Subpart 11.7 - Variation in Quantity

Parent topic: Part 11 - Describing Agency Needs

11.701 Supply contracts.

(a) A fixed-price supply contract may authorize Government acceptance of a variation in the quantity

of items called for if the variation is caused by conditions of loading, shipping, or packing, or by

allowances in manufacturing processes. Any permissible variation shall be stated as a percentage

and it may be an increase, a decrease, or a combination of both; however, contracts for subsistence

items may use other applicable terms of variation in quantity.

(b) There should be no standard or usual variation percentage. The overrun or underrun permitted

in each contract should be based upon the normal commercial practices of a particular industry for a

particular item, and the permitted percentage should be no larger than is necessary to afford a

contractor reasonable protection. The permissible variation shall not exceed plus or minus 10

percent unless a different limitation is established in agency regulations. Consideration shall be

given to the quantity to which the percentage variation applies. For example, when delivery will be

made to multiple destinations and it is desired that the quantity variation apply to the item quantity

for each destination, this requirement must be stated in the contract.

(c) Contractors are responsible for delivery of the specified quantity of items in a fixed-price

contract, within allowable variations, if any. If a contractor delivers a quantity of items in excess of

the contract requirements plus any allowable variation in quantity, particularly small dollar value

overshipments, it results in unnecessary administrative costs to the Government in determining

disposition of the excess quantity. Accordingly, the contract may include the clause at 52.211-17,

Delivery of Excess Quantities, to provide that-

(1) Excess quantities of items totaling up to $250 in value may be retained without compensating the

contractor; and

(2) Excess quantities of items totaling over $250 in value may, at the Government’s option, be either

returned at the contractor’s expense or retained and paid for at the contract unit price.

11.702 Construction contracts.

Construction contracts may authorize a variation in estimated quantities of unit-priced items. When

the variation between the estimated quantity and the actual quantity of a unit-priced item is more

than plus or minus 15 percent, an equitable adjustment in the contract price shall be made upon the

demand of either the Government or the contractor. The contractor may request an extension of

time if the quantity variation is such as to cause an increase in the time necessary for completion.

The contracting officer must receive the request in writing within 10 days from the beginning of the

period of delay. However, the contracting officer may extend this time limit before the date of final

settlement of the contract. The contracting officer shall ascertain the facts and make any adjustment

for extending the completion date that the findings justify.
11.703 Contract clauses.

(a) The contracting officer shall insert the clause at 52.211-16, Variation in Quantity, in solicitations

and contracts, if authorizing a variation in quantity in fixed-price contracts for supplies or for

services that involve the furnishing of supplies.

(b) The contracting officer may insert the clause at 52.211-17, Delivery of Excess Quantities, in

solicitations and contracts when a fixed-price supply contract is contemplated.

(c) The contracting officer shall insert the clause at 52.211-18, Variation in Estimated Quantity, in

solicitations and contracts when a fixed-price construction contract is contemplated that authorizes

a variation in the estimated quantity of unit-priced items.