Common use of Requirements Contract Type Clause in Contracts

Requirements Contract Type. A Requirements contract type (FAR Subpart 16.503) provides for filling all actual purchase requirements of designated Government activities for services or supplies during a specified contract period, with performance or deliveries to be scheduled by placing orders with the Contractor. The contracting officer states a realistic estimated total quantity in the Task Order solicitation and the resulting order. All Requirements contract type CLINS within a Task Order must include a defined scope with all items priced at time of award, i.e., Fixed-priced by unit/rate, size or type as defined by the issuing agency. Established pricing is not subject to any adjustment on the basis of the contractor’s cost experience in performing the Task Order, and established Contractor prices will not be subsequently discounted at the Government’s request once negotiated at Task Order award. The agency will direct the Contractor to deliver a specified quantity of the in-scope Government requirement by use of a Call, which activates a pre-priced CLIN or SubCLIN during the term of the Task Order. Requirements Task Order type under an IDIQ Master Contract: A Requirements contract type Task Order is a single contract award issued under this indefinite-delivery, indefinite-quantity (IDIQ) Master Contract vehicle. Executing and funding individual CLINS and SubCLINS under this Task Order type are not considered to be second-tier instruments issued under the awarded Task Order. Also, the agency's clearly defined Requirements Task Order procurement, as with any contract type listed in Section B.9, must be within the scope of the Master Contract’s Section C. Pursuant to the terms and conditions of this Master Contract, the use of Requirements contract types of Task Orders is further restricted to the following: The term of the Task Order (including Options) should not exceed the remaining ordering period of the Master Contract (including the Option) at the time of Requirements Task Order award.