FAR 16.500—Scope of subpart.
Plain-English Summary
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.
Key Rules
Subpart 16.5 scope
This subpart sets the policies and procedures for awarding indefinite-delivery contracts. It also establishes a preference for multiple awards of indefinite-quantity contracts, meaning agencies should generally consider multiple-award structures when using that contract type.
No limit on Part 6 exceptions
Subpart 16.5 does not restrict the use of other-than-competitive procedures authorized by FAR Part 6. If a valid statutory or regulatory exception to full and open competition applies, that authority remains available.
GSA authority preserved
Nothing in this subpart limits GSA’s authority to use schedule, multiple-award, or task/delivery order contracts under other laws. For Federal Supply Schedule acquisitions, GSA regulations and the coverage in Subpart 8.4 and Part 38 take precedence over Subpart 16.5.
A-E contracts excluded from preference
The statutory preference for multiple awards in this subpart does not apply to architect-engineer contracts governed by Subpart 36.6. Agencies may still make multiple awards for A-E services under Subpart 16.5, but contractor selection and order placement must remain consistent with Subpart 36.6.
Small-business procedures cross-reference
For multiple-award contracts, agencies must look to Subpart 19.5 for procedures to set aside part or parts of a contract, reserve one or more awards for small business, and set aside orders for small businesses under multiple-award contracts.
Responsibilities
Contracting Officer
Determine whether Subpart 16.5 applies to the acquisition and whether another authority controls, such as Part 6 exceptions, GSA schedule rules, or Subpart 36.6 for architect-engineer services. When using multiple-award indefinite-quantity contracts, apply the preference appropriately and coordinate any small-business set-aside, reserve, or order-level set-aside actions under Subpart 19.5.
Agency
Structure indefinite-delivery acquisitions in a way that complies with the applicable FAR framework and any special statutory authority. Ensure internal acquisition planning recognizes when GSA rules, A-E procedures, or small-business programs supersede or supplement Subpart 16.5.
GSA
Exercise its separate authority for schedule, multiple-award, and task or delivery order contracts under applicable law. Apply GSA regulations and the Federal Supply Schedule coverage in Subpart 8.4 and Part 38 where those authorities govern.
Contractor
Understand which acquisition framework governs the solicitation and resulting contract, especially when the procurement involves multiple awards, GSA schedules, or architect-engineer services. Follow the applicable ordering and competition rules, including any small-business restrictions or set-asides.
Small Business Program Officials
Advise on and implement the set-aside, reserve, and order-level procedures referenced in Subpart 19.5 for multiple-award contracts. Coordinate with contracting officers to ensure small-business opportunities are properly considered and documented.
Practical Implications
Contracting officers must identify the governing framework early: Subpart 16.5, Part 6 exceptions, GSA schedule rules, or Subpart 36.6 for A-E services. Choosing the wrong framework can invalidate the acquisition approach or create protest risk.
The multiple-award preference matters most in acquisition planning for indefinite-quantity contracts; agencies should document why a single award is chosen if they depart from the preference.
GSA schedule and related acquisitions are not controlled by Subpart 16.5, so applying the wrong ordering or competition rules is a common mistake.
Architect-engineer procurements require special care: multiple awards may be used, but only if contractor selection and order placement remain consistent with Subpart 36.6.
Small-business strategies are not optional afterthoughts; agencies should evaluate set-asides, reserves, and order-level set-asides under Subpart 19.5 when planning multiple-award contracts.
Official Regulatory Text
(a) This subpart prescribes policies and procedures for making awards of indefinite-delivery contracts and establishes a preference for making multiple awards of indefinite-quantity contracts. (b) This subpart does not limit the use of other than competitive procedures authorized by part 6 . (c) Nothing in this subpart restricts the authority of the General Services Administration (GSA) to enter into schedule, multiple award, or task or delivery order contracts under any other provision of law. Therefore, GSA regulations and the coverage for the Federal Supply Schedule program in subpart 8.4 and part 38 take precedence over this subpart. (d) The statutory multiple award preference implemented by this subpart does not apply to architect-engineer contracts subject to the procedures in subpart 36.6 . However, agencies are not precluded from making multiple awards for architect-engineer services using the procedures in this subpart, provided the selection of contractors and placement of orders are consistent with subpart 36.6 . (e) See subpart 19.5 for procedures to set aside part or parts of multiple-award contracts for small businesses; to reserve one or more awards for small business on multiple-award contracts; and to set aside orders for small businesses under multiple-award contracts.