[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

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

[CITE: 48CFR11.701]



[Page 192]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 11_DESCRIBING AGENCY NEEDS--Table of Contents

 

                   Subpart 11.7_Variation in Quantity

 

Sec. 11.701  Supply contracts.



    Source: 48 FR 42159, Sept. 19, 1983, unless otherwise noted. 

Redesignated at 60 FR 48241, Sept. 18, 1995.





    (a) A fixed-price supply contract may authorize Government 

acceptance of a variation in the quantity of items called for if the 

variation is caused by conditions of loading, shipping, or packing, or 

by allowances in manufacturing processes. Any permissible variation 

shall be stated as a percentage and it may be an increase, a decrease, 

or a combination of both; however, contracts for subsistence items may 

use other applicable terms of variation in quantity.

    (b) There should be no standard or usual variation percentage. The 

overrun or underrun permitted in each contract should be based upon the 

normal commercial practices of a particular industry for a particular 

item, and the permitted percentage should be no larger than is necessary 

to afford a contractor reasonable protection. The permissible variation 

shall not exceed plus or minus 10 percent unless a different limitation 

is established in agency regulations. Consideration shall be given to 

the quantity to which the percentage variation applies. For example, 

when delivery will be made to multiple destinations and it is desired 

that the quantity variation apply to the item quantity for each 

destination, this requirement must be stated in the contract.

    (c) Contractors are responsible for delivery of the specified 

quantity of items in a fixed-price contract, within allowable 

variations, if any. If a contractor delivers a quantity of items in 

excess of the contract requirements plus any allowable variation in 

quantity, particularly small dollar value overshipments, it results in 

unnecessary administrative costs to the Government in determining 

disposition of the excess quantity. Accordingly, the contract may 

include the clause at 52.211-17, Delivery of Excess Quantities, to 

provide that--

    (1) Excess quantities of items totaling up to $250 in value may be 

retained without compensating the contractor; and

    (2) Excess quantities of items totaling over $250 in value may, at 

the Government's option, be either returned at the contractor's expense 

or retained and paid for at the contract unit price.



[48 FR 42159, Sept. 19, 1983, as amended at 54 FR 34753, Aug. 21, 1989; 

62 FR 40236, July 25, 1997]