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  • Question

    Can estimated quantities be used on firm fixed price contracts?


    Answer

    When quantities can only be estimated, a Requirements contract type is appropriate (see FAR 16.503). The clause at FAR 52.216-21, Requirements, is used to describe how an estimated quantity is used for those contract types. Although the term "Firm-Fixed-Price" is sometimes used whenever a firm unit price is part of the contract, the term more specifically describes a procurement when both unit price and quantity are firm (not estimated).

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