FAR 16.502—Definite-quantity contracts.
Plain-English Summary
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.
Key Rules
Fixed total quantity
A definite-quantity contract must specify a definite quantity of specific supplies or services to be delivered or performed during the contract period. The Government is not buying an open-ended amount; the total quantity is established up front.
Scheduled by order
Although the quantity is fixed, actual deliveries or performance are scheduled later at designated locations upon order. This means the contract sets the overall obligation, while individual orders control when and where performance occurs.
Use only when need is known
This contract type may be used only when it can be determined in advance that a definite quantity will be required during the contract period. If the Government cannot reasonably predict the total need, this type is not appropriate.
Availability must be reliable
The supplies or services must be regularly available, or available after a short lead time. The rule is aimed at items or services that can be obtained without long production or mobilization delays.
Responsibilities
Contracting Officer
Determine whether the agency can identify in advance a definite quantity needed during the contract period and whether the supplies or services are regularly available or available after a short lead time. If those conditions are met, structure the contract to state the fixed quantity and provide for delivery or performance by order at designated locations.
Agency/Requirement Owner
Provide a realistic forecast of the total quantity needed during the contract period and confirm that the requirement is sufficiently predictable to support a definite-quantity approach. The agency must avoid using this contract type when demand is uncertain or likely to vary materially.
Contractor
Be prepared to furnish the stated quantity of supplies or services within the contract period and to perform or deliver according to orders issued for specific times and locations. The contractor must manage capacity and inventory so the required items or services remain available as promised.
Practical Implications
This contract type works best when demand is stable and the Government wants a firm commitment for a known total quantity, but flexible scheduling of deliveries or performance. It is less suitable for uncertain or fluctuating needs, where another contract type may fit better.
A common pitfall is using a definite-quantity contract when the agency only has an estimate, not a firm requirement. That can create ordering problems, performance shortfalls, or the need for contract changes.
Contracting officers should confirm that the items or services are actually available on a regular basis or with only short lead time; otherwise, the contract may be impractical to administer.
Contractors should pay close attention to the stated quantity and contract period, because the Government’s obligation is tied to that fixed amount, while the timing and location details will come through orders.
Because deliveries or performance are scheduled upon order, both parties should ensure the ordering process, lead times, and designated locations are clearly understood to avoid disputes over readiness and timing.
Official Regulatory Text
(a) Description . A definite-quantity contract provides for delivery of a definite quantity of specific supplies or services for a fixed period, with deliveries or performance to be scheduled at designated locations upon order. (b) Application . A definite-quantity contract may be used when it can be determined in advance that- (1) A definite quantity of supplies or services will be required during the contract period; and (2) The supplies or services are regularly available or will be available after a short lead time.