FAR 52.204-22—Alternative Line Item Proposal.
Plain-English Summary
FAR 52.204-22, Alternative Line Item Proposal, is a solicitation provision that addresses how offerors may propose different line-item structures than the ones the Government included in the solicitation. It covers the Government’s recognition that solicitation line items may not match an offeror’s normal pricing, ordering, invoicing, or accounting practices; the risk that mismatched line items can create acceptance and payment problems; the offeror’s ability to submit one or more alternative proposals with alternative line items; the requirement that any alternative line items be consistent with FAR subpart 4.10 on uniform contract line item structure; and the Government’s sole discretion to accept or reject the alternative approach. It also warns that offers not complying with the solicitation’s line-item requirements may be found nonresponsive or unacceptable. In practice, this provision is meant to improve pricing and administration by allowing a better fit between the solicitation and commercial or contractor business practices, while preserving the Government’s control over the final contract structure. For contractors, it creates an opportunity to propose a more workable line-item arrangement, but not a right to have it accepted. For contracting officers, it is a tool to reduce downstream issues with delivery, acceptance, invoicing, and payment, while maintaining compliance with FAR line-item rules.
Key Rules
Government may invite alternatives
The provision expressly recognizes that the solicitation’s line items may not align with the offeror’s practices and invites the offeror to propose alternative line items. The purpose is to make the resulting contract more economically and administratively advantageous to both parties.
Alternative proposals are optional
An offeror may submit one or more additional proposals with alternative line items, but it is not required to do so. The offeror may still submit a conforming offer under the solicitation’s stated line items.
Alternative line items must comply
Any alternative line items must be consistent with FAR subpart 4.10, which governs uniform contract line item structure. The provision does not permit arbitrary restructuring that would conflict with required line-item standards.
Government decides unilaterally
Acceptance of an alternative proposal is solely at the Government’s discretion. The offeror cannot compel acceptance, and the Government may choose the original solicitation structure instead.
Noncompliance can be fatal
Offers that do not comply with the solicitation’s line-item requirements may be found nonresponsive in sealed bidding or otherwise unacceptable in negotiated procurements. Offerors therefore must ensure that any deviation is either permitted and accepted or that a compliant offer is also provided.
Purpose is administrative efficiency
The provision exists to reduce problems in acceptance and payment that can arise when contract line items do not match how the contractor actually performs, bills, or tracks work. It is intended to improve contract administration, not to relax core solicitation requirements.
Responsibilities
Contracting Officer
Decide whether to include this provision in the solicitation when appropriate under FAR 4.1008. Evaluate any alternative line-item proposal, determine whether it complies with FAR subpart 4.10, and decide whether acceptance would be advantageous to the Government. Ensure the final contract line-item structure supports proper ordering, acceptance, invoicing, and payment.
Offeror/Contractor
Review the solicitation line items and determine whether they align with the offeror’s business practices. If desired, submit one or more alternative proposals with alternative line items that remain consistent with FAR subpart 4.10. Also ensure that at least one compliant offer is submitted if the solicitation requires compliance, because nonconforming line items may lead to rejection as nonresponsive or unacceptable.
Agency
Use the provision only when it is appropriate to invite alternative line-item structures and when doing so will support better administration. Maintain procurement and contract administration practices that can accommodate the accepted line-item structure without creating payment or acceptance problems.
Practical Implications
Contractors should not assume the Government will accept a preferred billing or pricing structure; the alternative is only a proposal, not a negotiated entitlement.
If the solicitation’s line items do not match the contractor’s normal practices, the contractor should consider whether to submit both a compliant offer and an alternative proposal to avoid rejection.
Contracting officers should evaluate whether alternative line items will actually improve administration, because poorly structured line items can create downstream issues with funding, acceptance, and invoice processing.
A common pitfall is proposing line items that conflict with FAR subpart 4.10 requirements or that obscure deliverables, quantities, or pricing in a way that makes evaluation difficult.
This provision is especially important where mismatched line items could cause problems in receiving, inspection, partial deliveries, or invoice approval, so both sides should think beyond award and consider how the contract will be administered day to day.
Official Regulatory Text
As prescribed in 4.1008 , insert the following provision: Alternative Line Item Proposal (Jan 2017) (a) The Government recognizes that the line items established in this solicitation may not conform to the Offeror’s practices. Failure to correct these issues can result in difficulties in acceptance of deliverables and processing payments. Therefore, the Offeror is invited to propose alternative line items for which bids, proposals, or quotes are requested in this solicitation to ensure that the resulting contract is economically and administratively advantageous to the Government and the Offeror. (b) The Offeror may submit one or more additional proposals with alternative line items, provided that alternative line items are consistent with subpart 4.10 of the Federal Acquisition Regulation. However, acceptance of an alternative proposal is a unilateral decision made solely at the discretion of the Government. Offers that do not comply with the line items specified in this solicitation may be determined to be nonresponsive or unacceptable. (End of provision)