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   <concept id="DFARS_247.271-1"
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      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">247.271-1</ph> Policy.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p outputclass="List1" class="- topic/p ">(a)  <i class="+ topic/ph hi-d/i ">Annual contracts.</i>  Normally—</p>
         <p outputclass="List2" class="- topic/p ">(1)  Use requirements contracts to acquire services for the—</p>
         <p outputclass="List3" class="- topic/p ">(i)  Preparation of personal property for shipment or storage; and</p>
         <p outputclass="List3" class="- topic/p ">(ii)  Performance of intra-area movement.</p>
         <p outputclass="List2" class="- topic/p ">(2)  Award contracts on a calendar year basis.</p>
         <p outputclass="List2" class="- topic/p ">(3)  Provide for option years.</p>
         <p outputclass="List2" class="- topic/p ">(4)  Award contracts, or exercise option years, before November 1 of each year, if possible.</p>
         <p outputclass="List1" class="- topic/p ">(b)  <i class="+ topic/ph hi-d/i ">Areas of performance.</i>  Define clearly in the solicitation each area of performance.</p>
         <p outputclass="List2" class="- topic/p ">(1)  Establish one or more areas; however, hold the number to a minimum consistent with local conditions.</p>
         <p outputclass="List2" class="- topic/p ">(2)  Each schedule may provide for the same or different areas of performance.  Determine the areas as follows—</p>
         <p outputclass="List3" class="- topic/p ">(i)  Use political boundaries, streets, or any other features as lines of demarcation.  Consider such matters as—</p>
         <p outputclass="List4" class="- topic/p ">(A)  Total volume;</p>
         <p outputclass="List4" class="- topic/p ">(B)  Size of overall area; and</p>
         <p outputclass="List4" class="- topic/p ">(C)  The need to service isolated areas of high population density.</p>
         <p outputclass="List3" class="- topic/p ">(ii)  Specifically identify frequently used terminals, and consider them as being included in each area of performance described in the solicitation.</p>
         <p outputclass="List1" class="- topic/p ">(c)  <i class="+ topic/ph hi-d/i ">Maximum requirements-minimum capability.</i>The contracting officer must—</p>
         <p outputclass="List2" class="- topic/p ">(1)  Establish realistic quantities on the Estimated Quantities Report in DoD 4500.9-R, Defense Transportation Regulation, Part IV;</p>
         <p outputclass="List2" class="- topic/p ">(2)  Ensure that the Government's minimum acceptable daily capability—</p>
         <p outputclass="List3" class="- topic/p ">(i)  Will at least equal the maximum authorized individual weight allowance as prescribed by the Joint Federal Travel Regulations; and</p>
         <p outputclass="List3" class="- topic/p ">(ii)  Will encourage maximum participation of small business concerns as offerors.</p>
      </conbody>
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