Dictionary of Procurement Terms

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  • Delivery/Indefinite

    Contract does not specify delivery dates. Terms are suitable for commodity purchases, products which are standard throughout the industry with numerous suppliers. All of the indefinite delivery types of clauses should be used only with fixed firm price or fixed price with escalation pricing contracts. The following are three variations of indefinite delivery contracts: 1. Indefinite delivery with a definite quantity - occurs when a quantity of supplies or services is specified, but the time of delivery is flexible. Used when requirements are definite or have a short lead time. 2. Indefinite quantity and delivery - is used to establish a minimum and maximum quantity that can be ordered within a definite delivery period. This contract requirement is flexible in terms of both quantity and delivery schedule. 3. Requirement delivery - is used when the public entity agrees to purchase all requirements for a certain period of time from the supplier. Used when the quantity of items and the number of deliveries is unspecified; thereby differentiating it from a definite type of contract, since specific quantities have not been established.