(c) (1) (ii) (D) Restriction of individual orders. 16 500 Scope of Subsection (a) This Subsection prescribes principles and procedures for the award of supply contracts of indefinite duration and establishes a preference for the multiple award of contracts of indefinite duration. (b) This Subsection does not restrict the application of competition procedures other than those permitted in Part 6. (c) Nothing in this Subsection limits the authority of the General Services Administration (GSA) to enter into schedule, multiple assignment, task or supply contracts under any other provision of the Act. Therefore, the GSA regulations and program coverage of the Federal Procurement Annex in paragraphs 8.4 and 38 take precedence over this paragraph. (d) The legal preference for multiple allocation introduced in this subsection does not apply to architect-engineer contracts subject to the procedures set out in paragraph 36.6. However, organizations shall not be precluded from awarding multiple awards for architectural engineering services using the procedures set out in this subsection, provided that the selection of contractors and the award of the contract are in accordance with Part 36.6. (e) See subsection 19.5 for procedures for the decommissioning of parts or parts of multiple supply contracts for small enterprises; reserve one or more small business premiums for multiple orders; and contracts for small businesses under multiple contracts. 16.501 [Reserved] 16.501-1 Definitions. Used in this subsection – Supply Order Contract means a delivery contract that does not purchase or stipulate a fixed quantity of deliveries (other than a minimum or maximum quantity) and provides for the placing of orders for the delivery of deliveries during the term of the contract. Task Order Contract means a service contract that does not purchase or stipulate a fixed amount of services (other than a minimum or maximum quantity) and provides for the placing of orders for the performance of tasks during the term of the contract. 16.501-2 General.
(a) There are three types of contracts with indefinite deliveries: volume contracts, demand contracts and quantity contracts of indefinite duration. For the purchase of deliveries and/or services, the corresponding type of supply contract may be used if the exact times and/or quantities of future deliveries are not known at the time the order is placed. Pursuant to 10 U.S.C. 2304d, and 41 U.S.C. 4101, demand contracts and volume contracts are also referred to as supply order contracts or contract contracts. (b) The different types of open-ended supply contracts offer the following advantages: (1) All three types allow (i) public stocks to be kept to a minimum; and (ii) direct shipping to Users. (2) Contracts of indefinite duration and on-demand contracts also allow (i) flexibility in both the planning of quantities and delivery; and (ii) order deliveries or services from the beginning of the request. (3) Contracts for indeterminate quantities shall limit the Government`s obligation to the minimum quantity set out in the contract. (4) On-demand contracts may allow for faster deliveries when production time is affected, as contractors are generally willing to maintain limited inventory when the government receives all of its actual procurement requirements from the contractor. (c) Delivery contracts of indefinite duration may provide for a reasonable cost or price agreement in accordance with Part 16. Cost or price agreements providing for an estimated quantity of supplies or services (e.g.B.
estimated number of hours of work) shall comply with the relevant procedures of this Subsection. 16,502 volume contracts. (a) Description. A volume contract provides for the delivery of a certain quantity of certain deliveries or services for a certain period of time, with deliveries or services scheduled to order at certain locations. (b) enforcement. A volume contract may be used if it can be determined in advance that: (1) during the term of the contract, a number of supplies or services are required; and (2) Supplies or services are available on a regular basis or will be available after a short period of time. 16,503 contracts on demand. (a) Description. An application contract provides that all actual procurement requirements for designated government activities for supplies or services are met (by a contractor) for a certain contractual period, with deliveries or services being planned by placing orders with the contractor. (1) For the information of suppliers and contractors, the customer must indicate a realistic estimated total quantity in the invitation and the resulting order. This estimate does not constitute assurance to a supplier or contractor that the estimated quantity is needed or ordered or that the conditions affecting the requirements are stable or normal. The contracting entity may obtain the estimate from records of past needs and consumption or otherwise and should base the estimate on the most recent information available.