FAR 4.1005-1—Required data elements.
Plain-English Summary
FAR 4.1005-1 sets the minimum data elements that must appear for each contract line item or subline item in the schedule, or in a comparable section of the procurement instrument. It covers the required line item number, description of what is being purchased, Product or Service Code (PSC), accounting classification citation, and the pricing data that must be shown depending on whether the item is fixed-price or cost-reimbursement. It also requires mixed-type contracts to identify the contract type for each line item, and it requires each deliverable line item or deliverable subline item to have its own delivery schedule, destination, period of performance, or place of performance expressly stated. Finally, it addresses how other contract terms and conditions must be tied to specific line items when they do not apply to the contract as a whole. In practice, this section exists to make contracts machine-readable, support accurate payment and funding, reduce ambiguity about what is being bought and when it is due, and improve traceability across ordering, invoicing, accounting, and administration.
Key Rules
Minimum line item data
Each line item or subline item must include, as separate data elements, the line item number, description, PSC, accounting classification citation, and the required pricing information for the contract type. These elements must appear in the schedule or a comparable section of the procurement instrument unless an exception in 4.1005-2 applies.
Accounting citation requirements
For deliverable line items and deliverable subline items, the accounting classification citation must be shown, and if more than one accounting classification applies to a single deliverable, the schedule must show the dollar amount charged to each classification. Informational subline items do not require an accounting classification citation.
Fixed-price pricing elements
For fixed-price line items, the schedule must show unit of measure, quantity, unit price, and total price. These elements must be stated clearly enough to support billing, acceptance, and payment.
Cost-reimbursement pricing elements
For cost-reimbursement line items, the schedule must show unit of measure, quantity, estimated cost, fee if any, and total estimated cost plus fee. This ensures the funding and ceiling structure is transparent and supports administration of reimbursable work.
Mixed contract type identification
If a contract includes fixed-price, time-and-materials, labor-hour, or cost-reimbursement line items, the contract type for each line item must be identified in the schedule or comparable section. This helps prevent payment errors and confusion about which invoicing and administration rules apply to each item.
Separate delivery terms for deliverables
Each deliverable line item or deliverable subline item must have its own delivery schedule, destination, period of performance, or place of performance expressly stated. If a line item has deliverable subline items, those delivery terms must be stated at the subline item level, not just at the parent line item level; 'as required' is sufficient if it clearly states the delivery term.
Line-item-specific applicability of clauses
If a clause, payment instruction, or other contract term does not apply to the entire contract, the contract must specify which line items it applies to. This prevents overbroad application of terms and supports correct performance and payment administration.
Responsibilities
Contracting Officer
Ensure the schedule or comparable procurement instrument section contains all required line-item data elements, including numbering, descriptions, PSCs, accounting citations, pricing data, contract type identification, and delivery/performance terms. The contracting officer must also make sure any clause or payment instruction that applies only to certain line items is clearly limited to those items.
Contract Specialist / Contract Writer
Draft the line-item structure so each required data element is separately identified and internally consistent across the schedule, funding data, and delivery terms. The contract writer must avoid vague or incomplete line-item descriptions and ensure subline item-level detail is used when required.
Program Office / Requiring Activity
Provide accurate descriptions of the supplies or services, required quantities, delivery schedules, destinations, and performance locations or periods. The requiring activity should also help determine whether items are deliverable or informational and whether multiple accounting classifications apply.
Finance / Budget / Accounting Personnel
Provide correct accounting classification citations and, where multiple funding lines support one deliverable, the dollar amounts associated with each classification. These personnel must ensure the funding structure is reflected accurately in the contract schedule.
Contractor
Review the line-item structure to understand what is being purchased, how it is priced, what type of contract applies to each line item, and where and when performance or delivery is due. The contractor must use the stated line-item terms for invoicing, performance planning, and compliance with any line-item-specific clauses.
Payment Office / Invoice Reviewer
Use the line-item structure, contract type identification, and applicable line-item terms to validate invoices and determine whether billed amounts, quantities, and delivery/performance status align with the contract.
Practical Implications
This section is critical for clean ordering and payment because missing or unclear line-item data can cause invoice rejects, funding mismatches, or disputes over what was ordered. A contract may be legally valid but still difficult to administer if the line items are not structured correctly.
A common pitfall is putting delivery terms only at the parent line-item level when the real obligation is at the subline-item level. That can create ambiguity about what is due, where it is due, and when acceptance or payment should occur.
Another frequent error is failing to distinguish fixed-price from cost-reimbursement or other contract types at the line-item level in mixed contracts. Without that distinction, the wrong payment rules or invoice expectations may be applied.
Accounting citations must align with the actual funding structure, especially when one deliverable is funded by multiple accounts. If the dollar amounts by accounting classification are not shown, funding and audit issues can arise.
Contract terms that apply only to some items must be tied to those items explicitly. Otherwise, parties may assume a clause applies broadly, which can lead to performance problems, incorrect invoicing, or unnecessary disputes.
Official Regulatory Text
(a) Except as provided in 4.1005-2 , each line item or subline item shall include in the schedule (described at 12.303 (b)(4), 14.201-2 , or 15.204-2 , or in a comparable section of the procurement instrument), at a minimum, the following information as separate, distinct data elements: (1) Line item or subline item number established in accordance with agency procedures. (2) Description of what is being purchased. (3) Product or Service Code (PSC). (4) Accounting classification citation. (i) Line items or deliverable subline items. If multiple accounting classifications for a single deliverable apply, include the dollar amount for each accounting classification in the schedule (or a comparable section of the procurement instrument). (ii) Informational subline items. An accounting classification citation is not required. (See 4.1004 ). (5) (i) For fixed-price line items: (A) Unit of measure. (B) Quantity. (C) Unit price. (D) Total price. (ii) For cost-reimbursement line items: (A) Unit of measure. (B) Quantity. (C) Estimated cost. (D) Fee (if any). (E) Total estimated cost plus any fee. (b) If a contract contains a combination of fixed-price, time-and-materials, labor-hour, or cost-reimbursable line items, identify the contract type for each line item in the schedule (or a comparable section of the procurement instrument) to facilitate payment. (c) Each deliverable line item or deliverable subline item shall have its own delivery schedule, destination, period of performance, or place of performance expressly stated in the appropriate section of the procurement instrument ("as required" constitutes an expressly stated delivery term). When a line item has deliverable subline items, the delivery schedule, destination, period of performance, or place of performance shall be identified at the subline item level, rather than the line item level. (d) Terms and conditions in other sections of the contract (such as contract clauses or payment instructions) shall also specify applicability to individual line items if not applicable to the contract as a whole.