orders unless otherwise stated, and orders may require delivery or performance at multiple locations. Orders issued before contract expiration must be completed as specified, but the contractor is not required to deliver after a certain date, which must be inserted in the clause.
Key Rules
- Indefinite-Quantity Nature
- The contract covers estimated, not guaranteed, quantities; only the minimum is assured.
- Ordering Process
- Orders are placed as needed, and the contractor must fulfill up to the maximum quantity.
- Order Limits and Locations
- No limit on the number of orders unless specified; orders can require delivery/performance at multiple sites.
- Completion of Orders
- Orders issued before contract expiration must be completed per their terms, but no deliveries are required after a specified date.
Responsibilities
- Contracting Officers: Must specify minimum and maximum quantities, ensure proper order placement, and insert the final delivery date.
- Contractors: Must fulfill orders up to the maximum, deliver at multiple locations if required, and complete all orders issued during the contract period.
- Agencies: Must manage order issuance and monitor compliance with minimum/maximum quantities.
Practical Implications
- This clause provides flexibility for the government to order as needed while ensuring contractors are not overcommitted. Contractors must be prepared for variable order volumes and multiple delivery locations. Common pitfalls include misunderstanding the minimum/maximum obligations and failing to track order completion deadlines.