DoD Adds Requirements Contract Clause

On Monday, the Department of Defense is set to issue a final rule (DFARS Case 2012-D057) that amends the Defense Federal Acquisition Supplement to add a new contract clause, DFARS 252.216-7010, Requirements, and its alternate. The clause will be used in lieu of the FAR 52.216-21 Requirements clause in solicitations and contracts when a requirements contract for the preparation of personal property for shipment or storage, or for the performance of intra-city or intra-area movement, is contemplated. The basic clause applies to an acquisition that does not involve a partial small business set-aside, while the alternate applies if the acquisition does include a partial business set aside.

The clause states that the quantities of supplies or services specified in the contract Schedule are estimates only, and a contractor is not entitled to an equitable adjustment if the government’s requirements do not result in orders in the quantities described as “estimated” or “maximum” in the Schedule. However, the government must order from the contractor all the supplies or services specified in the Schedule, although the government has no obligation to purchase requirements in excess of any limit on total orders under the contract. Also, if the government urgently requires delivery of an item, and the contractor will not accept an order for accelerated delivery, the government may acquire the urgently required goods or services from another source.

Wolters Kluwer’s DFARS Matrix Tool will incorporate this new clause on the rule’s April 21, 2014, effective date. The DFARS Matrix Tool provides quickly accessible descriptions, flowdown information, and reporting requirements for the more than 385 DFARS clauses and alternates.

About George Gullo

George Gullo is an attorney editor in the Government Contracts group at Wolters Kluwer Legal & Regulatory U.S. George serves as the principal editor of Cost Accounting Standards Guide and supports all of the group’s print and electronic publications, as well as legal research tools, including the Government Contracts Reporter, Board of Contract Appeals Decisions, and the FAR and DFARS Matrix Smart Charts. With more than 25 years experience in the legal publishing industry, including more than 15 years in the government contracts area, George also has a background in legal and business transactions. He is a graduate of DePaul University College of Law and a licensed Illinois attorney.
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