Validating a mission statement
The Government places orders for individual requirements.Quantity limits may be stated as number of units or as dollar values.(a) There are three types of indefinite-delivery contracts: definite-quantity contracts, requirements contracts, and indefinite-quantity contracts. (4) Requirements contracts may permit faster deliveries when production lead time is involved, because contractors are usually willing to maintain limited stocks when the Government will obtain all of its actual purchase requirements from the contractor.The appropriate type of indefinite-delivery contract may be used to acquire supplies and/or services when the exact times and/or exact quantities of future deliveries are not known at the time of contract award. (c) Indefinite-delivery contracts may provide for any appropriate cost or pricing arrangement under Part 16.The contracting officer should use an indefinite-quantity contract only when a recurring need is anticipated.(c) Multiple award preference— (1) Planning the acquisition.(4) The ability to maintain competition among the awardees throughout the contracts’ period of performance.(B) The contracting officer must not use the multiple award approach if— (1) Only one contractor is capable of providing performance at the level of quality required because the supplies or services are unique or highly specialized; (2) Based on the contracting officer’s knowledge of the market, more favorable terms and conditions, including pricing, will be provided if a single award is made; (3) The expected cost of administration of multiple contracts outweighs the expected benefits of making multiple awards; (4) The projected task orders are so integrally related that only a single contractor can reasonably perform the work; (5) The total estimated value of the contract is less than the simplified acquisition threshold; or (6) Multiple awards would not be in the best interests of the Government.
(2) No requirements contract in an amount estimated to exceed 2 million (including all options) may be awarded to a single source unless a determination is executed in accordance with 16.504(c)(1)(ii)(D).
(d) The statutory multiple award preference implemented by this subpart does not apply to architect-engineer contracts subject to the procedures in subpart 36.6. 4101, requirements contracts and indefinite-quantity contracts are also known as delivery-order contracts or task-order contracts.
However, agencies are not precluded from making multiple awards for architect-engineer services using the procedures in this subpart, provided the selection of contractors and placement of orders are consistent with subpart 36.6. (b) The various types of indefinite-delivery contracts offer the following advantages: (1) All three types permit— (i) Government stocks to be maintained at minimum levels; and (ii) Direct shipment to users.
(1) The contract must require the Government to order and the contractor to furnish at least a stated minimum quantity of supplies or services.
In addition, if ordered, the contractor must furnish any additional quantities, not to exceed the stated maximum.The contracting officer may obtain the estimate from records of previous requirements and consumption, or by other means, and should base the estimate on the most current information available.