FAR 16.5—Subpart 16.5

Scope of subpart.

FAR 16.500 explains the scope of Subpart 16.5, which governs indefinite-delivery contracts and the government’s preference for multiple awards of indefinite-quantity contracts. It tells contracting officers when this subpart applies, what it does not limit, and how it interacts with other authorities and FAR parts. The section specifically addresses the relationship to other-than-competitive procedures under Part 6, GSA’s separate authority for Federal Supply Schedule, multiple-award, and task or delivery order contracts, and the precedence of GSA regulations and the coverage in Subpart 8.4 and Part 38. It also carves out architect-engineer contracts subject to Subpart 36.6, while allowing agencies to use multiple awards for A-E services if they follow the A-E selection and ordering rules. Finally, it points readers to Subpart 19.5 for small-business set-asides, reserves, and order-level set-asides under multiple-award contracts. In practice, this section is a roadmap for deciding whether Subpart 16.5 applies, whether another FAR framework controls, and how to structure multiple-award strategies without conflicting with specialized statutory or regulatory regimes.

[Reserved]

Definite-quantity contracts.

FAR 16.502 explains the definite-quantity contract, one of the Federal Acquisition Regulation’s contract types used when the Government can identify in advance a fixed amount of supplies or services it will need during a stated contract period. This section covers two main topics: the definition of a definite-quantity contract and the conditions for using it. In practice, it means the Government commits to buying a specific quantity, but the exact timing and location of deliveries or performance are scheduled later by order. The rule is intended for situations where demand is predictable and the items or services are regularly available, or can be made available after only a short lead time. For contracting officers, this section helps determine whether this contract type is appropriate; for contractors, it signals that the Government’s obligation is tied to a known total quantity, while individual delivery/performance orders will control execution details.

Requirements contracts.

FAR 16.503 explains what a requirements contract is, when it is appropriate, and the special limits that apply to its use. It covers the basic structure of a requirements contract for supplies or services, the need to state a realistic estimated total quantity in the solicitation and contract, and the ability to set maximum or minimum order quantities and overall ordering/delivery limits. It also addresses when requirements contracts are suitable, including recurring needs that cannot be precisely predicted, and imposes a special restriction on single-source awards over $150 million unless a required determination is made. In addition, it includes a rule for contracts involving repair, modification, or overhaul of Government-furnished property, making clear that shortfalls in estimated or maximum quantities do not automatically entitle the contractor to an equitable adjustment. Finally, it places limits on requirements contracts for advisory and assistance services, including a three-year/$20 million threshold and an exception when such services are only incidental to a broader acquisition. In practice, this section is about balancing flexibility for the Government with fair notice to offerors and contractors about the scope and risk of the work.

Indefinite-quantity contracts.

FAR 16.504 explains how indefinite-quantity (IDIQ) contracts work and when contracting officers should use them. It covers the basic structure of an IDIQ contract, including the Government’s obligation to order a stated minimum, the contractor’s obligation to furnish quantities up to a stated maximum, and how minimum and maximum quantities may be expressed in units or dollars. It also addresses how to set reasonable minimum and maximum quantities, what must be included in the solicitation and contract (period of performance, options, scope description, ordering procedures, authorized ordering activities, and oral-order authority), and when an IDIQ is appropriate based on recurring needs and uncertainty in exact quantities. The section further establishes a strong preference for multiple-award IDIQ contracts, explains the acquisition-planning factors and exceptions for using multiple awards, requires documentation of the decision, and imposes special approval requirements for certain large single-award task or delivery order contracts over $150 million. In practice, this section is about preserving flexibility for the Government while keeping the contract legally binding, competition-focused, and properly structured so orders can be placed efficiently without exceeding the contract’s scope or statutory limits.

Ordering.

FAR 16.505 explains how contracting officers place orders under indefinite-delivery contracts, including task orders and delivery orders. It covers when orders must not be synopsized, how orders must be written and scoped, the requirement to use performance-based acquisition methods for services when practicable, and special rules for brand-name or other items peculiar to one manufacturer. It also addresses modular contracting for IT, required order content, use of ordering media, and special considerations for orders placed under governmentwide or multi-agency contracts. In addition, it covers architect-engineer services ordered through multi-agency contracts, protest limits for task and delivery orders, and small business size-status protests for set-aside orders. Practically, this section is the core operating rulebook for issuing orders under IDIQ, GWAC, and MAC vehicles, and it helps ensure orders stay within scope, comply with funding and competition rules, and are documented properly for audit and protest purposes.

Solicitation provisions and contract clauses.

FAR 16.506 tells contracting officers which solicitation provisions and contract clauses must be included when using the various types of indefinite-delivery and related contracts covered in FAR Part 16. It addresses the Ordering clause, Order Limitations, Definite Quantity, Requirements, and Indefinite Quantity clauses, plus the provisions for Single or Multiple Awards and Multiple Awards for Advisory and Assistance Services. It also points to related requirements for the Market Research clause, the small business solicitation provision for multiple-award contracts above the substantial bundling threshold, and the Task-Order and Delivery-Order Ombudsman clause. In practice, this section is a checklist for building a legally complete solicitation and contract package based on the contract type and acquisition strategy. It matters because the wrong clause, the wrong alternate, or a missing provision can change ordering rights, limit competition, create protest risk, or make the contract inconsistent with FAR requirements. The section also ties clause selection to special circumstances such as nonpersonal services exceeding a government activity’s internal capability, subsistence for government use and resale, partial small business set-asides, advisory and assistance services, and multiple-agency use of a multiple-award IDIQ.