FAR 52.216-19 - Order Limitations

From Knowledge base
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Prescribed in 16.506(b)

Effective Date:1 October 1995
Clause or Provision:Clause
Provision or Clause Number: 52.216-19 - Order Limitations

Principle Type And/Or Purpose of Contract:
Required:
Applicable:Indefinite Delivery
Optional:Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Facilities; Dismantling, Demolition or Removal of Improvements; Leasing of Motor Vehicles; Fixed Price, Construction; Time & Material/Labor Hour; Cost Reimbursement, Construction; Fixed Price, Service; Cost Reimbursement, Supply; Cost Reimbursement, Service
Subject:Definite-Quantity, Indefinite Quantity, or Requirements Contract
ProcurementType:
Contract Threshold:
Prescription Overview:

Prescription

(b) Insert a clause substantially the same as the clause at 52.216-19, Order Limitations, in solicitations and contracts when a definite-quantity contract, a requirements contract, or an indefinite-quantity contract is contemplated.

Clause Overview:

Clause

(a) Minimum order

When the Government requires supplies or services covered by this contract in an amount of less than _____________ [insert dollar figure or quantity], the Government is not obligated to purchase, nor is the Contractor obligated to furnish, those supplies or services under the contract.


(b) Maximum order

The Contractor is not obligated to honor—

  • (1) Any order for a single item in excess of _____________ [insert dollar figure or quantity];
  • (2) Any order for a combination of items in excess of ______________ [insert dollar figure or quantity]; or
  • (3) A series of orders from the same ordering office within _____________ days that together call for quantities exceeding the limitation in paragraph (b)(1) or (2) of this section.


(c) If this is a requirements contract (i.e., includes the Requirements clause at subsection 52.216-21 of the Federal Acquisition Regulation (FAR)), the Government is not required to order a part of any one requirement from the Contractor if that requirement exceeds the maximum-order limitations in paragraph (b) of this section.


(d) Notwithstanding paragraphs (b) and (c) of this section, the Contractor shall honor any order exceeding the maximum order limitations in paragraph (b), unless that order (or orders) is returned to the ordering office within _____ days after issuance, with written notice stating the Contractor’s intent not to ship the item (or items) called for and the reasons. Upon receiving this notice, the Government may acquire the supplies or services from another source.

Important Notes/Requirements:
Subcontract Threshold:
Incorporated by Reference:No
Uniform Contract Format:I
Editor:Marshall

Personal notes.