FAR 52.216-22 — Indefinite Quantity

This clause establishes that the government will order only a stated minimum quantity and may order up to a stated maximum, with delivery or performance made only through orders issued under the Ordering clause.

Clause: FAR 52.216-22
Applies to: Indefinite-quantity contracts
Flows down to subs: Yes
Primary risk: Ambiguity over total contract ceiling

Key takeaways

Read the clause as incorporated in your contract — tailoring and alternates change obligations.
Flowdown obligations are your responsibility; a noncompliant subcontractor is your problem.
Document compliance contemporaneously; after-the-fact reconstruction rarely satisfies auditors.
When a clause is unclear, ask the contracting officer in writing before award, not after.

What the clause requires

The contract itself does not obligate the government beyond the minimum; obligations arise only as individual orders are issued. The contract specifies a period during which orders may be placed, and any order not fulfilled by the end of the period is still to be completed unless terminated.

How to comply in practice

Do not book the contract ceiling as guaranteed revenue in any financial planning; only the stated minimum is guaranteed, and pipeline forecasts should reflect that distinction clearly to leadership and lenders.

Common mistakes

The most damaging mistake is treating the contract's maximum value as committed revenue when pursuing financing or staffing decisions, when only the minimum is legally obligated.