Indefinite-delivery contracts are used when the desired period of performance is known, but the exact time of delivery is unknown at the time of award. These contracts establish:
Indefinite-delivery contracts typically apply to contracts for products. For example, if the Postal Service purchases a high-resolution printer, it may establish an indefinite-delivery contract for future toner purchases for the printer from the supplier to reduce administrative lead time and inventory investment.
Indefinite-delivery contracts may provide for delivery of a definite quantity, an indefinite quantity within a minimum and maximum, or the Postal Service’s requirements. During the contract term, delivery orders are issued by purchasing organizations or orderors.
The pricing structure of any normal contract type can be used for orders against indefinite-delivery contracts. Fixed-price orders are preferred unless the orders cannot be accurately priced before issuing each order. In that case, T&M or labor-hour orders are preferred. The pricing mechanism may be the judgment of the CO at the time of issuing each order. The CO, in that case, must ensure that the contract clearly provides for each type of pricing. In addition, if so desired by the purchase⁄SCM team, the contract may provide for alternative pricing for each order (e.g., an order may be placed at a fixed-price or at a T&M rate).
Definite-quantity contract — A definite-quantity contract provides for a definite quantity of specific supplies or services during the contract period, with deliveries to designated locations when ordered. All definite-quantity contracts must include Clause 2-41: Definite Quantity.
Indefinite-quantity contract — An indefinite-quantity contract provides for an indefinite quantity of specific supplies or services, within a stated minimum (must not exceed known requirements) and maximum (must be realistic) quantity, to be delivered during the contract period to designated locations when ordered. It is used when precise requirements for supplies or services ordered over the term of the contract, above known minimums, cannot be determined. The minimum and maximum are provided to limit the pricing risk to the supplier. Contract maximums may be exceeded upon the mutual agreement of the Postal Service and the supplier. All indefinite-quantity contracts must include Clause 2-42: Indefinite Quantity.
Requirements contract — A requirements contract provides for filling all (or specified portions) of actual purchase requirements of designated activities for specific supplies and services to be delivered as ordered over the term of the contract. It is used:
A requirements contract is preferred when the purchase⁄SCM team decides to award a requirements contract to only one source and requirements can be estimated with reasonable accuracy. The solicitation and contract must state an estimated total quantity and, if feasible, the maximum limit of the supplier’s obligation to deliver and the Postal Service’s obligation to order. The total-quantity estimate must be as realistic as possible, based on records of previous requirements and current information. The contract may specify minimum or maximum quantities for individual delivery orders and a maximum that may be ordered during a specified time.
When a requirements contract is for repair, modification, or overhaul of Postal Service property, the solicitation must state that failure of the Postal Service to furnish such items in the amounts described as “estimated” or “maximum” will not entitle the supplier to any price adjustment under the Postal Service Property clause. All requirements contracts must include Clause 2-43: Requirements.
All delivery-order, task-order, and definite-order contracts must include Clause 2-39: Ordering and Clause 2-40: Delivery-Order Limitations.
