FAR 11.401—General.
Plain-English Summary
FAR 11.401 explains how the Government must handle time of delivery or performance in solicitations and awards. It covers three main topics: making delivery/performance time an essential contract element and stating it clearly in the solicitation, ensuring the schedule is realistic and not unnecessarily restrictive, telling bidders or offerors how delivery/performance time will be evaluated unless that is clearly unnecessary, and using liquidated damages when timely performance is unusually important to the Government. In practice, this section is meant to prevent unrealistic schedules that limit competition, disadvantage small businesses, and drive up prices. It also helps contractors understand how schedule will affect evaluation so they can price and plan accordingly. For contracting officers, it is a reminder that schedule is not just an administrative detail; it is a material acquisition term that must be planned, disclosed, and evaluated carefully.
Key Rules
Delivery time must be stated clearly
The time of delivery or performance is an essential contract element and must be clearly stated in the solicitation. Offerors need to know the required schedule up front so they can decide whether and how to compete.
Schedules must be realistic
Contracting officers must make sure delivery or performance schedules are realistic and fit the acquisition’s actual needs. Unrealistically short or hard-to-meet schedules can reduce competition, conflict with small business policy, and increase prices.
Unreasonable schedules can harm competition
Schedules that are unnecessarily short or difficult to attain tend to restrict competition and may discourage capable firms from bidding. They can also create barriers for small businesses and lead to higher contract costs.
Evaluation basis must be disclosed
Solicitations must inform bidders or offerors how delivery or performance time will be evaluated, unless doing so is clearly unnecessary. This gives vendors a fair understanding of whether schedule will be a factor in source selection or award.
Liquidated damages may be appropriate
When timely delivery or performance is unusually important to the Government, the contracting officer may use liquidated damages clauses under subpart 11.5. This provides a contractual remedy for late performance where actual damages would be hard to measure.
Responsibilities
Contracting Officer
State delivery or performance time clearly in the solicitation, ensure the schedule is realistic, avoid unnecessarily restrictive timelines, disclose the evaluation basis for schedule unless clearly unnecessary, and consider liquidated damages when timely performance is unusually important.
Agency/Requirement Owner
Provide accurate mission needs and timing requirements so the contracting officer can build a realistic schedule. Identify whether timely delivery is critical enough to justify liquidated damages or schedule-related evaluation factors.
Bidders/Offerors
Review the stated delivery or performance schedule and the evaluation basis carefully, then propose a schedule they can actually meet. Account for schedule risk in pricing, staffing, and production planning.
Practical Implications
A realistic schedule is both a competition issue and a pricing issue: overly aggressive timelines can shrink the pool of bidders and raise costs.
Contracting officers should document the basis for the required schedule, especially when the requirement is tight or when liquidated damages are being considered.
If schedule will matter in source selection, the solicitation should say so plainly; otherwise, offerors may assume it is not a discriminator.
Small businesses may be disproportionately affected by short or difficult schedules, so schedule planning should be checked against small business policy goals.
When timely performance is critical, liquidated damages can be useful, but they should be used thoughtfully and tied to the actual importance of on-time delivery or performance.
Official Regulatory Text
(a) The time of delivery or performance is an essential contract element and shall be clearly stated in solicitations. Contracting officers shall ensure that delivery or performance schedules are realistic and meet the requirements of the acquisition. Schedules that are unnecessarily short or difficult to attain- (1) Tend to restrict competition, (2) Are inconsistent with small business policies, and (3) May result in higher contract prices. (b) Solicitations shall, except when clearly unnecessary, inform bidders or offerors of the basis on which their bids or proposals will be evaluated with respect to time of delivery or performance. (c) If timely delivery or performance is unusually important to the Government, liquidated damages clauses may be used (see subpart 11.5 ).