Subpart 16.5 - Indefinite-Delivery Contracts

Parent topic: Part 16 - Types of Contracts

16.500 Scope of subpart.

(a) This subpart prescribes policies and procedures for making awards of indefinite-delivery

contracts and establishes a preference for making multiple awards of indefinite-quantity contracts.

(b) This subpart does not limit the use of other than competitive procedures authorized by part 6.

(c) Nothing in this subpart restricts the authority of the General Services Administration (GSA) to

enter into schedule, multiple award, or task or delivery order contracts under any other provision of

law. Therefore, GSA regulations and the coverage for the Federal Supply Schedule program in

subpart 8.4 and part 38 take precedence over this subpart.

(d) The statutory multiple award preference implemented by this subpart does not apply to architectengineer contracts subject to the procedures in subpart 36.6. However, agencies are not precluded

from making multiple awards for architect-engineer services using the procedures in this subpart,

provided the selection of contractors and placement of orders are consistent with subpart 36.6.

(e) See subpart 19.5 for procedures to set aside part or parts of multiple-award contracts for small

businesses; to reserve one or more awards for small business on multiple-award contracts; and to

set aside orders for small businesses under multiple-award contracts.

16.501 [Reserved]

16.501-1 Definitions.

As used in this subpartDelivery-order contract means a contract for supplies that does not procure or specify a firm

quantity of supplies (other than a minimum or maximum quantity) and that provides for the issuance

of orders for the delivery of supplies during the period of the contract.

Task-order contract means a contract for services that does not procure or specify a firm quantity of

services (other than a minimum or maximum quantity) and that provides for the issuance of orders

for the performance of tasks during the period of the contract.

16.501-2 General.

(a) There are three types of indefinite-delivery contracts: definite-quantity contracts, requirements

contracts, and indefinite-quantity contracts. The appropriate type of indefinite-delivery contract may

be used to acquire supplies and/or services when the exact times and/or exact quantities of future

deliveries are not known at the time of contract award. Pursuant to 10 U.S.C. 3401 and 41 U.S.C.

4101, requirements contracts and indefinite-quantity contracts are also known as delivery-order
contracts or task-order contracts.

(b) The various types of indefinite-delivery contracts offer the following advantages:

(1) All three types permit-

(i) Government stocks to be maintained at minimum levels; and

(ii) Direct shipment to users.

(2) Indefinite-quantity contracts and requirements contracts also permit-

(i) Flexibility in both quantities and delivery scheduling; and

(ii) Ordering of supplies or services after requirements materialize.

(3) Indefinite-quantity contracts limit the Government’s obligation to the minimum quantity specified

in the contract.

(4) Requirements contracts may permit faster deliveries when production lead time is involved,

because contractors are usually willing to maintain limited stocks when the Government will obtain

all of its actual purchase requirements from the contractor.

(c) Indefinite-delivery contracts may provide for any appropriate cost or pricing arrangement under

part 16. Cost or pricing arrangements that provide for an estimated quantity of supplies or services

(e.g., estimated number of labor hours) must comply with the appropriate procedures of this

subpart.

16.502 Definite-quantity contracts.

(a) Description. A definite-quantity contract provides for delivery of a definite quantity of specific

supplies or services for a fixed period, with deliveries or performance to be scheduled at designated

locations upon order.

(b) Application. A definite-quantity contract may be used when it can be determined in advance that-

(1) A definite quantity of supplies or services will be required during the contract period; and

(2) The supplies or services are regularly available or will be available after a short lead time.

16.503 Requirements contracts.

(a) Description. A requirements contract provides for filling all actual purchase requirements of

designated Government activities for supplies or services during a specified contract period (from

one contractor), with deliveries or performance to be scheduled by placing orders with the

contractor.

(1) For the information of offerors and contractors, the contracting officer shall state a realistic

estimated total quantity in the solicitation and resulting contract. This estimate is not a
representation to an offeror or contractor that the estimated quantity will be required or ordered, or

that conditions affecting requirements will be stable or normal. The contracting officer may obtain

the estimate from records of previous requirements and consumption, or by other means, and should

base the estimate on the most current information available.

(2) The contract shall state, if feasible, the maximum limit of the contractor’s obligation to deliver

and the Government’s obligation to order. The contract may also specify maximum or minimum

quantities that the Government may order under each individual order and the maximum that it may

order during a specified period of time.

(b) Application.

(1) A requirements contract may be appropriate for acquiring any supplies or services when the

Government anticipates recurring requirements but cannot predetermine the precise quantities of

supplies or services that designated Government activities will need during a definite period.

(2) No requirements contract in an amount estimated to exceed $100 million (including all options)

may be awarded to a single source unless a determination is executed in accordance with

16.504(c)(1)(ii)(D).

(c) Government property furnished for repair. When a requirements contract is used to acquire work

(e.g., repair, modification, or overhaul) on existing items of Government property, the contracting

officer shall specify in the Schedule that failure of the Government to furnish such items in the

amounts or quantities described in the Schedule as "estimated" or "maximum" will not entitle the

contractor to any equitable adjustment in price under the Government Property clause of the

contract.

(d) Limitations on use of requirements contracts for advisory and assistance services.

(1) Except as provided in paragraph (d)(2) of this section, no solicitation for a requirements contract

for advisory and assistance services in excess of three years and $15 million (including all options)

may be issued unless the contracting officer or other official designated by the head of the agency

determines in writing that the services required are so unique or highly specialized that it is not

practicable to make multiple awards using the procedures in 16.504.

(2) The limitation in paragraph (d)(1) of this section is not applicable to an acquisition of supplies or

services that includes the acquisition of advisory and assistance services, if the contracting officer or

other official designated by the head of the agency determines that the advisory and assistance

services are necessarily incident to, and not a significant component of, the contract.

16.504 Indefinite-quantity contracts.

(a) Description. An indefinite-quantity contract provides for an indefinite quantity, within stated

limits, of supplies or services during a fixed period. The Government places orders for individual

requirements. Quantity limits may be stated as number of units or as dollar values.

(1) The contract must require the Government to order and the contractor to furnish at least a stated

minimum quantity of supplies or services. In addition, if ordered, the contractor must furnish any

additional quantities, not to exceed the stated maximum. The contracting officer should establish a
reasonable maximum quantity based on market research, trends on recent contracts for similar

supplies or services, survey of potential users, or any other rational basis.

(2) To ensure that the contract is binding, the minimum quantity must be more than a nominal

quantity, but it should not exceed the amount that the Government is fairly certain to order.

(3) The contract may also specify maximum or minimum quantities that the Government may order

under each task or delivery order and the maximum that it may order during a specific period of

time.

(4) A solicitation and contract for an indefinite quantity must-

(i) Specify the period of the contract, including the number of options and the period for which the

Government may extend the contract under each option;

(ii) Specify the total minimum and maximum quantity of supplies or services the Government will

acquire under the contract;

(iii) Include a statement of work, specifications, or other description, that reasonably describes the

general scope, nature, complexity, and purpose of the supplies or services the Government will

acquire under the contract in a manner that will enable a prospective offeror to decide whether to

submit an offer;

(iv) State the procedures that the Government will use in issuing orders, including the ordering

media, and, if multiple awards may be made, state the procedures and selection criteria that the

Government will use to provide awardees a fair opportunity to be considered for each order (see

16.505(b)(1));

(v) Include a description of the activities authorized to issue orders; and

(vi) Include authorization for placing oral orders, if appropriate, provided that the Government has

established procedures for obligating funds and that oral orders are confirmed in writing.

(b) Application. Contracting officers may use an indefinite-quantity contract when the Government

cannot predetermine, above a specified minimum, the precise quantities of supplies or services that

the Government will require during the contract period, and it is inadvisable for the Government to

commit itself for more than a minimum quantity. The contracting officer should use an indefinitequantity contract only when a recurring need is anticipated.

(c) Multiple award preference-

(1) Planning the acquisition.

(i) Except for indefinite-quantity contracts for advisory and assistance services as provided in

paragraph (c)(2) of this section, the contracting officer must, to the maximum extent practicable,

give preference to making multiple awards of indefinite-quantity contracts under a single solicitation

for the same or similar supplies or services to two or more sources.

(ii)

(A) The contracting officer must determine whether multiple awards are appropriate as part of

acquisition planning. The contracting officer must avoid situations in which awardees specialize
exclusively in one or a few areas within the statement of work, thus creating the likelihood that

orders in those areas will be awarded on a sole-source basis; however, each awardee need not be

capable of performing every requirement as well as any other awardee under the contracts. The

contracting officer should consider the following when determining the number of contracts to be

awarded:

(1) The scope and complexity of the contract requirement.

(2) The expected duration and frequency of task or delivery orders.

(3) The mix of resources a contractor must have to perform expected task or delivery order

requirements.

(4) The ability to maintain competition among the awardees throughout the contracts’ period of

performance.

(B) The contracting officer must not use the multiple award approach if-

(1) Only one contractor is capable of providing performance at the level of quality required because

the supplies or services are unique or highly specialized;

(2) Based on the contracting officer’s knowledge of the market, more favorable terms and

conditions, including pricing, will be provided if a single award is made;

(3) The expected cost of administration of multiple contracts outweighs the expected benefits of

making multiple awards;

(4) The projected task orders are so integrally related that only a single contractor can reasonably

perform the work;

(5) The total estimated value of the contract is at or below the simplified acquisition threshold; or

(6) Multiple awards would not be in the best interests of the Government.

(C) The contracting officer must document the decision whether or not to use multiple awards in the

acquisition plan or contract file. The contracting officer may determine that a class of acquisitions is

not appropriate for multiple awards (see subpart 1.7).

(D)

(1) No task or delivery order contract in an amount estimated to exceed $100 million (including all

options) may be awarded to a single source unless the head of the agency determines in writing that-

(i) The task or delivery orders expected under the contract are so integrally related that only a single

source can reasonably perform the work;

(ii) The contract provides only for firm-fixed price (see 16.202) task or delivery orders for-

(A) Products for which unit prices are established in the contract; or

(B) Services for which prices are established in the contract for the specific tasks to be performed;

(iii) Only one source is qualified and capable of performing the work at a reasonable price to the
Government; or

(iv) It is necessary in the public interest to award the contract to a single source due to exceptional

circumstances.

(2) The head of the agency must notify Congress within 30 days after any determination under

paragraph (c)(1)(ii)(D)(1)(iv) of this section.

(3) The requirement for a determination for a single-award contract greater than $100 million-

(i) Is in addition to any applicable requirements of subpart 6.3; and

(ii) Is not applicable for architect-engineer services awarded pursuant to subpart 36.6.

(2) Contracts for advisory and assistance services.

(i) Except as provided in paragraph (c)(2)(ii) of this section, if an indefinite-quantity contract for

advisory and assistance services exceeds 3 years and $15 million, including all options, the

contracting officer must make multiple awards unless-

(A) The contracting officer or other official designated by the head of the agency determines in

writing, as part of acquisition planning, that multiple awards are not practicable. The contracting

officer or other official must determine that only one contractor can reasonably perform the work

because either the scope of work is unique or highly specialized or the tasks so integrally related;

(B) The contracting officer or other official designated by the head of the agency determines in

writing, after the evaluation of offers, that only one offeror is capable of providing the services

required at the level of quality required; or

(C) Only one offer is received.

(ii) The requirements of paragraph (c)(2)(i) of this section do not apply if the contracting officer or

other official designated by the head of the agency determines that the advisory and assistance

services are incidental and not a significant component of the contract.

16.505 Ordering.

(a) General.

(1) In general, the contracting officer does not synopsize orders under indefinite-delivery contracts;

except see 16.505(a)(4) and (11), and 16.505(b)(2)(ii)(D).

(2) Individual orders shall clearly describe all services to be performed or supplies to be delivered so

the full cost or price for the performance of the work can be established when the order is placed.

Orders shall be within the scope, issued within the period of performance, and be within the

maximum value of the contract.

(3) Performance-based acquisition methods must be used to the maximum extent practicable, if the

contract or order is for services (see 37.102(a) and subpart 37.6).
(4) The following requirements apply when procuring items peculiar to one manufacturer:

(i) The contracting officer must justify restricting consideration to an item peculiar to one

manufacturer (e.g., a particular brand-name, product, or a feature of a product that is peculiar to

one manufacturer). A brand-name item, even if available on more than one contract, is an item

peculiar to one manufacturer. Brand-name specifications shall not be used unless the particular

brand-name, product, or feature is essential to the Government’s requirements and market research

indicates other companies’ similar products, or products lacking the particular feature, do not meet,

or cannot be modified to meet, the agency’s needs.

(ii) Requirements for use of items peculiar to one manufacturer shall be justified and approved using

the format(s) and requirements from paragraphs (b)(2)(ii)(A), (B), and (C) of this section, modified to

show the brand-name justification. A justification is required unless a justification covering the

requirements in the order was previously approved for the contract in accordance with 6.302-1(c) or

unless the base contract is a single-award contract awarded under full and open competition.

Justifications for the use of brand-name specifications must be completed and approved at the time

the requirement for a brand-name is determined.

(iii)

(A) For an order in excess of $30,000, the contracting officer shall—

(1) Post the justification and supporting documentation on the agency website used (if any) to solicit

offers for orders under the contract; or

(2) Provide the justification and supporting documentation along with the solicitation to all contract

awardees.

(B) The justifications for brand-name acquisitions may apply to the portion of the acquisition

requiring the brand-name item. If the justification is to cover only the portion of the acquisition

which is brand-name, then it should so state; the approval level requirements will then only apply to

that portion.

(C) The requirements in paragraph (a)(4)(iii)(A) of this section do not apply when disclosure would

compromise the national security (e.g., would result in disclosure of classified information) or create

other security risks.

(D) The justification is subject to the screening requirement in paragraph (b)(2)(ii)(D)(4) of this

section.

(5) When acquiring information technology and related services, consider the use of modular

contracting to reduce program risk (see 39.103(a)).

(6) Orders may be placed by using any medium specified in the contract.

(7) Orders placed under indefinite-delivery contracts must contain the following information:

(i) Date of order.

(ii) Contract number and order number.

(iii) For supplies and services, line item number, subline item number (if applicable), description,
quantity, and unit price or estimated cost and fee (as applicable). The corresponding line item

number and subline item number from the base contract shall also be included.

(iv) Delivery or performance schedule.

(v) Place of delivery or performance (including consignee).

(vi) Any packaging, packing, and shipping instructions.

(vii) Accounting and appropriation data.

(viii) Method of payment and payment office, if not specified in the contract (see 32.1110(e)).

(ix) North American Industry Classification System code (see 19.102(b)(3)).

(8) Orders placed under a task-order contract or delivery-order contract awarded by another agency

(i.e.,a Governmentwide acquisition contract, or multi-agency contract)—

(i) Are not exempt from the development of acquisition plans (see subpart 7.1), and an information

technology acquisition strategy (see part 39);

(ii) May not be used to circumvent conditions and limitations imposed on the use of funds (e.g., 31

U.S.C.1501(a)(1)); and

(iii) Shall comply with all FAR requirements for a consolidated or bundled contract when the order

meets the definition at 2.101(b) of "consolidation" or "bundling".

(9) In accordance with section 1427(b) of Public Law 108-136 (40 U.S.C. 1103 note), orders placed

under multi-agency contracts for services that substantially or to a dominant extent specify

performance of architect-engineer services, as defined in 2.101, shall—

(i) Be awarded using the procedures at subpart 36.6; and

(ii) Require the direct supervision of a professional architect or engineer licensed, registered or

certified in the State, Federal District, or outlying area, in which the services are to be performed.

(10)

(i) No protest under subpart 33.1 is authorized in connection with the issuance or proposed issuance

of an order under a task-order contract or delivery-order contract, except—

(A) A protest on the grounds that the order increases the scope, period, or maximum value of the

contract; or

(B)

(1) For agencies other than DoD, NASA, and the Coast Guard, a protest of an order valued in excess

of $10 million (41 U.S.C. 4106(f)); or

(2) For DoD, NASA, or the Coast Guard, a protest of an order valued in excess of $25 million (10

U.S.C. 3406(f)).
(ii) Protests of orders in excess of the thresholds stated in 16.505(a)(10)(i)(B) may only be filed with

the Government Accountability Office, in accordance with the procedures at 33.104.

(iii) For protests of small business size status for set-aside orders, see 19.302.

(11) Publicize orders funded in whole or in part by the American Recovery and Reinvestment Act of

2009 (Pub. L. 111-5) as follows:

(i) Notices of proposed orders shall follow the procedures in 5.704 for posting orders.

(ii) Award notices for orders shall follow the procedures in 5.705.

(12) When using the Governmentwide commercial purchase card as a method of payment, orders at

or below the micro-purchase threshold are exempt from verification in the System for Award

Management as to whether the contractor has a delinquent debt subject to collection under the

Treasury Offset Program (TOP).

(b) Orders under multiple-award contracts—

(1) Fair opportunity.

(i) The contracting officer must provide each awardee a fair opportunity to be considered for each

order exceeding the micro-purchase threshold issued under multiple delivery-order contracts or

multiple task-order contracts, except—

(A) As provided for in paragraph (b)(2) of this section; or

(B) Orders issued under 19.504(c)(1)(ii).

(ii) The contracting officer may exercise broad discretion in developing appropriate order placement

procedures. The contracting officer should keep submission requirements to a minimum.

Contracting officers may use streamlined procedures, including oral presentations. If the order does

not exceed the simplified acquisition threshold, the contracting officer need not contact each of the

multiple awardees under the contract before selecting an order awardee if the contracting officer

has information available to ensure that each awardee is provided a fair opportunity to be

considered for each order. The competition requirements in part 6 and the policies in subpart 15.3

do not apply to the ordering process. However, the contracting officer shall—

(A) Develop placement procedures that will provide each awardee a fair opportunity to be

considered for each order and that reflect the requirement and other aspects of the contracting

environment;

(B) Not use any method (such as allocation or designation of any preferred awardee) that would not

result in fair consideration being given to all awardees prior to placing each order;

(C) Tailor the procedures to each acquisition;

(D) Include the procedures in the solicitation and the contract;

(E) Consider price or cost under each order as one of the factors in the selection decision;

(F)Except for DoD, ensure the criteria at 15.101-2(c)(1)-(5) are met when using the lowest price

technically acceptable source selection process; and
(G)Except for DoD, avoid using the lowest price technically acceptable source selection process to

acquire certain supplies and services in accordance with 15.101-2(d).

(iii) Orders exceeding the simplified acquisition threshold.

(A) Each order exceeding the simplified acquisition threshold shall be placed on a competitive basis

in accordance with paragraph (b)(1)(iii)(B) of this section, unless supported by a written

determination that one of the circumstances described at 16.505(b)(2)(i) applies to the order and the

requirement is waived on the basis of a justification that is prepared in accordance with

16.505(b)(2)(ii)(B);

(B) The contracting officer shall—

(1) Provide a fair notice of the intent to make a purchase, including a clear description of the

supplies to be delivered or the services to be performed and the basis upon which the selection will

be made to all contractors offering the required supplies or services under the multiple-award

contract; and

(2) Afford all contractors responding to the notice a fair opportunity to submit an offer and have that

offer fairly considered.

(iv) Orders exceeding $6 million. For task or delivery orders in excess of $6 million, the requirement

to provide all awardees a fair opportunity to be considered for each order shall include, at a

minimum—

(A) A notice of the task or delivery order that includes a clear statement of the agency’s

requirements;

(B) A reasonable response period;

(C) Disclosure of the significant factors and subfactors, including cost or price, that the agency

expects to consider in evaluating proposals, and their relative importance;

(D) Where award is made on a best value basis, a written statement documenting the basis for award

and the relative importance of quality and price or cost factors; and

(E) An opportunity for a postaward debriefing in accordance with paragraph (b)(6) of this section.

(v) The contracting officer should consider the following when developing the procedures:

(A)

(1) Past performance on earlier orders under the contract, including quality, timeliness and cost

control.

(2) Potential impact on other orders placed with the contractor.

(3) Minimum order requirements.

(4) The amount of time contractors need to make informed business decisions on whether to respond

to potential orders.
(5) Whether contractors could be encouraged to respond to potential orders by outreach efforts to

promote exchanges of information, such as—

(i) Seeking comments from two or more contractors on draft statements of work;

(ii) Using a multiphased approach when effort required to respond to a potential order may be

resource intensive (e.g., requirements are complex or need continued development), where all

contractors are initially considered on price considerations (e.g., rough estimates), and other

considerations as appropriate (e.g.,proposed conceptual approach, past performance). The

contractors most likely to submit the highest value solutions are then selected for one-on-one

sessions with the Government to increase their understanding of the requirements, provide

suggestions for refining requirements, and discuss risk reduction measures.

(B) Formal evaluation plans or scoring of quotes or offers are not required.

(2) Exceptions to the fair opportunity process.

(i) The contracting officer shall give every awardee a fair opportunity to be considered for a delivery

order or task order exceeding the micro-purchase threshold unless one of the following statutory

exceptions applies:

(A) The agency need for the supplies or services is so urgent that providing a fair opportunity would

result in unacceptable delays.

(B) Only one awardee is capable of providing the supplies or services required at the level of quality

required because the supplies or services ordered are unique or highly specialized.

(C) The order must be issued on a sole-source basis in the interest of economy and efficiency

because it is a logical follow-on to an order already issued under the contract, provided that all

awardees were given a fair opportunity to be considered for the original order.

(D) It is necessary to place an order to satisfy a minimum guarantee.

(E) For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or

requires that the purchase be made from a specified source.

(F) In accordance with section 1331 of Public Law 111-240 (15 U.S.C. 644(r)), contracting officers

may, at their discretion, set aside orders for any of the small business concerns identified in

19.000(a)(3). When setting aside orders for small business concerns, the specific small business

program eligibility requirements identified in part 19 apply.

(G) For DoD, NASA, and the Coast Guard, the order satisfies one of the exceptions permitting the

use of other than full and open competition listed in 6.302 (10 U.S.C. 3406(c)(5)). The public interest

exception shall not be used unless Congress is notified in accordance with 10 U.S.C. 3204(a)(7).

(ii) The justification for an exception to fair opportunity shall be in writing as specified in paragraph

(b)(2)(ii)(A) or (B) of this section. No justification is needed for the exception described in paragraph

(b)(2)(i)(F) of this section.

(A) Orders exceeding the micro-purchase threshold, but not exceeding the simplified acquisition

threshold. The contracting officer shall document the basis for using an exception to the fair

opportunity process. If the contracting officer uses the logical follow-on exception, the rationale shall
describe why the relationship between the initial order and the follow-on is logical (e.g., in terms of

scope, period of performance, or value).

(B) Orders exceeding the simplified acquisition threshold. As a minimum, each justification shall

include the following information and be approved in accordance with paragraph (b)(2)(ii)(C) of this

section:

(1) Identification of the agency and the contracting activity, and specific identification of the

document as a "Justification for an Exception to Fair Opportunity."

(2) Nature and/or description of the action being approved.

(3) A description of the supplies or services required to meet the agency’s needs (including the

estimated value).

(4) Identification of the exception to fair opportunity (see 16.505(b)(2)) and the supporting rationale,

including a demonstration that the proposed contractor’s unique qualifications or the nature of the

acquisition requires use of the exception cited. If the contracting officer uses the logical follow-on

exception, the rationale shall describe why the relationship between the initial order and the followon is logical (e.g., in terms of scope, period of performance, or value).

(5) A determination by the contracting officer that the anticipated cost to the Government will be

fair and reasonable.

(6) Any other facts supporting the justification.

(7) A statement of the actions, if any, the agency may take to remove or overcome any barriers that

led to the exception to fair opportunity before any subsequent acquisition for the supplies or services

is made.

(8) The contracting officer’s certification that the justification is accurate and complete to the best of

the contracting officer’s knowledge and belief.

(9) Evidence that any supporting data that is the responsibility of technical or requirements

personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for

an exception to fair opportunity) and which form a basis for the justification have been certified as

complete and accurate by the technical or requirements personnel.

(10) A written determination by the approving official that one of the circumstances in paragraphs

(b)(2)(i)(A) through (E) and (G) of this section applies to the order.

(C) Approval.

(1) For proposed orders exceeding the simplified acquisition threshold, but not exceeding $750,000,

the ordering activity contracting officer’s certification that the justification is accurate and complete

to the best of the ordering activity contracting officer’s knowledge and belief will serve as approval,

unless a higher approval level is established in accordance with agency procedures.

(2) For a proposed order exceeding $750,000, but not exceeding $15 million, the justification must

be approved by the advocate for competition of the activity placing the order, or by an official named

in paragraph (b)(2)(ii)(C)(3) or (4) of this section. This authority is not delegable.
(3) For a proposed order exceeding $15 million, but not exceeding $75 million (or, for DoD, NASA,

and the Coast Guard, not exceeding $100 million), the justification must be approved by—

(i) The head of the procuring activity placing the order;

(ii) A designee who—

(A) If a member of the armed forces, is a general or flag officer;

(B) If a civilian, is serving in a position in a grade above GS-15 under the General Schedule (or in a

comparable or higher position under another schedule); or

(iii) An official named in paragraph (b)(2)(ii)(C)(4)of this section.

(4) For a proposed order exceeding $75 million (or, for DoD, NASA, and the Coast Guard, over $100

million), the justification must be approved by the senior procurement executive of the agency

placing the order. This authority is not delegable, except in the case of the Under Secretary of

Defense for Acquisition and Sustainment, acting as the senior procurement executive for the

Department of Defense.

(D) Posting.

(1) Except as provided in paragraph (b)(2)(ii)(D)(5) of this section, within 14 days after placing an

order exceeding the simplified acquisition threshold that does not provide for fair opportunity in

accordance with 16.505(b), the contract officer shall—

(i) Publish a notice in accordance with 5.301; and

(ii) Make publicly available the justification required at of this section.

(2) The justification shall be made publicly available—

(i) At the GPE https://www.sam.gov;

(ii) On the Web site of the agency, which may provide access to the justifications by linking to the

GPE; and

(iii) Must remain posted for a minimum of 30 days.

(3) In the case of an order permitted under paragraph (b)(2)(i)(A) of this section, the justification

shall be posted within 30 days after award of the order.

(4) Contracting officers shall carefully screen all justifications for contractor proprietary data and

remove all such data, and such references and citations as are necessary to protect the proprietary

data, before making the justifications available for public inspection. Contracting officers shall also

be guided by the exemptions to disclosure of information contained in the Freedom of Information

Act (5 U.S.C.552) and the prohibitions against disclosure in 24.202 in determining whether other

data should be removed. Although the submitter notice process set out in Executive Order 12600

"Predisclosure Notification Procedures for Confidential Commercial Information" does not apply, if

the justification appears to contain proprietary data, the contracting officer should provide the

contractor that submitted the information an opportunity to review the justification for proprietary

data before making the justification available for public inspection, redacted as necessary. This

process must not prevent or delay the posting of the justification in accordance with the timeframes
required in paragraphs (b)(2)(ii)(D)(1) and (3) of this section.

(5) The posting requirement of this section does not apply—

(i) When disclosure would compromise the national security (e.g., would result in disclosure of

classified information) or create other security risks; or

(ii) To a small business set-aside under paragraph (b)(2)(i)(F)

(3) Pricing orders. If the contract did not establish the price for the supply or service, the

contracting officer must establish prices for each order using the policies and methods in subpart

15.4.

(4) Cost reimbursement orders. For additional requirements for cost-reimbursement orders, see

16.301-3.

(5) Time-and-materials or labor-hour orders. For additional requirements for time-and-materials or

labor-hour orders, see 16.601(e).

(6) Postaward Notices and debriefing of awardees for orders exceeding $6 million.The contracting

officer shall notify unsuccessful awardees when the total price of a task or delivery order exceeds $6

million.

(i) The procedures at 15.503(b)(1) shall be followed when providing postaward notification to

unsuccessful awardees.

(ii) The procedures at 15.506 shall be followed when providing postaward debriefing to unsuccessful

awardees.

(iii) A summary of the debriefing shall be included in the task or delivery order file.

(7) Decision documentation for orders.

(i) The contracting officer shall document in the contract file the rationale for placement and price of

each order, including the basis for award and the rationale for any tradeoffs among cost or price and

non-cost considerations in making the award decision. This documentation need not quantify the

tradeoffs that led to the decision.

(ii) The contract file shall also identify the basis for using an exception to the fair opportunity

process (see paragraph (b)(2) of this section).

(iii)Except for DoD, the contracting officer shall document in the contract file a justification for use

of the lowest price technically acceptable source selection process, when applicable.

(8) Task-order and delivery-order ombudsman. The head of the agency shall designate a task-order

and delivery-order ombudsman. The ombudsman must review complaints from contractors and

ensure they are afforded a fair opportunity to be considered, consistent with the procedures in the

contract. The ombudsman must be a senior agency official who is independent of the contracting

officer and may be the agency’s advocate for competition.

(9) Small business.The contracting officer should rely on the small business representations at the

contract level (but see section 19.301-2(b)(2) for order rerepresentations).
(c) Limitation on ordering period for task-order contracts for advisory and assistance services.

(1) Except as provided for in paragraphs (c)(2) and (3) of this section, the ordering period of a taskorder contract for advisory and assistance services, including all options or modifications, normally

may not exceed 5 years.

(2) The 5-year limitation does not apply when—

(i) A longer ordering period is specifically authorized by a statute; or

(ii) The contract is for an acquisition of supplies or services that includes the acquisition of advisory

and assistance services and the contracting officer, or other official designated by the head of the

agency, determines that the advisory and assistance services are incidental and not a significant

component of the contract.

(3) The contracting officer may extend the contract on a sole-source basis only once for a period not

to exceed 6 months if the contracting officer, or other official designated by the head of the agency,

determines that—

(i) The award of a follow-on contract is delayed by circumstances that were not reasonably

foreseeable at the time the initial contract was entered into; and

(ii) The extension is necessary to ensure continuity of services, pending the award of the follow-on

contract.

16.506 Solicitation provisions and contract clauses.

(a) Insert the clause at 52.216-18, Ordering, in solicitations and contracts when a definite-quantity

contract, a requirements contract, or an indefinite-quantity contract is contemplated.

(b) Insert a clause substantially the same as the clause at 52.216-19, Order Limitations, in

solicitations and contracts when a definite-quantity contract, a requirements contract, or an

indefinite-quantity contract is contemplated.

(c) Insert the clause at 52.216-20, Definite Quantity, in solicitations and contracts when a definitequantity contract is contemplated.

(d)

(1) Insert the clause at 52.216-21, Requirements, in solicitations and contracts when a requirements

contract is contemplated.

(2) If the contract is for nonpersonal services and related supplies and covers estimated

requirements that exceed a specific Government activity’s internal capability to produce or perform,

use the clause with its Alternate I.

(3) If the contract includes subsistence for both Government use and resale in the same Schedule,

and similar products may be acquired on a brand-name basis, use the clause with its Alternate II

(but see paragraph (d)(5) of this section).
(4) If the contract involves a partial small business set-aside, use the clause with its Alternate III (but

see paragraph (d)(5) of this section).

(5) If the contract-

(i) Includes subsistence for Government use and resale in the same schedule and similar products

may be acquired on a brand-name basis; and

(ii) Involves a partial small business set-aside, use the clause with its Alternate IV.

(e) Insert the clause at 52.216-22, Indefinite Quantity, in solicitations and contracts when an

indefinite-quantity contract is contemplated.

(f) Insert the provision at 52.216-27, Single or Multiple Awards, in solicitations for indefinitequantity contracts that may result in multiple contract awards. Modify the provision to specify the

estimated number of awards. Do not use this provision for advisory and assistance services contracts

that exceed 3 years and $15 million (including all options).

(g) Insert the provision at 52.216-28, Multiple Awards for Advisory and Assistance Services, in

solicitations for task-order contracts for advisory and assistance services that exceed 3 years and

$15 million (including all options), unless a determination has been made under 16.504(c)(2)(i)(A).

Modify the provision to specify the estimated number of awards.

(h) See 10.001(d) for insertion of the clause at 52.210-1, Market Research, when the contract is over

$6 million for the procurement of items other than commercial products or commercial services.

(i) See 7.107-6 for use of 52.207-6, Solicitation of Offers from Small Business Concerns and Small

Business Teaming Arrangement or Joint Ventures (Multiple-Award Contracts) in solicitations for

multiple-award contracts above the substantial bundling threshold of the agency.

(j) Insert the clause at 52.216-32, Task-Order and Delivery-Order Ombudsman, in solicitations and

contracts when a multiple-award indefinite-delivery indefinite-quantity contract is contemplated.

Use the clause with its Alternate I when the contract will be available for use by multiple agencies

(e.g., Governmentwide acquisition contracts or multi-agency contracts). When placing orders under

the multiple-award contract available for use by multiple agencies, the ordering activity's

contracting officer shall complete paragraph (d)(2) and include Alternate I in the notice of intent to

place an order, and in the resulting order.