Government Contracts FAR Rule Allows Orders to Be Issued by Fax or Electronic Commerce
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Monday, September 16, 2019

FAR Rule Allows Orders to Be Issued by Fax or Electronic Commerce

By Government Contracts Editorial Staff

The Department of Defense, General Services Administration, and National Aeronautics and Space Administration are proposing to amend the clause at FAR 52.216-18 to allow the issuance of task or delivery orders via fax or electronic commerce and clarify when an order is “issued” under these methods. FAR 52.216-18, Ordering, currently states that task or delivery orders may be issued orally, by facsimile, or electronic commerce only if authorized in the contract schedule. If mailed, task or delivery orders are considered “issued” when the government puts the order in the mail. The clause is included in solicitations and contracts when an indefinite-delivery definite-quantity, requirements, or IDIQ contract is contemplated.

Current Business Practices. The rule seeks to reflect current business practices and maintain speed and efficiency in the ordering process by updating FAR 52.216-18 to no longer require a separate authorization in the contract to use electronic commerce or fax to issue task or delivery orders. Further, the rule proposes a common understanding of when a task or delivery order is considered issued in such situations. However, the authority to issue orders orally must still be authorized under the contract and would not be amended by the rule. Comments referencing FAR Case 2019-010 are due October 22, 2019. For the text of the proposed rule, see ¶70,006.341.

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