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    We are in an overseas contingency environment. We are developing a contract for commercial laundry services and are trying to determine the best type of contract to use. In my research I have seen a requirements contract used, in which estimated quantities are provided in the solicitation but there is no minimum guarantee. I've also seen instances where a regular "C" type contract was used in which the contractor has quoted a price during the solicitation phase for each article to be laundered (i.e., pillow case, king size, 1 each) and then invoices each month for the quantities of all items laundered during that month. We are trying to make it as simple a process as possible for our customers and would like to use the regular "C" type contract because it doesen't require processing delivery orders. Would this be an appropriate way ahead? Thank you.


    Answer

    A "C" contract, with a fixed price specified per type of clothing article along with estimated quantities per item, would indeed avoid the administrative burden of issuing one or more task orders associated with a “D” (indefinite delivery) contract. DFARS 204 states that the "C" designation is for "Contracts of all types except indefinite delivery contracts, sales contracts, and contracts placed with or through other Government departments or agencies or against contracts placed by such departments or agencies outside the DoD." Therefore, if you don't use an indefinite delivery contract (IDC) or other specified type, a "C" contract is prescribed. Note that FAR 16.501-2 states "The appropriate type of indefinite-delivery contract may (my bold) be used to acquire supplies and/or services when the exact times and/or exact quantities of future deliveries are not known at the time of contract award." It does not require the use of an IDC. There is confusion about the appropriate use of a "C" contract versus an IDC. Many believe that "C" contracts should be used only when a definite quantity of items will be delivered during a specific performance period, but I’m unaware of any regulation that requires this.

    See DFARS 237.71 for additional guidance on contracts for laundry services. While that subpart is not mandatory for laundry contracts performed at overseas locations, it contains information that may be useful for your situation.


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