Indefinite-Delivery Β· FAR 16.502

Definite-Quantity Contract

What It Is

A definite-quantity contract provides for delivery of a definite quantity of specific supplies or services for a fixed period, with deliveries scheduled at designated locations when ordered. The quantity is fixed at award β€” what is indefinite is the timing and place of delivery, which the government specifies later through orders. It is the least common of the three indefinite-delivery types and is used when the government knows in advance the exact quantity it will need but not precisely when or where it will need it.

Who Carries the Risk

Low quantity uncertainty β€” the total is fixed β€” but the contractor must be ready to deliver on the government's schedule and at the locations it later designates.

When the Government Uses It

  • When a definite quantity will be needed during a period but the exact delivery timing and locations are not yet known.
  • Supplies or services the government can quantify up front but wants to schedule against operational needs.
  • Less common than IDIQ and requirements contracts; used in narrower situations.

Key Features

FeatureWhat It Means
Definite quantityThe total quantity is fixed at award β€” unlike IDIQ (min/max) or requirements (actual demand).
Indefinite delivery timingDeliveries are scheduled by order at designated locations when the government directs.
Fixed periodOrders are placed within a defined contract period.
Order pricing typeLike other indefinite-delivery contracts, the underlying pricing is typically firm-fixed-price.

What It Means for an SDVOSB

Because the quantity is fixed, a definite-quantity contract carries less demand uncertainty than an IDIQ or requirements contract, which makes pricing and capacity planning simpler for a small business. Limitations on subcontracting apply by the work category and pricing type under 13 CFR 125.6, the same as on any set-aside.

Common Pitfalls

  • Underestimating the logistics of delivering on the government's timing and to locations specified after award.
  • Confusing it with IDIQ β€” here the quantity is definite; only delivery timing and place are indefinite.

Frequently Asked

How is a definite-quantity contract different from an IDIQ?

In a definite-quantity contract the total quantity is fixed at award and only the delivery timing and locations are indefinite. In an IDIQ the quantity itself is indefinite within a stated minimum and maximum. So a definite-quantity contract gives the contractor far more certainty about how much it will ultimately deliver.

Primary Sources

Plain-English reference, not legal advice. Contract-type selection is a contracting-officer judgment and the FAR is periodically amended β€” always confirm the contract type, clauses, and how the limitations on subcontracting are measured against the solicitation and your contracting officer before relying on this.

Last updated Update cadence: Quarterly, plus on FAR amendment
Change log (1)
  1. LaunchedPublished the federal contract types reference covering the pricing and delivery arrangements an SDVOSB encounters on set-asides β€” firm-fixed-price (FFP), fixed-price with economic price adjustment (FP-EPA), fixed-price incentive (FPIF), the cost-reimbursement family (CPFF, CPIF, CPAF), time-and-materials and labor-hour, the indefinite-delivery vehicles (IDIQ, requirements, definite-quantity), and letter contracts β€” each with a who-carries-the-risk callout, a key-features table, an SDVOSB-specific angle tying the type to the limitations on subcontracting, common pitfalls, FAQPage, Article, Dataset, and BreadcrumbList structured data, primary-source FAR Part 16 citations, and cross-links into the glossary, regulation explainers, how-to guides, FAQ, and the limitations-on-subcontracting and price-to-win calculators.

Related Contract Types

The Rules Behind It

13 CFR § 125.6 — Limitations on Subcontracting→

Put It Into Practice

How to Find and Bid SDVOSB Set-Aside Contracts→

Terms Used on This Page

IDIQTask OrderFFP

In the FAQ Knowledge Base

What types of contracts do SDVOSBs typically perform?β†’
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