PGI 204.71 -UNIFORM CONTRACT LINE

ITEM NUMBERING SYSTEM

Parent topic: PGI Part 204 - ADMINISTRATIVE AND INFORMATION MATTERS

PGI 204.7103 Contract line items.

(a) Separately identifiable contract line and subline items (i.e., all except those with characteristics

described in DFARS 204.7103-1(a)(2)(iii) or 204.7104-1(a)) shall include a description of the item or

service being procured, the associated Product or Service Code (PSC), the quantity, a unit of

measure, defined acceptance and inspection locations and requirements, and the delivery schedule

or performance period. Contracts for contingency operations shall include the project code at the

line item level on each contract action. The list of applicable codes is maintained at

http://www.dla.mil/j-6/dlmso/elibrary/ServicePoints/CD_ProjCd_nopoc.docx. The contracting officer

is responsible for coordinating any changes from the purchase request to the contract with the

requiring activity.

(1) The list of active PSCs is available on the Federal Procurement Data System website under the

‘Worksite’ section under ‘Reference’.

(2) The list of available units of measure is on the Defense Pricing and Contracting website at

https://www.acq.osd.mil/asda/dpc/ce/ds/docs/pds/Line_Item_UoM_List.xlsx .

(3) Delivery and acceptance locations shall be defined using Activity Address Codes published in (1)

DoD Activity Address Directory (DODAAD), DoD 4000.25-6-M, or (2) Military Assistance Program

Address Directory System (MAPAD), DoD 4000.25-8-M and available for verification at

https://www.daas.dla.mil/daasinq/default.asp.

(4) No activity shall be assigned acceptance responsibility unless that activity has acceptors

registered in Wide Area WorkFlow (WAWF). Available roles for an Activity Address Code can be

verified at the Active DoDAACs & Roles link on the WAWF homepage at https://wawf.eb.mil/.

(b) Fixed price line items shall include unit prices and total prices. Cost type line items shall not

include unit prices, but shall contain the appropriate elements in accordance with FAR part 16. Not

separately priced line items shall be so labeled. The notation “No Charge” shall not be used.

(c) The requirements at paragraph (a) and (b) shall be included in the appropriate parts of the

contract Schedule.

(d) In structuring line items, especially on fixed-price contracts, due consideration shall be given to

the effect of the chosen units of measure on administration and payment. No contract line item shall

contain a quantity less than the number of deliveries anticipated on the line item. Contracting

officers shall consider the need for periodic deliveries and payments in selecting a unit of measure.

Included in this analysis shall be the impact of any financing arrangements under FAR part 32.

(i) Supplies: Line item quantities shall match the actual count of the supplies to be provided. For

instance, if more than one delivery is expected, the quantity cannot be “1.”

(ii) Services: Line item quantities shall match the frequency with which performance will be
reviewed, and on fixed-price line items, payment made. For example, a contract with a twelve-month

period of performance should have a quantity and unit of measure suited to how the contract will be

managed. If the intent is to review, accept, and pay for the services monthly, then the quantity

should be 12, with a unit of measure such as “Months” or “Lots.” If the intent is to review, accept,

and pay for the services quarterly, then the quantity should be 4, with a unit of measure such as

“Lot”. If the quantity used is 1, then no payment for delivery can occur until the end of the period of

performance. Services with tangible deliveries, such as repairs, shall be structured like supply line

items.

(e) The following examples illustrate when the requirements at paragraph (a) apply—

(1) Separately identifiable subline items. The rule applies to subline items 0001AA and 0001AB. It

does not apply to the line item 0001, because it does not have a deliverable.

ITEM NO. SUPPLIES/SERVICE QUANTITY UNIT UNIT PRICE AMOUNT

0001 Widgets

0001AA Red painted widgets 6 EA $10.00 $60.00

0001AB Unpainted widgets 6 EA $9.50 $57.00

(2) Informational subline items. The rule applies to line item 0001. It does not apply to subline items

000101, 000102, and 000103 because they do not have deliverables.

ITEM NO. SUPPLIES/SERVICE QUANTITY UNIT UNIT

PRICE AMOUNT

0001 Widget implementation

Joint Service Study 1 LOT $60,000 $60,000

000101 Army funding

(AA: $20,000)

000102 Navy funding

(AB: $20,000)

000103 Air Force funding

(AC: $20,000)

(3) Line item with no subline items. The rule applies.

ITEM NO. SUPPLIES/SERVICE QUANTITY UNIT UNIT PRICE AMOUNT
0001 Red painted widgets 6 EA $10.00 $60.00

(4) Line item is parent to an exhibit. The rule applies to the exhibit lines.

ITEM NO. SUPPLIES/SERVICE QUANTITY UNIT UNIT PRICE AMOUNT

0001 See exhibit A

($117.00)

A001 Red painted widgets 6 EA $10.00 $60.00

A002 Unpainted widgets 6 EA $9.50 $57.00

(5) Line is parent to a subline item which refers to an exhibit. The rule applies to the exhibit lines.

ITEM NO. SUPPLIES/SERVICE QUANTITY UNIT UNIT

PRICE AMOUNT

0001 Widget program

0001AA Design and develop

widgets 1 LOT $500.00 $500.00

0001AB See exhibit A

($117.00)

A001 Red painted widgets 6 EA $10.00 $60.00

A002 Unpainted widgets 6 EA $9.50 $57.00

PGI 204.7103-2 Numbering procedures.

(a) Contract line items shall consist of four numeric digits 0001 through 9999. Do not use numbers

beyond 9999. Within a given contract, the item numbers shall be sequential but need not be

consecutive.

(b) The contract line item number shall be the same as the solicitation line item number unless there

is a valid reason for using different numbers.

(c) Once a contract line item number has been assigned, it shall not be assigned to another,

different, contract line item in the same contract.
PGI 204.7104 Contract subline items.

PGI 204.7104-2 Numbering procedures.

(a) Number subline items by adding either two numeric characters or two alpha characters to the

basic contract line item number.

(1) Information subline item numbers. Use numeric characters only for information subline items,

running 01 through 99. Do not use spaces or special characters to separate the subline item number

from the contract line item number that is its root. For example, if the contract line item number is

0001, the first three subline items would be 000101, 000102, and 000103. Do not use a designation

more than once within a contract line item.

(2) Separately identified subline items. Use alpha characters only for separately identified subline

items, running AA through ZZ. Do not use spaces or special characters to separate the subline item

number from the contract line item number that is its root. For example, if the contract line item

number is 0001, the first three subline items would be 0001AA, 0001AB, and 0001AC.

(i) Do not use the letters I or O as alpha characters.

(ii) Use all 24 available alpha characters in the second position before selecting a different alpha

character for the first position. For example, AA, AB, AC, through AZ before beginning BA, BB, and

BC.

(b) Within a given contract line item, the subline item numbers shall be sequential but need not be

consecutive.

(c) Exhibits may be used as an alternative to setting forth in the schedule a long list of contract

subline items. If exhibits are used, create a contract subline item citing the exhibit's identifier. See

DFARS 204.7105.

(d) If a contract line item involves ancillary functions, like packaging and handling, transportation,

payment of state or local taxes, or use of reusable containers, and these functions are normally

performed by the contractor and the contractor is normally entitled to reimbursement for

performing these functions, do not establish a separate subline item solely to account for these

functions. However, do identify the functions in the contract schedule. If an offeror separately prices

these functions, the contracting officer may establish separate subline items for the functions;

however, the separate subline items must conform to the requirements of DFARS 204.7104-1.

(e) The following examples illustrate subline items numbering—

(1) Subline items structured to identify destinations for identical items, identically priced (delivery

schedule shall be established for each subline item, not the contract line item).

ITEM

NO. SUPPLIES/SERVICE QUANTITY UNIT UNITPRICE AMOUNT
0001

NSN 1615-00-591-6620

Shim, Aluminum Alloy,...

Apbl, Rotor, Helicopter

PRON A1-9-63821-M1-M1

ACRN:AA

0001AA

A3168R-9030-4025

A2537M IPD: 2 RDD: 334

PROJ: 501

10 EA $100.00 $1,000.00

0001AB

A3168R-9030-4026

A51AXBM IPD: 2 RDD: 325

PROJ: 502

10 EA $100.00 $1,000.00

0001AC

A3168R-9030-4027

A67KBCM IPD: 2 RDD: 349

PROJ: 503

15 EA $100.00 $1,500.00

(2) Subline items structured to identify destinations for identical items, not identically priced

(delivery schedule shall be established for each subline item, not the contract line item).

ITEM

NO. SUPPLIES/SERVICE QUANTITY UNIT UNITPRICE AMOUNT

0001

NSN 1615-00-591-6620

Shim, Aluminum Alloy,...

Apbl, Rotor, Helicopter

PRON A1-9-63821-M1-M1

ACRN:AA

0001AA

A3168R-9030-4025

A2537M IPD: 2 RDD: 334

PROJ: 501

10 EA $100.00 $1,000.00

0001AB

A3168R-9030-4026

A51AXBM IPD: 2 RDD: 325

PROJ: 502

20 EA $99.00 $1,980.00

0001AC

A3168R-9030-4027

A67KBCM IPD: 2 RDD: 349

PROJ: 503

30 EA $98.00 $2,940.00

NOTE: Difference in prices for identical items is due to separate destinations for FOB destination

delivery.

(3) Subline items structured to identify different sizes of an item that are identically priced (delivery

schedule shall be established for each subline item, not the contract line item).
ITEM NO. SUPPLIES/ SERVICE QUANTITY UNIT UNIT

PRICE AMOUNT

0013

Boots Insulated, Cold

Weather White, Type II,

Class 1

PR $38.35 $13,422.50

0013AA 8430-00-655-5541 Size

5N 50

0013AB 8430-00-655-5544 Size

8N 70

0013AC 8430-00-655-5551 Size

9N 30

0013AD 8430-00-655-5535 Size

9R 200

NOTE: Unit price and total amount shown at line item level rather than at subline item level.

(4) Subline items structured to identify different sizes of an item that are not identically priced

(delivery schedule shall be established for each subline item, not the contract line item).

ITEM

NO. SUPPLIES/ SERVICE QUANTITY UNIT UNITPRICE AMOUNT

0002

Body Armor Ground

Troops Variable Type

Small Arms,

Fragmentation

Protective Nylon Felt

Vest, Front and Back

Plates, Ceramic Plate,

Type I

0002AA First Article 1 LO NSP

0002AB

8470-00-141-0935

Medium

Regular

1936 SE $331.77 $642,306.72

0002AC 8470-00-141-0936 Large

Regular 625 SE $355.77 $222,356.25
0002AD

8470-00-141-0937,

Medium

Long

1237 SE $346.77 $428,954.49

0002AE

8470-00-141-0938,

Large

Long

804 SE $365.77 $294,079.08

(5) Subline items structured to provide the capability for relating subordinate separately priced

packaging costs to the overall contract line item. (Separate delivery schedules shall be established

for the subline item identifying the contractor's product and for the subline item identifying

packaging. No schedule will be established for the contract line item.)

ITEM

NO. SUPPLIES/ SERVICE QUANTITY UNIT UNITPRICE AMOUNT

0001

6105-00-635-6568 50380

Ref No 63504-WZ

Armature Motor ACRN:

AA

0001AA

6105-00-635-6568 50380

Ref No 63504-WZ

Armature Motor ACRN:

AA

2 EA $2,895.87 $5,791.74

0001AB Packaging ACRN:AA 2 EA $289.58 $579.16

(6) Subline items structured to identify different accounting classifications for identical items

(delivery schedule shall be established for each subline item, not the contract line item).

AJ: 17X150518350315069100000192B000000000000000000

AK: 17X150518370317569100000192B000000000000000000

AL: 17X150519350314369100000192B000000000000000000

ITEM NO. SUPPLIES/ SERVICE QUANTITY UNIT UNIT

PRICE AMOUNT

0002 Pulse Decoder

KY-312/A5Q-19 EA $3,037.40

0002AA

Pulse Decoder

KY-312/A5Q-19

ACRN: AJ

2 $6,074.80
0002AB

Pulse Decoder

KY-312/A5Q-19

ACRN: AK

6 $18,224.40

0002AC

Pulse Decoder

KY-312/A5Q-19

ACRN: AL

2 $6,074.80

NOTE: Unit price may be shown at line item level and total amounts shown at subline item level.

(7) Informational subline items established to identify multiple accounting classification citations

assigned to a single contract line item.

ITEM

NO. SUPPLIES/ SERVICE QUANTITY UNIT UNIT PRICE AMOUNT

0001 Air Vehicle 1 EA $6,700,000 $6,700,000

000101 ACRN:AA

$3,300,000

000102 ACRN:AB

$2,000,000

000103 ACRN:AC

$1,400,000

(8) Subline items structured to identify parts of an assembly (delivery schedule and price shall be

established for each identified part at the subline item level, not for the assembly at the contract line

item level).

ITEM NO. SUPPLIES/

SERVICE QUANTITY UNIT UNIT PRICE AMOUNT

0003

Automatic

Degausing System

Consisting of: (2 ea

@ $52,061;

$104,122 total)

0003AA Switchboard 2 EA $52,061.00 $104,122.00

0003AB Remote Control

Panel 2 EA NSP
0003AC

Power Supply (M

Coil) SSM Type 145

Amps, 220 V DC)

2 EA NSP

* * * * *

0003AF

Power Supply (A

Coil) SSM Type (118

Amps, 220 V DC)

2 EA NSP

(9) Subline items structured to identify parts of a kit (delivery schedule and price shall be

established for each identified part at the subline item level, not for the kit at the contract line item

level).

ITEM NO. SUPPLIES/

SERVICE QUANTITY UNIT UNIT PRICE AMOUNT

0031

Conversion Kit to

Convert Torpedo

MK 45 Mod 0 to

Torpedo MK 45 Mod

1

(50 Kt @

$10,868.52;

$543,426 total)

0031AA Integrator Assy LD

620106 50 EA $10,868.52 $543,426.00

0031AB Pulse Generator

Assy LD 587569 50 EA NSP

0031AC Drive Shaft Assy LD

587559 50 EA NSP

* * * *

0031BF Actual Panel Assy

LD 542924 50 EA NSP

NOTE: In this example, the prices of subline items 0031AB through 0031BF are included in the

Integrator Assembly.
PGI 204.7105 Contract exhibits and attachments.

(a) Use of exhibits.

(1) Exhibits may be used instead of putting a long list of contract line items or subline items in the

contract schedule. Exhibits are particularly useful in buying spare parts.

(2) When using exhibits, establish a contract line or subline item and refer to the exhibit.

(3) Identify exhibits individually.

(4) Each exhibit shall apply to only one contract line item or subline item.

(5) More than one exhibit may apply to a single contract line item.

(6) Data items on a DD Form 1423, Contract Data Requirements List, may be either separately

priced or not separately priced.

(i) Separately priced. When data are separately priced, enter the price in Section B of the contract.

(ii) Not separately priced. Include prices in a priced contract line item or subline item.

(7) The contracting officer may append attachments to exhibits, as long as the attachment does not

identify a deliverable requirement that has not been established by a contract line item or subline

item or exhibit line item.

(8) Include exhibit line items and associated information in the electronically distributed contract

documents identified in PGI 204.201 (3)(i)(A) and (B).

(b) Numbering exhibits and attachments.

(1) Use alpha characters to identify exhibits. The alpha characters shall be either single or double

capital letters. Do not use the letters I or O.

(2) Once an identifier has been assigned to an exhibit, do not use it on another exhibit in the same

contract.

(3) The identifier shall always appear in the first or first and second positions of all applicable exhibit

line item numbers.

(4) If the exhibit has more than one page, cite the procurement instrument identification number,

exhibit identifier, and applicable contract line or subline item number on each page.

(5) Use numbers to identify attachments.

(c) Numbering exhibit line items.

(1) Criteria for establishing. The criteria for establishing exhibit line items are the same as those for

establishing contract line items (see DFARS 204.7103).

(2) Procedures for numbering.

(i) Number items in an exhibit in a manner similar to contract line items.
(ii) Number line items using a four-position number.

(A) The first position or the first and second position contain the exhibit identifier.

(B) The third and fourth positions contain the alpha or numeric character serial numbers assigned to

the line item when using a double letter exhibit identifier. The second, third and fourth positions

contain the alpha or numeric character serial numbers assigned to the line item when using a single

letter exhibit identifier.

(iii) Exhibit line item numbers shall be sequential within the exhibit.

(3) Examples.

(i) Two-position serial number for double letter exhibit identifier.

Cumulative No. of Line Items Serial Number Sequence

1-33

34-67

68-101

102-135

136-169

170-203

204-237

238-271

272-305

306-339

340-373

374-407

408-441

442-475

476-509

510-543

544-577

578-611

612-645

646-679

680-713

714-747

748-781

782-815

816-849

850-883

884-917

918-951

952-985

986-1019

1020-1053

1054-1087

1088-1121

1122-1155

01 thru 09, then 0A thru 0Z, then

10 thru 19, then 1A thru 1Z, then

20 thru 29, then 2A thru 2Z, then

30 thru 39, then 3A thru 3Z, then

40 thru 49, then 4A thru 4Z, then

50 thru 59, then 5A thru 5Z, then

60 thru 69, then 6A thru 6Z, then

70 thru 79, then 7A thru 7Z, then

80 thru 89, then 8A thru 8Z, then

90 thru 99, then 9A thru 9Z, then

A0 thru A9, then AA thru AZ, then

B0 thru B9, then BA thru BZ, then

C0 thru C9, then CA thru CZ, then

D0 thru D9, then DA thru DZ, then

E0 thru E9, then EA thru EZ, then

F0 thru F9, then FA thru FZ, then

G0 thru G9, then GA thru GZ, then

H0 thru H9, then HA thru HZ, then

J0 thru J9, then JA thru JZ, then

K0 thru K9, then KA thru KZ, then

L0 thru L9, then LA thru LZ, then

M0 thru M9, then MA thru MZ, then

N0 thru N9, then NA thru NZ, then

P0 thru P9, then PA thru PZ, then

Q0 thru Q9, then QA thru QZ, then

R0 thru R9, then RA thru RZ, then

S0 thru S9, then SA thru SZ, then

T0 thru T9, then TA thru TZ, then

U0 thru U9, then UA thru UZ, then

V0 thru V9, then VA thru VZ, then

W0 thru W9, then WA thru WZ, then

X0 thru X9, then XA thru XZ, then

Y0 thru Y9, then YA thru YZ, then

Z0 thru Z9, then ZA thru ZZ

(ii) Three-position numbers.
Cumulative No. of Line Items Serial Number Sequence

1-33

34-67

68-101

102-135

136-305

01 thru 009, then 00A thru 00Z, then

010 thru 019, then 01A thru 01Z, then

020 thru 029, then 02A thru 02Z, then

030 thru 039, then 03A thru 03Z and so on to

306-339

340-373

374-407

408-441

442-1121

1122-1155

1156-1189

1190-1223

1224-1257

1258-1461

1462-1495

1496-1529

1530-1563

1564-2277

2278-2311

2312-2345

2346-2379

2380-2413

2414-2617

2618-2651

2652-2685

2686-2719

2720-3433

3434-3467

3468-3501

3502-10403

10404-10437

10438-10471

10472-10709

10710-10743

10744-10777

10778-10811

10812-11525

11526-11559

090 thru 099, then 09A thru 09Z, then

0A0 thru 0A9, then 0AA thru 0AZ, then

0B0 thru 0B9, then 0BB thru 0BZ, then

0C0 thru 0C9, then 0CA thru 0CZ, and so on to

0Z0 thru 0Z9, then 0ZA thru 0ZZ, then

100 thru 109, then 10A thru 10Z, then

110 thru 119, then 11A thru 11Z, then

120 thru 129, then 12A thru 12Z, and so on to

190 thru 199, then 19A thru 19Z, then

1A0 thru 1A9, then 1AA thru 1AZ, then

1B0 thru 1B9, then 1BA thru 1BZ, and so on to

1Z0 thru 1Z9, then 1ZA thru 1ZB, then

200 thru 109, then 10A thru 10Z, then

210 thru 219, then 21A thru 21Z, then

220 thru 229, then 22A thru 22Z, and so on to

290 thru 299, then 29A thru 29Z, then

2A0 thru 2A9, then 2AA thru 2AZ, then

2B0 thru 2B9, then 2BA thru 2BZ, and so on to

2Z0 thru 2Z9, then 2ZA thru 2ZZ, then

300 thru 309, then 30Z thru 30Z, and so on to

900 thru 909, then 90A thru 90Z, then

910 thru 919, then 91A thru 91Z, and so on to

990 thru 999, then 99A thru 99Z, then

9A0 thru 9A9, then 9AA thru 9AZ, then

9B0 thru 9B9, then 9BA thru 9BZ, and so on to

9Z0 thru 9Z9, then 9ZA thru 9ZZ

PGI 204.7107 Contract accounting classification reference

number (ACRN) and agency accounting identifier (AAI).

(a) Establishing the contract ACRN.

(1) The contracting office issuing the contract is responsible for assigning ACRNs. This authority

shall not be delegated. If more than one office will use the contract (e.g., ordering officers, other
contracting officers), the contract must contain instructions for assigning ACRNs.

(2) ACRNs shall be established in accordance with the following guidelines:

(i) Do not use the letters I and O.

(ii) In no case shall an ACRN apply to more than one accounting classification citation, nor shall

more than one ACRN be assigned to one accounting classification citation.

(b) Establishing an AAI. An AAI, as detailed

http://www.acq.osd.mil/dpap/policy/policyvault/USA002246-09-DPAP.pdf, is a six-digit data element

that identifies a system in which accounting for specific funds is performed. The funding office will

provide to the contracting office the AAI associated with the funding for each line item.

(c) Capturing accounting and appropriations data in procurement. Procurement instruments shall

identify the funding used for the effort in one of two ways.

(1) In legacy system environments where the contracting and accounting processes are not

sufficiently integrated to ensure use of the Procurement Instrument Identifiers (PIIDs) (see DFARS

Subpart 204.16) and line item numbers as common keys, the contract shall include the accounting

and appropriations data and ACRN as follows:

(i) Show the ACRN as a detached prefix to the accounting classification citation in the accounting

and appropriations data block or, if there are too many accounting classification citations to fit

reasonably in that block, in section G (Contract Administration Data).

(ii) ACRNs need not prefix accounting classification citations if the accounting classification citations

are present in the contract only for the transportation officer to cite to Government bills of lading.

(iii) If the contracting officer is making a modification to a contract and using the same accounting

classification citations, which have had ACRNs assigned to them, the modification need cite only the

ACRNs in the accounting and appropriations data block or on the continuation sheets.

(iv) Showing the ACRN in the contract. If there is more than one ACRN in a contract, all the ACRNs

will appear in several places in the schedule (e.g., ACRN: AA).

(A) Ship-to/mark-for block. Show the ACRN beside the identity code of each activity in the shipto/mark-for block unless only one accounting classification citation applies to a line item or subline

item. Only one ACRN may be assigned to the same ship-to/mark-for within the same contract line or

subline item number unless multiple accounting classification citations apply to a single

nonseverable deliverable unit such that the item cannot be related to an individual accounting

classification citation.

(B) Supplies/services column.

(1) If only one accounting classification citation applies to a line item or a subline item, the ACRN

shall be shown in the supplies/services column near the item description.

(2) If more than one accounting classification citation applies to a single contract line item, identify

each assigned ACRN and the amount of associated funds using informational subline items (see

DFARS 204.7104-1(a)).

(2) The contract shall include AAIs and ACRNs in system environments where the accounting
systems are able to use PIIDs and line item numbers as common keys to enable traceability of

funding to contract actions. Include AAIs and ACRNs as follows:

(i) Showing the ACRN in the contract. If there is more than one ACRN in a contract, all the ACRNs

will appear in several places in the schedule (e.g., ACRN: AA).

(A) Ship-to/mark-for block. Show the ACRN beside the identity code of each activity in the shipto/mark-for block unless only one accounting classification citation applies to a line item or subline

item. Only one ACRN may be assigned to the same ship-to/mark-for within the same contract line or

subline item number unless multiple accounting classification citations apply to a single

nonseverable deliverable unit such that the item cannot be related to an individual accounting

classification citation.

(B) Supplies/services column.

(1) If only one accounting classification citation applies to a line item or a subline item, the ACRN

shall be shown in the supplies/services column near the item description.

(2) If more than one accounting classification citation applies to a single contract line item, identify

each assigned ACRN and the amount of associated funds using informational subline items (see

DFARS 204.7104-1(a)).

(ii) Showing the AAI in the contract. If there is more than one AAI in a contract, show the AAI in the

supplies/services column of the Schedule next to the ACRN. A sample showing the AAI is as follows:

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT

PRICE AMOUNT

0002 BRU-32 B/A

Ejector Bomb Rack 23 Each $22,206.00 $510,738.00

MILSTRIP: N0001906P7PM230

PURCHASE REQUEST NUMBER: 0010144885-0001

ACRN: AA

AAI: 050119

PGI 204.7108 Payment instructions.

(a) Scope. This section applies to contracts and orders that are funded by multiple accounting

classification reference number (ACRN) citations and—

(1) Include deliverable line items or deliverable subline items (see FAR 4.1005-1) that are funded by

multiple ACRNs; or

(2) Authorize financing payments.
(b) For contracts and orders covered by this subpart—

(1) The contracting officer shall insert the table at paragraph (b)(2), or a link to the table at (b)(2)

(https://www.acq.osd.mil/dpap/dars/pgi/pgi_htm/current/PGI204_71.htm#pay...) in Section G of the

contract, or equivalent. When some, but not all, of the fixed-price line items in a contract are subject

to contract financing payments, the contracting officer shall clearly identify to which line items the

payment clause(s) included in Section I of the contract apply.

(2) The payment office shall allocate and record the amounts paid from the ACRNs in the contract

using the table in this paragraph (b)(2) based on the type of payment request submitted (see DFARS

252.232-7006) and the type of effort identified by the Product Service Code for each deliverable line

item or subline item (see FAR 4.1005-1).

For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

52.212-4 (Alt I),

Contract Terms and

Conditions—Commercial

Products and

Commercial Services;

52.216-7, Allowable

Cost and Payment;

52.232-7, Payments

Under Time-andMaterials and LaborHour Contracts

Cost Voucher X X N/A

Line item

specific

proration. If

there is more

than one

ACRN within

a deliverable

contract line

item, the

funds will be

allocated in

the same

proportion as

the amount of

funding

currently

unliquidated

for each

ACRN on the

line item

billed.
For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

52.232-1, Payments;

252.217-7007, Payments

(vessel repair and

alterations)

Navy Shipbuilding

Invoice (Fixed

Price)

X X N/A

Line item

specific by

fiscal year. If

there is more

than one

ACRN within

a deliverable

line or

deliverable

subline item,

the funds will

be allocated

using the

oldest funds

first. In the

event of a

deliverable

line or

deliverable

subline item

with two or

more ACRNs

with the same

fiscal year,

those amounts

will be

prorated to

the available

unliquidated

funds for that

year.
For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

52.232-1, Payments;

52.232-2, Payments

under Fixed-Price

Research and

Development Contracts;

52.232-3, Payments

under Personal Services

Contracts;

52.232-4, Payments

under Transportation

Contracts and

Transportation-Related

Services Contracts; and

52.232-6, Payments

under Communication

Service Contracts with

Common Carriers

Invoice X X N/A

Line item

specific

proration. If

there is more

than one

ACRN within

a deliverable

line item or

deliverable

subline item,

the funds will

be allocated in

the same

proportion as

the amount of

funding

currently

unliquidated

for each

ACRN on the

deliverable

line or

deliverable

subline item

for which

payment is

requested.
For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

52.232-5, Payments

Under Fixed-Price

Construction Contracts

Construction and

Facilities

Management

Invoice

N/A N/A X

Line item

specific by

fiscal year. If

there is more

than one

ACRN within

a deliverable

line or

deliverable

subline item,

the funds will

be allocated

using the

oldest funds

first. In the

event of a

deliverable

line or

deliverable

subline item

with two or

more ACRNs

with the same

fiscal year,

those amounts

will be

prorated to

the available

unliquidated

funds for that

year.
For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

52.232-16, Progress

Payments (excluding

contracts with multiple

lot progress payments)

Progress Payment* X X N/A

Contract-wide

proration.

Funds shall be

allocated in

the same

proportion as

the amount of

funding

currently

unliquidated

for each

ACRN.

Progress

payments are

considered

contract level

financing, and

the “contract

price” shall

reflect the

fixed-price

portion of the

contract per

FAR 32.501-3.

52.232-16, Progress

Payments

252.232-7018, Progress

Payments- Multiple Lots

Progress Payment* X X N/A

Lot-wide

proration

(applies to lots

specifically

identified in

the contract).

If there is

more than one

ACRN within

a lot, the

funds will be

allocated in

the same

proportion as

the amount of

funding

currently

unliquidated

for each

ACRN on the

lot for which

payment is

requested.

See

paragraph (c)

of this section

for multiple

lot CLIN

structure.
For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

52.232-29, Terms for

Financing of Purchases

of Commercial Products

and Commercial

Services;;

52.232-30, Installment

Payments for

Commercial Products

and Commercial

Services

Commercial

Product and

Commercial

Service;

Financing*

X X N/A

Specified in

approved

payment. The

contracting

officer shall

specify the

amount to be

paid and the

account(s) to

be charged for

each payment

approval in

accordance

with FAR

32.207(b)(2).

52.232-32,

Performance-Based

Payments

Performance-Based

Payments* X X N/A

Specified in

approved

payment. The

contracting

officer shall

specify the

amount to be

paid and the

account(s) to

be charged for

each payment

approval in

accordance

with FAR

32.1007(b)(2).

252.232-7002, Progress

Payments for Foreign

Military Sales

Acquisitions

Progress Payment* X X N/A

Allocate costs

among line

items and

countries in a

manner

acceptable to

the

Administrative

Contracting

Officer.
For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

*Liquidation of

Financing Payments.

Liquidation will be

applied by the payment

office against those

ACRNs which are

identified by the

payment instructions for

the delivery payment

and in keeping with the

liquidation provision of

the applicable contract

financing clause (i.e.,

progress payment,

performance-based

payment, or commercial

product and commercial

service financing).

(c) The following example illustrates a contract with multiple lots. Note that each lot is specifically

identified in Section B of the Schedule in the event lot-wide proration will be used in accordance

with DFARS 252.232-7018, Progress Payments-Multiple Lots. Note also that cost-reimbursement line

items are not included in the request for progress payment.

Section B – Supplies or services and prices/costs.

ITEM

NO. SUPPLIES/SERVICE QUANTITY UNIT UNITPRICE AMOUNT

Lot 1 (FYXX)

0001 Lot 1 ABC Vehicle (FFP)

0001AA Lot 1 ABC Vehicles,

Army (Procurement) 19 EA $300,000 $5,700,000

0001AB

Lot 1 ABC Vehicles,

Marine Corps

(Procurement)

11 EA $300,000 $3,300,000

0002 Data for Item 0001 NSP

0003 Lot 1 Initial Spares (FFP)
ITEM

NO. SUPPLIES/SERVICE QUANTITY UNIT UNITPRICE AMOUNT

0003AA

Lot 1 ABC Vehicle Initial

Spares Army (See

Exhibit C, $456,000)

(Procurement)

0003AB

Lot 1 ABC Vehicle Initial

Spares Marine Corps

(See Exhibit D,

$264,000) (Procurement)

0004

Lot 1 System

Engineering and

Program Management

(CPFF)

1 Lot

Est. Cost:

$167,400

Fixed Fee:

$12,600

OPTION ITEMS

Lot 2 (FYXY)

1001 Lot 2 ABC Vehicles (FFP)

1001AA Lot 2 ABC Vehicles,

Army (Procurement) 25 EA $303,000 $7,575,000

1001AB

Lot 2 ABC Vehicles,

Marine Corps

(Procurement)

15 EA $307,500 $4,545,000

1002 Data for Item 1001 NSP

1003 Lot 2 Initial Spares (FFP)

1003AA

Lot 2 ABC Vehicle Initial

Spares Army (See

Exhibit E, $606,000)

(Procurement)

1003AB

Lot 2 ABC Vehicle Initial

Spares Marine Corps

(See Exhibit F,

$363,600) (Procurement)
ITEM

NO. SUPPLIES/SERVICE QUANTITY UNIT UNITPRICE AMOUNT

1004

Lot 2 System

Engineering and

Program Management

(CPFF)

1 Lot

Est. Cost:

$225,432

Fixed Fee:

$16,968