FAR 52.216-20—Definite Quantity.
Plain-English Summary
FAR 52.216-20, Definite Quantity, is the clause used in a definite-quantity, indefinite-delivery contract to tell the parties how ordering and performance work. It covers the contract’s basic structure, the Government’s obligation to order the stated quantity of supplies or services, the contractor’s obligation to furnish them when ordered, where delivery or performance must occur, how many orders may be issued, whether orders may go to multiple destinations or locations, and how orders placed during the contract’s effective period are handled if they are not completed before that period ends. In practice, the clause is important because it converts the schedule’s stated quantity into a binding ordering commitment and clarifies that the contract remains the governing instrument for orders issued on time even if performance finishes later. It also works together with the Ordering clause, the Schedule, and any Order Limitations clause to define the scope and limits of the Government’s ordering authority. The final proviso, including the inserted date, is especially significant because it can extend or cap the contractor’s delivery obligation beyond the contract’s stated effective period. For contractors and contracting officers, this clause is a core risk-allocation and administration provision: it affects production planning, delivery scheduling, funding and logistics planning, and whether the Government has met its minimum ordering commitment.
Key Rules
Definite quantity contract
This clause establishes a definite-quantity, indefinite-delivery contract for the supplies or services identified in the Schedule. That means the contract is not for an open-ended requirement; it is for a specific quantity that the Government must order during the contract period.
Government must order stated quantity
The Government is required to order the quantity specified in the Schedule, and the contractor is required to furnish that quantity when ordered. This is the central commitment of a definite-quantity contract and distinguishes it from arrangements where the Government only promises to order a minimum amount.
Delivery follows issued orders
Delivery or performance must occur at the locations designated in orders issued under the Ordering clause and the Schedule. The actual order controls the place and timing of performance, so the contractor must follow each valid order’s instructions.
No order count limit unless stated
There is no limit on the number of orders the Government may issue, except for any quantity limitations in the Order Limitations clause or in the Schedule. The Government may also direct deliveries to multiple destinations or performance at multiple locations in a single order.
Orders survive contract period
An order issued during the contract’s effective period remains valid even if it is not completed before that period ends. The contractor must complete the order within the time specified in the order, and the contract continues to govern the parties’ rights and obligations for that order as if performance had been completed during the contract period.
Delivery cutoff date applies
The clause includes a blank date after which the contractor is not required to make deliveries under the contract. This date must be inserted carefully because it can limit how long the contractor remains obligated to deliver, even for orders issued during the effective period.
Responsibilities
Contracting Officer
Insert the clause when appropriate for a definite-quantity, indefinite-delivery contract and ensure the Schedule, Ordering clause, Order Limitations clause, and the inserted delivery cutoff date are consistent. The contracting officer must also issue orders within the contract’s effective period and within any stated quantity or ordering limits.
Government
Order the full quantity stated in the Schedule and issue orders in accordance with the contract’s ordering procedures. The Government may place multiple orders and direct performance to multiple destinations, but it must stay within any express limitations in the contract.
Contractor
Furnish the ordered supplies or services when valid orders are issued and perform or deliver to the locations designated in those orders. The contractor must complete orders placed during the effective period according to the order’s schedule, subject to the clause’s delivery cutoff date.
Schedule/Ordering Clause Drafter
Define the quantity, effective period, ordering procedures, and any order limitations clearly so the clause can operate without conflict. The drafter must ensure the inserted date and any multiple-destination or multiple-location expectations are unambiguous.
Practical Implications
This clause creates a firm ordering obligation, so contractors should plan capacity, inventory, labor, and logistics around the stated quantity rather than treating the contract as merely potential business.
The inserted cutoff date is a common source of error; if it is omitted, inconsistent, or too restrictive, it can create disputes over whether late deliveries are required or barred.
Because the Government may issue many orders and send them to multiple destinations, contractors should track order volume, shipping instructions, and cumulative quantities carefully to avoid over- or under-performance.
Orders issued on time remain enforceable even if performance extends beyond the contract period, so both sides should distinguish between the contract’s effective period and the completion date for individual orders.
This clause must be read with the Ordering clause, Schedule, and any Order Limitations clause; inconsistencies among those provisions can create administration problems and disputes over the Government’s authority to order and the contractor’s duty to perform.
Official Regulatory Text
As prescribed in 16.506 (c) , insert the following clause: Definite Quantity (Oct 1995) (a) This is a definite-quantity, indefinite-delivery contract for the supplies or services specified, and effective for the period stated, in the Schedule. (b) The Government shall order the quantity of supplies or services specified in the Schedule, and the Contractor shall furnish them when ordered. Delivery or performance shall be at locations designated in orders issued in accordance with the Ordering clause and the Schedule. (c) Except for any limitations on quantities in the Order Limitations clause or in the Schedule, there is no limit on the number of orders that may be issued. The Government may issue orders requiring delivery to multiple destinations or performance at multiple locations. (d) Any order issued during the effective period of this contract and not completed within that time shall be completed by the Contractor within the time specified in the order. The contract shall govern the Contractor’s and Government’s rights and obligations with respect to that order to the same extent as if the order were completed during the contract’s effective period; provided, that the Contractor shall not be required to make any deliveries under this contract after ________________ [ insert date ] . (End of clause)