FAR 16.506—Solicitation provisions and contract clauses.
Plain-English Summary
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.
Key Rules
Use ordering clause for IDIQ types
Insert FAR 52.216-18, Ordering, in solicitations and contracts when a definite-quantity, requirements, or indefinite-quantity contract is contemplated. This clause establishes how orders will be placed under the contract.
Limit orders as needed
Insert a clause substantially the same as FAR 52.216-19, Order Limitations, when a definite-quantity, requirements, or indefinite-quantity contract is contemplated. This clause sets limits on the size or timing of orders the contractor must accept.
Definite-quantity contracts need specific clause
Insert FAR 52.216-20, Definite Quantity, when a definite-quantity contract is contemplated. This clause is used only when the Government knows the exact quantity it intends to buy.
Requirements contracts need tailored clause
Insert FAR 52.216-21, Requirements, when a requirements contract is contemplated, and use the required alternates when the acquisition fits the listed special situations. The alternates address internal capability shortfalls, subsistence with brand-name acquisition, partial small business set-asides, or both conditions together.
Indefinite-quantity contracts need clause
Insert FAR 52.216-22, Indefinite Quantity, when an indefinite-quantity contract is contemplated. This clause is the core term for contracts where the Government orders as needs arise within stated minimum and maximum limits.
Multiple-award IDIQs need award provision
Insert FAR 52.216-27, Single or Multiple Awards, in solicitations for indefinite-quantity contracts that may result in multiple awards, and modify it to state the estimated number of awards. Do not use it for advisory and assistance services contracts exceeding 3 years and $20 million, including options.
AAS multiple-award provision for large buys
Insert FAR 52.216-28, Multiple Awards for Advisory and Assistance Services, in solicitations for task-order contracts for advisory and assistance services that exceed 3 years and $20 million, including options, unless a determination under FAR 16.504(c)(2)(i)(A) has been made. Modify it to state the estimated number of awards.
Market research clause may be required
See FAR 10.001(d) for insertion of FAR 52.210-1, Market Research, when the contract is over $7.5 million and the procurement is for items other than commercial products or commercial services. This requirement is separate from the IDIQ clause rules.
Small business solicitation provision may apply
See FAR 7.107-6 for use of FAR 52.207-6, Solicitation of Offers from Small Business Concerns and Small Business Teaming Arrangement or Joint Ventures (Multiple-Award Contracts), in solicitations for multiple-award contracts above the agency’s substantial bundling threshold.
Ombudsman clause for multiple-award IDIQs
Insert FAR 52.216-32, Task-Order and Delivery-Order Ombudsman, in solicitations and contracts for multiple-award IDIQs. Use Alternate I when the contract will be available for use by multiple agencies, and the ordering activity must complete the notice and order requirements when placing orders under such contracts.
Responsibilities
Contracting Officer
Select and insert the correct clause or provision based on the contemplated contract type and any special conditions. The contracting officer must also modify provisions to state the estimated number of awards where required, use the proper alternates for requirements contracts, and include Alternate I and complete the required notice/order language when placing orders under a multiple-agency contract.
Agency
Ensure acquisition planning and solicitation preparation align with the intended contract structure, including multiple-award strategy, advisory and assistance services thresholds, market research requirements, and any agency-specific substantial bundling threshold considerations.
Contractor
Review the solicitation and contract clauses to understand ordering rights, order limitations, award structure, and any special requirements that affect performance, competition for orders, or acceptance of orders under the contract.
Ordering Activity Contracting Officer
When placing orders under a multiple-award contract available for use by multiple agencies, complete paragraph (d)(2) and include Alternate I in the notice of intent to place an order and in the resulting order, as required by the clause.
Practical Implications
Clause selection is not optional; it must match the contract type and acquisition facts, or the solicitation/contract may be noncompliant with FAR Part 16.
The alternates to the Requirements clause are easy to miss, especially when subsistence, brand-name products, partial set-asides, or both are involved.
Multiple-award strategies require extra attention to the estimated number of awards, the advisory and assistance services exception, and the ombudsman clause for task-order and delivery-order disputes.
Related requirements in FAR Parts 7 and 10 can trigger additional provisions even though they are referenced rather than restated here.
For contractors, these clauses affect how orders are competed, whether orders can be limited, and what administrative remedies or notice procedures apply under the contract.
Official Regulatory Text
(a) Insert the clause at 52.216-18 , Ordering, in solicitations and contracts when a definite-quantity contract, a requirements contract, or an indefinite-quantity contract is contemplated. (b) Insert a clause substantially the same as the clause at 52.216-19 , Order Limitations, in solicitations and contracts when a definite-quantity contract, a requirements contract, or an indefinite-quantity contract is contemplated. (c) Insert the clause at 52.216-20 , Definite Quantity, in solicitations and contracts when a definite-quantity contract is contemplated. (d) (1) Insert the clause at 52.216-21 , Requirements, in solicitations and contracts when a requirements contract is contemplated. (2) If the contract is for nonpersonal services and related supplies and covers estimated requirements that exceed a specific Government activity’s internal capability to produce or perform, use the clause with its Alternate I. (3) If the contract includes subsistence for both Government use and resale in the same Schedule, and similar products may be acquired on a brand-name basis, use the clause with its Alternate II (but see paragraph (d)(5) of this section). (4) If the contract involves a partial small business set-aside, use the clause with its Alternate III (but see paragraph (d)(5) of this section). (5) If the contract- (i) Includes subsistence for Government use and resale in the same schedule and similar products may be acquired on a brand-name basis; and (ii) Involves a partial small business set-aside, use the clause with its Alternate IV. (e) Insert the clause at 52.216-22 , Indefinite Quantity, in solicitations and contracts when an indefinite-quantity contract is contemplated. (f) Insert the provision at 52.216-27 , Single or Multiple Awards, in solicitations for indefinite-quantity contracts that may result in multiple contract awards. Modify the provision to specify the estimated number of awards. Do not use this provision for advisory and assistance services contracts that exceed 3 years and $20 million (including all options). (g) Insert the provision at 52.216-28 , Multiple Awards for Advisory and Assistance Services, in solicitations for task-order contracts for advisory and assistance services that exceed 3 years and $20 million (including all options), unless a determination has been made under 16.504 (c)(2)(i)(A). Modify the provision to specify the estimated number of awards. (h) See 10.001 (d) for insertion of the clause at 52.210-1 , Market Research, when the contract is over $7.5 million for the procurement of items other than commercial products or commercial services. (i) See 7.107-6 for use of 52.207-6 , Solicitation of Offers from Small Business Concerns and Small Business Teaming Arrangement or Joint Ventures (Multiple-Award Contracts) in solicitations for multiple-award contracts above the substantial bundling threshold of the agency. (j) Insert the clause at 52.216-32 , Task-Order and Delivery-Order Ombudsman, in solicitations and contracts when a multiple-award indefinite-delivery indefinite-quantity contract is contemplated. Use the clause with its Alternate I when the contract will be available for use by multiple agencies (e.g., Governmentwide acquisition contracts or multi-agency contracts). When placing orders under the multiple-award contract available for use by multiple agencies, the ordering activity's contracting officer shall complete paragraph (d)(2) and include Alternate I in the notice of intent to place an order, and in the resulting order.