ADP Contracts: Army Needs to Correct Budget Disclosure Deficiencies
Abstract
Under the Federal Acquisition Regulation (48 C.F.R. Subpart 16.5), an indefinite quantity contract "provides for an indefinite quantity, within stated limits, of specific supplies or services to be furnished during a fixed period, with deliveries to be scheduled by placing orders with the contractor." The regulation indicates that this type of contract may be used when the exact times and quantities of future deliveries are not known at the time of contract award, For example, several government hospitals may want to order supplies together in order to obtain a quantity discount. If they use an indefinite delivery/indefinite quantity contract, they can provide an estimated amount of the supplies they want, without specifying an exact number. They also will not have to specify in the contract exactly when and where the supplies are to be delivered. The use of this type of contract can offer the advantages of economy and efficiency. Both time and money can be saved when a single procurement results in a contract that serves multiple customers and obtains quantity discounts. Other advantages of this kind of contract, as enumerated in federal acquisition regulations, include the ability to ship equipment and supplies directly to users, the ability to order supplies or services after the requirements materialize, and the obligation of the government to purchase no more than a specified minimum quantity.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1989
- Accession Number
- AD1150219
Entities
People
- Ralph V. Carlone
Organizations
- United States Government Accountability Office