FAR 52.216-19—Order Limitations.
Plain-English Summary
FAR 52.216-19, Order Limitations, sets the minimum and maximum order boundaries for contracts that allow ordering of supplies or services over time, especially indefinite-delivery arrangements. It tells the Government when it is not obligated to place very small orders, and when the contractor is not obligated to accept very large orders or a rapid series of orders that exceed stated limits. The clause also addresses a special rule for requirements contracts: if a requirement exceeds the maximum-order limit, the Government does not have to place all of that requirement with the contractor. At the same time, the clause preserves flexibility by requiring the contractor to honor an oversized order unless it timely rejects the order in writing and explains why. In practice, this clause helps both sides manage workload, production planning, pricing assumptions, and supply chain risk by defining the order sizes the contract is intended to support. It is a key control mechanism for ordering under IDIQ-style contracts and requirements contracts, and it can affect whether an order is enforceable, whether the contractor must perform, and whether the Government may seek another source.
Key Rules
Minimum order threshold
If the Government needs supplies or services below the stated minimum order amount or quantity, it is not obligated to buy them under the contract, and the contractor is not obligated to provide them. This prevents the contract from being used for very small buys that fall outside the agreed economic range.
Maximum order limits
The contractor is not obligated to honor any single order above the stated maximum for one item, any combination of items above the stated combined maximum, or a series of orders from the same ordering office within the stated number of days that together exceed those limits. These limits must be filled in by the contracting activity and define the largest order the contract is intended to cover.
Requirements contract special rule
If the contract includes the Requirements clause at FAR 52.216-21, the Government does not have to place part of a requirement with the contractor when that requirement exceeds the maximum-order limitation. This protects the Government from being forced to split or place an oversized requirement under a contract that was not priced or structured for that volume.
Oversized orders must be honored unless rejected timely
Even if an order exceeds the maximum-order limitation, the contractor must still honor it unless the contractor returns the order to the ordering office within the specified number of days after issuance and gives written notice that it will not ship and explains the reasons. This means the contractor must act quickly if it intends to rely on the maximum-order protection.
Government may source elsewhere after rejection
If the contractor timely rejects an oversized order with the required written notice, the Government may obtain the supplies or services from another source. The clause therefore gives the Government a fallback option when the contract cannot or should not be used for that order.
Responsibilities
Contracting Officer
Set the minimum order amount, maximum order amounts, and the number of days for series-of-orders and rejection notice periods when the clause is used. Ensure the contract terms are clear enough for ordering offices and contractors to understand when orders are within or outside the contract’s intended scope.
Ordering Office / Government Buyer
Place orders within the stated limits when possible and recognize that very small orders may not be covered if they fall below the minimum. If a needed order exceeds the maximum and the contractor rejects it properly, obtain the supplies or services from another source.
Contractor
Accept and perform orders that are within the contract limits, and decide promptly whether to reject an oversized order. If rejecting an oversized order, return it within the required time and provide written notice stating the intent not to ship and the reasons.
Agency / Government
Use the clause to manage ordering strategy and avoid placing orders that are inconsistent with the contract’s stated economic and operational limits. For requirements contracts, avoid assuming the contractor must absorb a requirement that exceeds the maximum-order threshold.
Practical Implications
This clause is often overlooked until an order is too small or too large, so both sides should verify the stated dollar or quantity thresholds before issuing or accepting an order.
The contractor’s rejection window is critical; if the contractor misses the deadline or fails to give proper written notice, it may have to perform even on an oversized order.
For requirements contracts, the Government cannot rely on the contract to cover an entire requirement that exceeds the maximum-order limit, so acquisition planning must account for possible split sourcing or alternate procurement.
The clause helps prevent pricing and performance problems by keeping orders within the volume assumptions used to negotiate the contract, but it also creates a risk of disputes if the limits are left blank or are inconsistent with the ordering pattern.
Ordering offices should watch for repeated orders that, taken together within the stated days, exceed the limit, because the clause treats that series as a potential over-limit order even if each individual order is smaller.
Official Regulatory Text
As prescribed in 16.506 (b) , insert a clause substantially the same as follows: Order Limitations (Oct 1995) (a) Minimum order . When the Government requires supplies or services covered by this contract in an amount of less than _____________ [ insert dollar figure or quantity ] , the Government is not obligated to purchase, nor is the Contractor obligated to furnish, those supplies or services under the contract. (b) Maximum order . The Contractor is not obligated to honor- (1) Any order for a single item in excess of _____________ [ insert dollar figure or quantity ] ; (2) Any order for a combination of items in excess of ______________ [ insert dollar figure or quantity ] ; or (3) A series of orders from the same ordering office within _____________ days that together call for quantities exceeding the limitation in paragraph (b)(1) or (2) of this section. (c) If this is a requirements contract ( i.e., includes the Requirements clause at subsection 52.216-21 of the Federal Acquisition Regulation (FAR)), the Government is not required to order a part of any one requirement from the Contractor if that requirement exceeds the maximum-order limitations in paragraph (b) of this section. (d) Notwithstanding paragraphs (b) and (c) of this section, the Contractor shall honor any order exceeding the maximum order limitations in paragraph (b), unless that order (or orders) is returned to the ordering office within _____ days after issuance, with written notice stating the Contractor’s intent not to ship the item (or items) called for and the reasons. Upon receiving this notice, the Government may acquire the supplies or services from another source. (End of clause)