# MP5316.504 Types of Contracts

#### Mandatory Procedure

MP5316.504
Types of Contracts

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March 2007

MP5316.504 Indefinite-Quantity Contracts

(a) Description.

(1) For indefinite-delivery indefinite-quantity (IDIQ) contracts all supplies and services to be furnished shall be obtained via delivery order(s) or task order(s) issued by individuals designated in the contract.

(2) Upon execution of the contract, an obligation shall be recorded based upon the issuance of a delivery or task order for the cost/price of the minimum quantity specified. Obtaining a certification of availability of funding from the finance office does not satisfy the requirement to record an obligation in the official accounting records of the Government for the minimum order amount established by the award of an IDIQ contract. The Government’s actual obligation must be recorded at the time of contract award. Recording and subsequently reporting the required obligation using anything other than a delivery or task order will result in the action not being reported in FPDS-NG. The Recording of Obligations Act is implemented in the DoD Financial Management Regulation (FMR) (DoD 7000.14-R) (See paragraph 080504 of the FMR). The Defense Finance and Accounting Service (DFAS) is responsible for recording contractual obligations in the Air Force accounting records.