FAR 52.213-3—Notice to Supplier.
Plain-English Summary
FAR 52.213-3, Notice to Supplier, is a short clause used in simplified acquisition purchases to tell the supplier how the order works and what to do if the supplier cannot meet it exactly as written. It addresses four main subjects: when the order becomes a firm order, where invoices must be sent, what the supplier must do if it cannot perform exactly in accordance with the order, and the requirement to notify the Contracting Officer immediately with a quotation if performance cannot be accepted as ordered. In practice, the clause is meant to prevent misunderstandings in low-dollar, streamlined buys by making clear that the supplier should not simply substitute terms or proceed on assumptions. It also protects the Government by requiring prompt notice when the supplier cannot comply, so the Contracting Officer can decide whether to modify the order, obtain a revised quotation, or take another procurement action. The clause is especially important because simplified acquisitions often move quickly and may be issued without the same level of negotiation or formal contract administration used in larger procurements. It gives both sides a simple, practical communication rule: perform exactly as ordered if you can, invoice the Contracting Officer, and stop and report immediately if you cannot.
Key Rules
Firm order only if priced within limits
The order is a firm order only if the supplier’s price does not exceed the maximum line item or total price stated in the schedule. If the supplier’s price is higher than the stated limit, the order is not automatically binding as issued under this clause.
Invoice the Contracting Officer
The supplier must submit invoices to the Contracting Officer, not to some other office or person unless the contract administration instructions say otherwise. This helps ensure the Government receives and processes billing through the proper official channel.
Perform exactly as ordered
If the supplier can comply, it should perform in exact accordance with the order. The clause does not invite unilateral changes or substitutions by the supplier.
Withhold performance if unable to comply
If the supplier cannot perform exactly as ordered, it must withhold performance rather than proceed on a nonconforming basis. This prevents the supplier from delivering goods or services that do not match the Government’s requirements.
Notify immediately with quotation
When exact performance is not possible, the supplier must immediately notify the Contracting Officer and provide its quotation. This allows the Government to decide whether to accept revised terms, issue a modification, or seek another source.
Responsibilities
Contracting Officer
Issue the order within the applicable simplified acquisition framework, state the maximum line item or total price in the schedule, receive invoices, and promptly evaluate any notice from the supplier that exact performance is not possible. The Contracting Officer must decide whether to proceed, modify the order, or take other action based on the supplier’s quotation and the Government’s needs.
Supplier
Treat the order as firm only when its price is within the stated maximum, perform exactly as ordered if able, submit invoices to the Contracting Officer, and if unable to comply exactly, withhold performance and immediately notify the Contracting Officer with a quotation for the alternative performance.
Agency/Ordering Activity
Use the clause when prescribed for the applicable simplified acquisition purchase and ensure the order schedule clearly states the maximum line item or total price. The agency should also maintain clear internal procedures so invoices and supplier notices reach the right official without delay.
Practical Implications
This clause is designed for speed and simplicity, so the biggest operational issue is communication: if the supplier cannot meet the order exactly, it must stop and call the Contracting Officer right away.
A common pitfall is treating the order as fully binding when the supplier’s quoted price exceeds the schedule limit; the clause makes clear that the firm-order concept depends on staying within the stated maximum.
Another frequent issue is misdirected invoicing. Suppliers should send invoices to the Contracting Officer as instructed, or payment processing can be delayed.
Suppliers should not make substitutions or partial performance decisions on their own. If the requirement cannot be met exactly, the proper step is to withhold performance and submit a quotation for the revised approach.
For contracting officers, the practical value of the clause is that it creates an early warning system for nonconforming performance, allowing quick resolution before time and money are spent on the wrong item or service.
Official Regulatory Text
As prescribed in 13.302-5 (c) , insert the following clause: Notice to Supplier (Apr 1984) This is a firm order ONLY if your price does not exceed the maximum line item or total price in the Schedule. Submit invoices to the Contracting Officer. If you cannot perform in exact accordance with this order, Withhold Performance , and notify the Contracting Officer immediately, giving your quotation. (End of clause)