FAR 4.1005-2—Exceptions.
Plain-English Summary
FAR 4.1005-2 explains the main exceptions to the normal requirement to populate certain contract line item data elements in the procurement instrument. It covers three major areas: indefinite-delivery contracts, item description and product or service codes (PSC), and single unit price or single total price requirements. In practice, this section recognizes that some information is not known at the time of base award and can only be finalized when an order is issued, especially under IDIQ and requirements contracts. It also allows a more flexible line-item structure when detailed identification is captured in deliverable subline items, and it permits pricing structures that do not fit a simple single-price model for certain contract types and service arrangements. The purpose is to keep contract writing accurate and workable without forcing contracting officers to enter placeholder data that would be misleading or impossible to know at award. For contractors and contracting officers, the practical significance is that these exceptions affect how the contract is built, how orders are issued, and how pricing and descriptions are documented for auditability and downstream administration.
Key Rules
Order-level data for IDCs
For indefinite-delivery contracts, certain data elements are not known at the time of the base contract award and must instead be provided when each order is issued. These include accounting classification, delivery date and destination, or period and place of performance.
IDIQ and requirements quantity exception
IDIQ and requirements contracts may omit the quantity at the line-item level for the base award if the total contract minimum and maximum, or the estimate for requirements contracts, is stated. This allows the contract to be awarded before exact order quantities are known.
Multiple-award IDIQ pricing exception
Multiple-award IDIQ contracts awarded under the cited simplified acquisition or source selection procedures may omit price or cost at the line-item or subline-item level for the contract award, as long as the total contract minimum and maximum is stated. The contract still must comply with the underlying IDIQ structure requirements.
Narrative description allowed
Item description and PSC are not required in the line item when associated deliverable subline items contain the actual detailed identification. In that case, the line item should use a general narrative description rather than duplicating the detail.
Flexible pricing structures
A single unit price or single total price is not required when priced deliverable subline items exist, when the line item or subline item is not separately priced, or when the acquisition uses cost-reimbursement, time-and-materials, or labor-hour pricing. The rule also allows firm prices for elements of the total price when the actual number of elements is unknown until performance.
Estimated or firm total amounts
For service contracts where the number of priced elements is not known in advance, the contracting officer may structure the instrument to show a firm or estimated total amount for each line item. This supports practical administration when the contract is based on labor hours or similar variable quantities.
Responsibilities
Contracting Officer
Structure the contract or order so that omitted data elements are only omitted when this section allows it. The contracting officer must ensure required information is supplied at the order level for indefinite-delivery contracts, state the minimum and maximum or estimate where required, use general narrative descriptions when detailed data is carried in subline items, and choose a pricing structure that matches the contract type and the actual pricing basis.
Contractor
Provide accurate pricing, quantity, and descriptive information in the format required by the contract or order. The contractor must understand that some data may appear at the order level rather than the base contract level and should not assume omitted line-item data means the requirement is absent.
Agency/Contract Writing System Users
Enter contract data in a way that reflects the permitted exceptions and preserves traceability between line items, subline items, and orders. They must avoid forcing unnecessary fields into the base award when the regulation permits later completion at the order stage.
Practical Implications
This section is especially important for IDIQ and requirements contracts because it prevents the base award from being cluttered with unknown quantities, destinations, or performance periods that will only be known later.
A common pitfall is omitting required minimums, maximums, or estimates when using the quantity exception; the exception does not eliminate those core contract structure requirements.
Another frequent mistake is treating a narrative line-item description as sufficient without ensuring the associated subline items contain the actual detailed identification needed for administration and reporting.
Pricing must match the contract type: trying to force a single unit price into a cost-reimbursement or labor-hour arrangement can create inaccurate records and downstream invoice or audit problems.
Contracting officers should make sure the contract writing system and order documents clearly show where the missing data will be supplied, so the award remains compliant and easy to administer.
Official Regulatory Text
(a) Indefinite-delivery contracts - (1) General . The following required data elements are not known at time of issuance of an indefinite-delivery contract, but shall be provided in each order at the time of issuance: accounting classification, delivery date and destination, or period and place of performance. (2) Indefinite-delivery indefinite-quantity (IDIQ) and requirements contracts . (i) IDIQ and requirements contracts may omit the quantity at the line item level for the base award provided that the total contract minimum and maximum, or the estimate, respectively, is stated. (ii) Multiple-award IDIQ contracts awarded using the procedures at 13.106-1 (a)(2)(iv)(A) or 15.304 (c)(1)(ii)(A) may omit price or cost at the line item or subline item level for the contract award, provided that the total contract minimum and maximum is stated (see 16.504 (a)(1)). (b) Item description and PSC . These data elements are not required in the line item if there are associated deliverable subline items that include the actual detailed identification. When this exception applies, use a general narrative description for the line item. (c) Single unit price or single total price . The requirement for a single unit price or single total price at the line item level does not apply if any of the following conditions are present: (1) There are associated deliverable subline items that are priced. (2) The line item or subline item is not separately priced. (3) The supplies or services are being acquired on a cost-reimbursement, time-and-materials, or labor-hour basis. (4) The procurement instrument is for services and firm prices have been established for elements of the total price, but the actual number of the elements is not known until performance ( e.g. , a labor-hour contract for maintenance/repair). The contracting officer may structure these procurement instruments to reflect a firm or estimated total amount for each line item.