Overview
FAR 4.1006 establishes the requirements for identifying and referencing line items when a contract or procurement instrument is modified.
Key Rules
- New Item Identification: Any new requirement added to a contract, such as an increase in quantity, must be assigned its own unique, new line item number.
- Cross-Referencing: When a modification impacts previously established line items, the modification must explicitly refer to those specific existing line item numbers.
Practical Implications
- Financial Traceability: These rules ensure a clear audit trail for funding and delivery, preventing the "commingling" of original contract requirements with subsequent changes.
- System Integrity: Following these standards allows automated procurement and payment systems to accurately track contract lifecycle changes without manual reconciliation.