1512 Special Contracting Methods

Question 1

When is an indefinite delivery contract appropriate?

Answer 1

Under certain conditions the Government may not be able to specify its required delivery and/or quantity or may not have sufficient funds for obligation of the entire needed quantity at that time.

Question 2

What are the three types of indefinite delivery contracts?

Answer 2

• Definite Quantity
• Requirements
• Indefinite Quantity

Question 3

What is a Definite Quantity contract?

Answer 3

Provides for delivery of a definite quantity of specific supplies or services for a fixed period, with deliveries or performance to be scheduled at designated locations upon order. Exact quantity is known. Exact times/places unknown

Question 4

What is a Requirements contract?

Answer 4

A contract that is appropriate for acquiring any supplies or services when the Government anticipates recurring requirements but cannot predetermine the precise quantities of supplies or services that designated Government activities will need during a definite period

Question 5

What is a Indefinite Quantity contract?

Answer 5

An IDIQ contract provides for an indefinite quantity, within stated limits, of supplies or services within a fixed period. The Government must order and contractor furnish a stated minimum. If ordered, the contractor must furnish any additional quantities, not to exceed the stated maximum

Question 6

What is an option?

Answer 6

Contract when the Contracting officer may exercise options to continue the contract only after determining that it meets the requirement and the needs of the army

Question 7

What requirements must be fulfilled to exercise an option?

Answer 7

1. Funds are available
2. Option fulfills an existing need
3. Option is the most advantageous method of fulfilling the need
4. Option was synopsized IAW FAR Part 5
5. Determination and Findings
   * Supply/Service contracts will not exceed 5 years (Base year plus 4 option years)

Question 8

What is a multiyear contract?

Answer 8

Multiyear contract” means a contract for the purchase of supplies or services for more than 1, but not more than 5, program years and requires congressional approval in the president’s budget and has a cancellation ceiling.

Question 9

What is a multiple year contract?

Answer 9

• Not the same as Multi-year contracts
• May be IDIQ contracts or contracts with annual options
• Does NOT require Congressional Approval
• Not to exceed 5 years

Question 10

How long can a Supply/Service contract last?

Answer 10

Will not exceed 5 years (Base year plus 4 option years)