Overview
FAR 16.506 prescribes the specific provisions and clauses required for definite-quantity, requirements, and indefinite-quantity (IDIQ) contracts. It provides a roadmap for Contracting Officers to standardize how orders are placed, how award limits are set, and how administrative oversight—such as the use of an Ombudsman—is handled.
Key Rules
- Mandatory Ordering Clauses: All indefinite-delivery contracts (definite-quantity, requirements, or IDIQ) must include FAR 52.216-18 (Ordering) and FAR 52.216-19 (Order Limitations).
- Contract-Specific Clauses:
- Definite-Quantity: Must use FAR 52.216-20.
- Requirements: Must use FAR 52.216-21, with specific Alternates (I-IV) required for nonpersonal services, subsistence items, or partial small business set-asides.
- Indefinite-Quantity: Must use FAR 52.216-22.
- Multiple Award Provisions: Solicitations for IDIQs that may result in multiple awards must include FAR 52.216-27 and specify the estimated number of awards. Special rules (FAR 52.216-28) apply to Advisory and Assistance Services exceeding $20 million and three years.
- Ombudsman Requirement: Multiple-award IDIQ contracts must include FAR 52.216-32 (Task-Order and Delivery-Order Ombudsman) to provide a contact for contractors with concerns regarding fair opportunity.
- Threshold-Based Requirements:
- Market Research: FAR 52.210-1 is required for non-commercial contracts exceeding $7.5 million.
- Bundling: FAR 52.207-6 is required for multiple-award contracts exceeding an agency's substantial bundling threshold.
Practical Implications
- Operational Constraints: The inclusion of FAR 52.216-19 (Order Limitations) is critical for contractors because it defines the minimum and maximum dollar values or quantities the government is obligated to order and the contractor is obligated to provide.
- Dispute Resolution: The mandatory Ombudsman clause ensures that in a multiple-award environment, contractors have a formal administrative avenue to challenge the "fair opportunity" process for specific task orders without jumping immediately to a legal protest.