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.

Parent topic: PGI 204.71 -UNIFORM CONTRACT LINE ITEM NUMBERING SYSTEM