FAR 11.7—Subpart 11.7

Supply contracts.

FAR 11.701 explains how fixed-price supply contracts may handle quantity variation when the difference between ordered and delivered quantities is caused by loading, shipping, packing, or manufacturing-process allowances. It tells contracting officers when and how to authorize permissible overrun or underrun, requires that any allowed variation be stated as a percentage, and notes that subsistence items may use other quantity-variation terms. The section also limits the size of the variation by tying it to normal commercial practice, requiring the smallest reasonable percentage needed to protect the contractor, and capping the variation at plus or minus 10 percent unless agency regulations allow something different. It further addresses how the percentage applies when deliveries go to multiple destinations and the contract must say so explicitly if the variation is to apply separately at each destination. Finally, it assigns responsibility for delivering the specified quantity and explains how the Government may handle excess quantities, including the optional use of FAR 52.211-17 for overshipments up to or over $250 in value.

Construction contracts.

FAR 11.702 addresses how to handle variations in estimated quantities for unit-priced items in construction contracts. It explains when a contract may allow estimated quantities to vary, when either party can demand an equitable adjustment in price, and how the 15 percent threshold works for increases or decreases in actual quantities. It also covers the contractor’s right to request a time extension when the quantity change delays completion, the requirement to submit that request in writing within 10 days from the start of the delay period, and the contracting officer’s authority to extend that deadline before final settlement. In practice, this section is meant to keep construction pricing fair when actual field quantities differ from estimates, while also creating a clear process for adjusting both price and schedule based on the facts of the job.

Contract clauses.

FAR 11.703 tells contracting officers which standard FAR clauses to use when a solicitation or contract allows quantity variation in certain fixed-price acquisitions. It covers three separate clause decisions: the mandatory use of FAR 52.211-16, Variation in Quantity, for fixed-price supplies and for services that include furnishing supplies when a variation is authorized; the discretionary use of FAR 52.211-17, Delivery of Excess Quantities, in fixed-price supply contracts; and the mandatory use of FAR 52.211-18, Variation in Estimated Quantity, in fixed-price construction contracts that authorize variation in the estimated quantity of unit-priced items. The section exists to make quantity-risk terms explicit up front so both sides know when the Government may accept more or less than the stated amount, how excess deliveries are handled, and how estimated quantities in construction will be treated. In practice, this section helps prevent disputes over overdelivery, underdelivery, and unit-price adjustments by ensuring the right clause is included in the solicitation and carried into the contract. It is especially important where pricing, performance, and acceptance depend on quantity tolerances rather than a strict exact-quantity requirement.