48 C.F.R. § 16.503

16.503 Requirements contracts.

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(a) Description. A requirements contract provides for filling all actual purchase requirements of designated Government activities for supplies or services during a specified contract period (from one contractor), with deliveries or performance to be scheduled by placing orders with the contractor.

(1) For the information of offerors and contractors, the contracting officer shall state a realistic estimated total quantity in the solicitation and resulting contract. This estimate is not a representation to an offeror or contractor that the estimated quantity will be required or ordered, or that conditions affecting requirements will be stable or normal. The contracting officer may obtain the estimate from records of previous requirements and consumption, or by other means, and should base the estimate on the most current information available.

(2) The contract shall state, if feasible, the maximum limit of the contractor's obligation to deliver and the Government's obligation to order. The contract may also specify maximum or minimum quantities that the Government may order under each individual order and the maximum that it may order during a specified period of time.

(b) Application. (1) A requirements contract may be 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.

(2) No requirements contract in an amount estimated to exceed $150 million (including all options) may be awarded to a single source unless a determination is executed in accordance with 16.504(c)(1)(ii)(D).

(c) Government property furnished for repair. When a requirements contract is used to acquire work (e.g., repair, modification, or overhaul) on existing items of Government property, the contracting officer shall specify in the Schedule that failure of the Government to furnish such items in the amounts or quantities described in the Schedule as estimated or maximum will not entitle the contractor to any equitable adjustment in price under the Government Property clause of the contract.

(d) Limitations on use of requirements contracts for advisory and assistance services. (1) Except as provided in paragraph (d)(2) of this section, no solicitation for a requirements contract for advisory and assistance services in excess of three years and $20 million (including all options) may be issued unless the contracting officer or other official designated by the head of the agency determines in writing that the services required are so unique or highly specialized that it is not practicable to make multiple awards using the procedures in 16.504.

(2) The limitation in paragraph (d)(1) of this section is not applicable to an acquisition of supplies or services that includes the acquisition of advisory and assistance services, if the contracting officer or other official designated by the head of the agency determines that the advisory and assistance services are necessarily incident to, and not a significant component of, the contract.

[48 FR 42219, Sept. 19, 1983, as amended at 56 FR 15150, Apr. 15, 1991; 60 FR 49725, Sept. 26, 1995; 71 FR 57367, Sept. 28, 2006; 73 FR 54010, Sept. 17, 2008; 75 FR 13421, Mar. 19, 2010; 75 FR 53133, Aug. 30, 2010; 80 FR 38297, July 2, 2015; 85 FR 62488, Oct. 2, 2020; 90 FR 41878, Aug. 27, 2025]

Notes of Decisions

Cited in 16 cases (2 in the last 5 years), 1992–2025 · leading case: Fed. Grp., Inc. v. United States, 67 Fed. Cl. 87 (Fed. Cl. 2005).

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Fed. Grp., Inc. v. United States, 67 Fed. Cl. 87 (Fed. Cl. 2005). · cites it 4× “48 C.F.R. § 16.503 ; see Bonneville Assocs.”

Varilease Tech. Grp., Inc. v. United States, 289 F.3d 795 (Fed. Cir. 2002). “; 48 C.F.R. § 16.503 (a). Nowhere in the contract is there language, express or implied, obligating the government to purchase its entire requirements for maintenance of agency-owned Unisys computers.”

Educators Assocs., Inc. v. United States, 41 Fed. Cl. 811 (Fed. Cl. 1998). · cites it 3× “See 48 C.F.R. § 16.503 (a)(1) (1997). 3 The estimate is not a warranty as to *816 quantity, see Shader Contractors, Inc.”

Datalect Comput. Servs., Ltd. v. United States, 40 Fed. Cl. 28 (Fed. Cl. 1997). · cites it 4× “See 48 C.F.R. § 16.503 (a)(1) (1996) (requiring a statement of estimated needs).”

Hi-Shear Tech. Corp. v. United States, 53 Fed. Cl. 420 (Fed. Cl. 2002). “Pursuant to the FAR, a requirements contract “provides for filling all actual purchase requirements of designated Government activities for specific supplies or services during a specified contract period, with deliveries to be scheduled by placing orders with the contractor.”

Medart, Inc. v. Richard G. Austin, Adm'r, Gen. Servs. Admin., 967 F.2d 579 (Fed. Cir. 1992). “” 48 C.F.R. § 16.503 (a)(1) (1991). This is precisely how the contracting officer formulated the estimates in this case.”

J. Cooper & Assocs., Inc. v. United States, 53 Fed. Cl. 8 (Fed. Cl. 2002). “at 1318-19 (citing 48 C.F.R. § 16.503 (a) (2000)); accord Medart, Inc.”

Precision Images, LLC v. United States, 79 Fed. Cl. 598 (Fed. Cl. 2007). “48 C.F.R. § 16.503 (a)(1). . There are three 1ypes of indefinite-delivery contracts: definite-quantity contracts, requirements contracts, and indefinite-quantity contracts.”

Agility Def. & Gov't Servs., Inc. v. United States, 847 F.3d 1345 (Fed. Cir. 2017). “48 C.F.R. § 16.503 . FAR 16.503(a)(1) reads: For the information of offerors and contractors, the contracting officer shall state a realistic estimated total quantity in the solicitation and resulting contract.”

Datalect Comput. Servs., Ltd. v. United States, 41 Fed. Cl. 720 (Fed. Cl. 1998). · cites it 2× “Pursuant to 48 C.F.R. § 16.503 (a)(1) (1996), the IFB and resulting contract contained an estimate of the government’s requirements based on the historical workload.”

Myers Investigative & Sec. Servs., Inc. v. United States, 47 Fed. Cl. 605 (Fed. Cl. 2000). “” 48 C.F.R. § 16.503 . Significantly, the solicitations state: C-1.”

Abatement Contracting Corp. v. United States, 58 Fed. Cl. 594 (Fed. Cl. 2003). “48 C.F.R. § 16.503 (1993). “A requirements contract required the contracting government entity to fill all of its actual requirements for supplies or services *604 that are specified in the contract, during the contract period, by purchases from the contract awardee.”

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