[Code of Federal Regulations]

[Title 41, Volume 2]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 41CFR101-25.101-4]



[Page 73]

 

           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT

 

          CHAPTER 101--FEDERAL PROPERTY MANAGEMENT REGULATIONS

 

PART 101-25_GENERAL--Table of Contents

 

                    Subpart 101-25.1_General Policies

 

Sec. 101-25.101-4  Supply through indefinite quantity requirement 

contracts.



    The following criteria shall govern in determining whether an item 

can be most advantageously supplied through the medium of indefinite 

quantity requirement contracts covering specific periods and providing 

for delivery to use points as needs arise:

    (a) The item shall be such a character that--

    (1) Handling on a storage and issue basis is not economically sound, 

under the criteria prescribed in Sec. 101-25.101-2;

    (2) Rate of use and frequency of ordering at use points is estimated 

to be sufficient to warrant the making of indefinite quantity 

requirement contracts;

    (3) It is either not feasible to forecast definite requirements for 

delivery to specific use points (as in the case of new items initially 

being introduced into a supply system), or no advantage accrues doing 

so; and

    (b) Industry distribution facilities are adequate properly to serve 

the use points involved; and

    (c) Conditions exist where any of the following factors requires the 

maintaining of indefinite quantity requirements contracts--

    (1) Advantage to the Government is greater than would be secured by 

definite quantity procurements by individual offices or agencies (the 

determining consideration being one of overall economy to the 

Government, rather than one of direct comparison of unit prices of 

individual items obtainable through other methods of supply); or no 

known procurement economies would be effected but the requirements of 

offices of agencies can best be served by indefinite quantity 

requirements contracts.

    (2) Acute competitive bidding problems exist because of highly 

technical matters which can best be met on a centralized contracting 

basis.

    (3) The item is proprietary or so complex in design, function, or 

operation as to be noncompetitive and procurement can best be performed 

on a centralized contracting basis.