204.7104-1 Criteria for establishing.

Contract subline items provide flexibility to further identify elements within a contract line item for

tracking performance or simplifying administration. There are only two kinds of subline items: those

which are informational in nature and those which consist of more than one item that requires

separate identification.

(a) Informational subline items.

(1) This type of subline item identifies information that relates directly to the contract line item and

is an integral part of it (e.g., parts of an assembly or parts of a kit). These subline items shall not be

scheduled separately for delivery, identified separately for shipment or performance, or priced

separately for payment purposes.

(2) The informational subline item may include quantities, prices, or amounts, if necessary to satisfy

management requirements. However, these elements shall be included within the item description in

the supplies/services column and enclosed in parentheses to prevent confusing them with quantities,

prices, or amounts that have contractual significance. Do not enter these elements in the quantity

and price columns.

(3) Informational subline items shall be used to identify each accounting classification citation

assigned to a single contract line item number when use of multiple citations is authorized (see

204.7103-1 (a)(4)(ii)).

(b) Separately identified subline items.

(1) Subline items will be used instead of contract line items to facilitate payment, delivery tracking,

contract funds accounting, or other management purposes. Such subline items shall be used when

items bought under one contract line item number—

(i) Are to be paid for from more than one accounting classification. A subline item shall be

established for the quantity associated with the single accounting classification citation. Establish a

line item rather than a subline item if it is likely that a subline item may be assigned additional

accounting classification citations at a later date. Identify the funding as described in 204.7104-1

(a)(3);

(ii) Are to be packaged in different sizes, each represented by its own NSN;

(iii) Have collateral costs, such as packaging costs, but those costs are not a part of the unit price of

the contract line item;

(iv) Have different delivery dates or destinations or requisitions, or a combination of the three; or

(v) Identify parts of an assembly or kit which—

(A) Have to be separately identified at the time of shipment or performance; and

(B) Are separately priced.

(2) Each separately identified contract subline item shall have its own—
(i) Delivery schedule, period of performance, or completion date;

(ii) Unit price or single total price or amount (not separately priced (NSP) is acceptable as an entry

for price or amount if the price is included in another subline item or a different contract line item).

This requirement does not apply—

(A) If the subline item was created to refer to an exhibit or an attachment. If management needs

dictate that a unit price be entered, the price shall be set forth in the item description block of the

schedule and enclosed in parentheses; or

(B) In the case of indefinite delivery contracts described at 204.7103-1 (a)(1)(vi).

(iii) Identification (e.g., NSN, item description, manufacturer's part number, scope of work,

description of services).

(3) Unit prices and extended amounts.

(i) The unit price and total amount for all subline items may be entered at the contract line item

number level if the unit price for the subline items is identical. If there is any variation, the subline

item unit prices shall be entered at the subline item level only.

(ii) The unit price and extended amounts may be entered at the subline items level.

(iii) The two methods in paragraphs (b)(3)(i) and (ii) of this section shall not be combined in a

contract line item.

(iv) When the price for items not separately priced is included in the price of another contract line or

subline item, it may be necessary to withhold payment on the priced contract line or subline item

until the included line or subline items that are not separately priced have been delivered. See the

clause at 252.204-7002 , Payment for Contract Line or Subline Items Not Separately Priced.

Parent topic: 204.7104 Contract subline items.