25 May 2005
Change 1, 22 February 2006
Change 2, 4 December 2006
CHAPTER 6 CONTRACT LINE ITEMS
Multiple contract line items are not required if the project cost estimate is clearly within
the funds available. However, if the estimated construction cost exceeds the project
budget, option contract line items or additive contract line items may need to be
established in order to ensure that an award can be made within the available funds.
In composing contract line items, the "base item" must provide a usable facility. Work
for option items and additive items should be selected which can logically be separated
from the project without rendering the facility unusable. It is intended that the "base
item," together with all the contract line items, will provide the maximum usable facility
for the funds available.
The number of items and the estimated cost per item will depend upon the nature of the
project. There shall be no more than four contract line items without specific approval of
the Contracting Officer. Each estimated option/additive item should tend to approximate
2% to 10% of the estimated base item.
CONTRACT LINE ITEM SCHEDULE.
Do not indicate line items on the drawings or reference anywhere in the specifications,
unless approved by the Government, who may allow only if a description of the line item
in the contract line item schedule does not adequately describe the work. Changing the
contract line item schedule is easier than changing the contract documents, if line items
or numbers change.
Do not use the term "alternate" to represent line items. Do not use terms, such as "base
item," to indicate items in the primary, contract line item.
When funding is not available to cover certain portions of the work at the time of
proposal opening, but there exists a high probability of attaining the funding in the near
future, option items provide a means to obtain and hold competitive prices for these
items of work. Typically, the price for the option item(s) is added to the base item price
to determine the low offeror. Options need not be listed in a particular order. They are
executed individually at the Government's discretion. A time limit is given in the
contract documents for the Government's right to execute each option. Use of options
in construction contracts must be approved by the Contracting Officer prior to
advertisement. Option items and additive items shall not be mixed on a single