52.216-22 Indefinite Quantity
Source: FAR 52.216-22 on acquisition.gov
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.
As prescribed in 16.506(e), insert the following clause:
Indefinite Quantity (Oct 1995)
(a) This is an indefinite-quantity contract for the supplies or services specified, and effective for the period stated, in the Schedule. The quantities of supplies and services specified in the Schedule are estimates only and are not purchased by this contract.
(b) Delivery or performance shall be made only as authorized by orders issued in accordance with the Ordering clause. The Contractor shall furnish to the Government, when and if ordered, the supplies or services specified in the Schedule up to and including the quantity designated in the Schedule as the "maximum." The Government shall order at least the quantity of supplies or services designated in the Schedule as the "minimum."
(c) Except for any limitations on quantities in the Order Limitations clause or in the Schedule, there is no limit on the number of orders that may be issued. The Government may issue orders requiring delivery to multiple destinations or performance at multiple locations.
(d) Any order issued during the effective period of this contract and not completed within that period shall be completed by the Contractor within the time specified in the order. The contract shall govern the Contractor’s and Government’s rights and obligations with respect to that order to the same extent as if the order were completed during the contract’s effective period; provided, that the Contractor shall not be required to make any deliveries under this contract after _______________ [insert date].
(End of clause)