Subpart 204.71 - Uniform Contract Line Item Numbering System: (Revised February 23, 2006)
Subpart 204.71 - Uniform Contract Line Item Numbering System: (Revised February 23, 2006)
Subpart 204.71 - Uniform Contract Line Item Numbering System: (Revised February 23, 2006)
1998 EDITION
204.71-1
(b) The numbering procedures are mandatory for all contracts where separate
contract line item numbers are assigned, unless
(1) The contract is an indefinite-delivery type for petroleum products against
which posts, camps, and stations issue delivery orders for products to be consumed by
them; or
(2) The contract is a communications service authorization issued by the
Defense Information Systems Agency's Defense Information Technology Contracting
Organization.
204.7103 Contract line items.
204.7103-1 Criteria for establishing.
Contracts shall identify the items or services to be acquired as separate contract line
items unless it is not feasible to do so.
(a) Contract line items shall have all four of the following characteristics; however,
there are exceptions within the characteristics, which may make establishing a
separate contract line item appropriate even though one of the characteristics appears
to be missing
(1) Single unit price. The item shall have a single unit price or a single total
price, except
(i) If the item is not separately priced (NSP) but the price is included in the
unit price of another contract line item, enter NSP instead of the unit price;
(ii) When there are associated subline items, established for other than
informational reasons, and those subline items are priced in accordance with 204.7104;
contract;
(iv) When the contract is for maintenance and repair services (e.g., a labor
hour contract) and firm prices have been established for elements of the total price of an
item but the actual number and quantity of the elements are not known until
performance. The contracting officer may structure these contracts to reflect a firm or
estimated total amount for each line item;
(v) When the contract line item is established to refer to an exhibit or an
attachment (if management needs dictate that a unit price be entered, the price shall be
set forth in the item description block and enclosed in parentheses); or
(vi) When the contract is an indefinite delivery type contract and provides
that the price of an item shall be determined at the time a delivery order is placed and
the price is influenced by such factors as the quantity ordered (e.g., 10-99 @ $1.00,
100-249 @ $.98, 250+ @ $.95), the destination, the FOB point, or the type of packaging
required.
(2) Separately identifiable. A contract line item must be identified separately
from any other items or services on the contract.
1998 EDITION
204.71-2
(i) Supplies are separately identifiable if they have no more than one
(A) National stock number (NSN);
(B) Item description; or
(C) Manufacturer's part number.
(ii) Services are separately identifiable if they have no more than one
(A) Scope of work; or
(B) Description of services.
(iii) This requirement does not apply if there are associated subline items,
established for other than informational reasons, and those subline items include the
actual detailed identification in accordance with 204.7104. Where this exception
applies, use a general narrative description instead of the contract item description.
(3) Separate delivery schedule. Each contract line item or service shall have its
own delivery schedule, period of performance, or completion date expressly stated (as
required constitutes an expressly stated delivery term).
(i) The fact that there is more than one delivery date, destination,
performance date, or performance point may be a determining factor in the decision as
to whether to establish more than one contract line item.
(ii) If a contract line item has more than one destination or delivery date,
the contracting officer may create individual contract line items for the different
destinations or delivery dates, or may specify the different delivery dates for the units
by destination in the delivery schedule.
(4) Single accounting classification citation.
(i) Each contract line item shall reference a single accounting classification
citation except as provided in paragraph (a)(4)(ii) of this subsection.
(ii) The use of multiple accounting classification citations for a contract line
item is authorized in the following situations:
(A) A single, nonseverable deliverable to be paid for with R&D or other
funds properly incrementally obligated over several fiscal years in accordance with DoD
policy;
(B) A single, nonseverable deliverable to be paid for with different
authorizations or appropriations, such as in the acquisition of a satellite or the
modification of production tooling used to produce items being acquired by several
activities; or
1998 EDITION
204.71-3
204.71-4
(2) The informational subline item may include quantities, prices, or amounts,
if necessary to satisfy management requirements. However, these elements shall be
included within the item description in the supplies/services column and enclosed in
parentheses to prevent confusing them with quantities, prices, or amounts that have
contractual significance. Do not enter these elements in the quantity and price
columns.
(3) Informational subline items shall be used to identify each accounting
classification citation assigned to a single contract line item number when use of
multiple citations is authorized (see 204.7103-1(a)(4)(ii)).
(b) Separately identified subline items.
(1) Subline items will be used instead of contract line items to facilitate
payment, delivery tracking, contract funds accounting, or other management purposes.
Such subline items shall be used when items bought under one contract line item
number
(i) Are to be paid for from more than one accounting classification. A
subline item shall be established for the quantity associated with the single accounting
classification citation. Establish a line item rather than a subline item if it is likely that
a subline item may be assigned additional accounting classification citations at a later
date. Identify the funding as described in 204.7104-1(a)(3);
(ii) Are to be packaged in different sizes, each represented by its own NSN;
(iii) Have collateral costs, such as packaging costs, but those costs are not a
part of the unit price of the contract line item;
(iv) Have different delivery dates or destinations or requisitions, or a
combination of the three; or
(v) Identify parts of an assembly or kit which
(A) Have to be separately identified at the time of shipment or
performance; and
(B) Are separately priced.
(2) Each separately identified contract subline item shall have its own
(i) Delivery schedule, period of performance, or completion date;
(ii) Unit price or single total price or amount (not separately priced (NSP) is
acceptable as an entry for price or amount if the price is included in another subline
item or a different contract line item). This requirement does not apply
(A) If the subline item was created to refer to an exhibit or an
attachment. If management needs dictate that a unit price be entered, the price shall
be set forth in the item description block of the schedule and enclosed in parentheses; or
1998 EDITION
204.71-5
1(a)(1)(vi).
1998 EDITION
204.71-6
(B) The original line item or subline item number may be used if the
modification makes only minor changes in the specifications of some of the items
ordered on the original line item or subline item and the resulting changes in unit price
can be averaged to provide a new single unit price for the total quantity. If the changes
in the specifications make the item significantly distinguishable from the original item
or the resulting changes in unit price cannot be averaged, create a new line item.
(C) If the modification affects only a partial quantity of an existing
contract or exhibit line item or subline item and the change does not involve either the
delivery date or the ship-to/mark-for data, the original contract or exhibit line item or
subline item number shall remain with the unchanged quantity. Assign the changed
quantity the next available number.
(ii) Undefinitized items. In addition to the rules in paragraph (b)(2)(i), the
following additional rules apply to undefinitized items
(A) If the modification is undefinitized and increases the quantity of an
existing definitized item, assign the undefinitized quantity the next available number.
(B) If the modification increases the quantity of an existing
undefinitized item, the original contract or exhibit line item or subline item may be
used if the unit price for the new quantity is expected to be the same as the price for the
original quantity. If the unit prices of the two quantities will be different, assign the
new quantity the next available number.
(C) If the modification both affects only a partial quantity of the
existing contract or exhibit line or subline item and definitizes the price for the affected
portion, the definitized portion shall retain the original item number. If there is any
undefinitized portion of the item, assign it the next available number. However, if the
modification definitizes the price for the whole quantity of the line item, and price
impact of the changed work can be apportioned equally over the whole to arrive at a
new unit price, the quantity with the changes can be added into the quantity of the
existing item.
(D) If the modification affects only a partial quantity of an existing
contract or exhibit line or subline item but does not change the delivery schedule or
definitize price, the unchanged portion shall retain the original contract or exhibit line
or subline item number. Assign the changed portion the next available number.
(3) If the modification will decrease the amount obligated
(i) There shall be coordination between the administrative and procuring
contracting offices before issuance of the modification; and
(ii) The contracting officer shall not issue the modification unless sufficient
unliquidated obligation exists or the purpose is to recover monies owed to the
Government.
204.7107 Contract accounting classification reference number (ACRN).
Follow the procedures at PGI 204.7107 for assigning ACRNs.
204.7108 Payment instructions.
1998 EDITION
204.71-7
1998 EDITION
204.71-8