CLIN (Contract Line Item Number)

What is CLIN (Contract Line Item Number)?

A Contract Line Item Number (CLIN) is a unique identifier assigned to each individual item, service, or deliverable purchased under a government contract. Think of it as a detailed breakdown of what the government is buying from you. Understanding and managing CLINs effectively is crucial for successful contract execution and payment.

Definition

The CLIN is a fundamental element of any government contract, providing a structured way to manage and track the various components of the agreement. It's defined in the contract schedule and typically includes a description of the item or service, the quantity, the unit price, and the total price. The Federal Acquisition Regulation (FAR) provides guidance on establishing and managing CLINs, emphasizing the need for clear and unambiguous descriptions. Without well-defined CLINs, contractors can struggle to properly allocate costs, track progress, and invoice accurately, leading to potential disputes and payment delays.

Key Points

• Unique Identification: Each CLIN represents a distinct item or service, allowing for specific tracking and accountability.
• Cost Tracking: CLINs are the primary mechanism for associating costs with specific contract requirements, ensuring proper financial management.
• Payment Basis: Invoices are typically submitted against specific CLINs, making their accuracy essential for timely payment.
• Modification Impact: Changes to CLINs often require formal contract modifications, impacting pricing, schedule, and deliverables.

Practical Examples

1. Software License Renewal: A contract for IT services might have a CLIN for annual software license renewals, specifying the software, the number of licenses, and the renewal cost.
2. Training Services: A contract providing training might include separate CLINs for different training modules or courses, each with its own description, duration, and price.
3. Equipment Delivery: A contract for equipment procurement might have individual CLINs for each type of equipment being delivered, detailing the specifications, quantity, and delivery schedule.