Overview
FAR 16.502 defines a definite-quantity contract as an agreement to deliver a fixed amount of specific supplies or services over a set period, with individual deliveries triggered by specific orders.
Key Rules
- Fixed Parameters: The contract must specify a definite quantity of supplies or services and a fixed period of performance.
- Ordering Mechanism: Deliveries or performance are scheduled at designated locations only when an order is placed.
- Mandatory Determination: This contract type can only be used if the government determines in advance that a specific quantity will definitely be required during the contract period.
- Availability Requirement: The supplies or services must be either regularly available or available within a short lead time.
Practical Implications
- This structure allows the government to lock in pricing and quantity for known requirements while maintaining flexibility on the specific timing and location of deliveries.
- It is best suited for standardized items or recurring services where the total volume is certain, but immediate stockpiling is unnecessary or impractical.