Overview
FAR Subpart 4.10 establishes standardized policies and procedures for the creation and identification of line items and subline items within federal procurement instruments. The subpart aims to improve the accuracy, traceability, and usability of procurement data by ensuring that supplies and services are clearly defined and mapped to specific funding and delivery requirements.
Key Rules
- Mandatory Use: These regulations apply to all solicitations, contracts (including GWACs, MACs, and FSS), agreements with pre-priced items, and task/delivery orders.
- Line Item Characteristics: To be established as a separate line item, a deliverable must typically have a unique identification (NSN or PWS), a single unit price, a single accounting classification (funding code), and a specific delivery schedule or destination.
- Subline Items (SLIs):
- Deliverable SLIs: Used to distinguish minor variations (e.g., different colors, sizes, or delivery dates) under a broader line item.
- Informational SLIs: Used for administrative purposes or to identify parts of an assembly; they do not require separate accounting citations.
- Data Integrity: Each line item or deliverable subline item must include a Product or Service Code (PSC) and specific pricing data (fixed-price or cost-reimbursement details).
- Contract Types: All subline items must share the same contract pricing type (e.g., firm-fixed-price) as their parent line item.
- Modifications: When a modification adds a new item or increases quantity, a new line item number must be assigned to maintain data traceability.
- Provision 52.204-22: This provision must be included in all solicitations, allowing offerors to propose alternative line item structures that may be more efficient for their commercial processes.
Responsibilities
- Contracting Officers (COs):
- Ensuring that solicitations and contracts are structured with unique, traceable line items.
- Correctly assigning PSCs and accounting codes at the line-item level.
- Including the mandatory "Alternative Line Item Proposal" provision in solicitations.
- Assigning new line item numbers during contract modifications when adding new deliverables.
- Program Managers / Requirements Owners:
- Defining requirements so that deliverables are "separately identifiable."
- Providing distinct Statements of Work (SOW) or Performance Work Statements (PWS) for different service items to justify separate line items.
- Offerors/Contractors:
- Proposing alternative line item structures if the government’s structure does not align with their delivery or shipping capabilities (per FAR 52.204-22).
Practical Implications
- Enhanced Auditability: By requiring a single accounting classification for most line items, the government can track exactly which "pot of money" paid for a specific item, reducing financial reconciliation errors.
- Streamlined Payments: Automated payment systems (like Wide Area Workflow) rely on clear line item data. Proper use of Subpart 4.10 prevents "rejected" invoices that occur when shipping or pricing data does not match the contract structure.
- System Interoperability: This subpart forces a uniform structure across different agency procurement systems, ensuring that data can be shared and analyzed at a government-wide level (e.g., for "Category Management" initiatives).
- Flexibility for Vendors: The policy on "Alternative Line Item Proposals" acknowledges that the government's preferred structure might not match a vendor's inventory system (e.g., shipping a "kit" as three separate components), allowing for better commercial alignment.