(Revised May 31, 2007)

 

 

 

 

      (a)  Contract line items shall consist of four numeric digits 0001 through 9999.  Do not use numbers beyond 9999.  Within a given contract, the item numbers shall be sequential but need not be consecutive.

 

      (b)  The contract line item number shall be the same as the solicitation line item number unless there is a valid reason for using different numbers.

 

      (c)  Once a contract line item number has been assigned, it shall not be assigned to another, different, contract line item in the same contract.

 

 

 

      (a)  Number subline items by adding either two numeric characters or two alpha characters to the basic contract line item number.

 

              (1)  Information subline item numbers.  Use numeric characters only for information subline items, running 01 through 99.  Do not use spaces or special characters to separate the subline item number from the contract line item number that is its root.  For example, if the contract line item number is 0001, the first three subline items would be 000101, 000102, and 000103.  Do not use a designation more than once within a contract line item.

 

              (2)  Separately identified subline items.  Use alpha characters only for separately identified subline items, running AA through ZZ.  Do not use spaces or special characters to separate the subline item number from the contract line item number that is its root.  For example, if the contract line item number is 0001, the first three subline items would be 0001AA, 0001AB, and 0001AC.

 

                    (i)  Do not use the letters I or O as alpha characters.

 

                    (ii)  Use all 24 available alpha characters in the second position before selecting a different alpha character for the first position.  For example, AA, AB, AC, through AZ before beginning BA, BB, and BC.

 

      (b)  Within a given contract line item, the subline item numbers shall be sequential but need not be consecutive.

 

      (c)  Exhibits may be used as an alternative to setting forth in the schedule a long list of contract subline items.  If exhibits are used, create a contract subline item citing the exhibit's identifier.  See DFARS 204.7105.

 

      (d)  If a contract line item involves ancillary functions, like packaging and handling, transportation, payment of state or local taxes, or use of reusable containers, and these functions are normally performed by the contractor and the contractor is normally entitled to reimbursement for performing these functions, do not establish a separate subline item solely to account for these functions.  However, do identify the functions in the contract schedule.  If an offeror separately prices these functions, the contracting officer may establish separate subline items for the functions; however, the separate subline items must conform to the requirements of DFARS 204.7104-1.

 

      (e)  The following examples illustrate subline items numbering—

 

              (1)  Subline items structured to identify destinations for identical items, identically priced (delivery schedule shall be established for each subline item, not the contract line item).

 

ITEM NO.	SUPPLIES/SERVICE	QUANTITY	UNIT	UNIT PRICE	AMOUNT
0001	NSN 1615-00-591-6620 Shim, Aluminum Alloy,... Apbl, Rotor, Helicopter PRON A1-9-63821-M1-M1 ACRN:AA
0001AA	A3168R-9030-4025 A2537M IPD:  2 RDD:  334 PROJ:  501	10	EA	$100.00	$1,000.00
0001AB	A3168R-9030-4026 A51AXBM IPD:  2 RDD:  325 PROJ:  502	10	EA	$100.00	$1,000.00
0001AC	A3168R-9030-4027 A67KBCM IPD:  2 RDD:  349 PROJ:  503	15	EA	$100.00	$1,500.00

 

              (2)  Subline items structured to identify destinations for identical items, not identically priced (delivery schedule shall be established for each subline item, not the contract line item).

 

 

ITEM NO.	SUPPLIES/SERVICE	QUANTITY	UNIT	UNIT PRICE	AMOUNT
0001	NSN 1615-00-591-6620 Shim, Aluminum Alloy,... Apbl, Rotor, Helicopter PRON A1-9-63821-M1-M1 ACRN:AA
0001AA	A3168R-9030-4025 A2537M IPD:  2 RDD:  334 PROJ:  501	10	EA	$100.00	$1,000.00
0001AB	A3168R-9030-4026 A51AXBM IPD:  2 RDD: 325 PROJ:  502	20	EA	$99.00	$1,980.00
0001AC	A3168R-9030-4027 A67KBCM IPD:  2 RDD: 349 PROJ:  503	30	EA	$98.00	$2,940.00

 

NOTE:  Difference in prices for identical items is due to separate destinations for FOB destination delivery.

 

              (3)  Subline items structured to identify different sizes of an item that are identically priced (delivery schedule shall be established for each subline item, not the contract line item).

 

ITEM NO.	SUPPLIES/ SERVICE	QUANTITY	UNIT	UNIT PRICE	AMOUNT
0013	Boots Insulated, Cold Weather White, Type II, Class 1		PR	$38.35	$13,422.50
0013AA	8430-00-655-5541 Size 5N	50
0013AB	8430-00-655-5544 Size 8N	70
0013AC	8430-00-655-5551 Size 9N	30
0013AD	8430-00-655-5535 Size 9R	200

 

NOTE:  Unit price and total amount shown at line item level rather than at subline item level.

 

              (4)  Subline items structured to identify different sizes of an item that are not identically priced (delivery schedule shall be established for each subline item, not the contract line item).

 

ITEM NO.	SUPPLIES/ SERVICE	QUANTITY	UNIT	UNIT PRICE	AMOUNT
0002	Body Armor Ground Troops Variable Type Small Arms, Fragmentation Protective Nylon Felt Vest, Front and Back Plates, Ceramic Plate, Type I
0002AA	First Article	1	LO	NSP
0002AB	8470-00-141-0935 Medium Regular	1936	SE	$331.77	$642,306.72
0002AC	8470-00-141-0936 Large Regular	625	SE	$355.77	$222,356.25
0002AD	8470-00-141-0937, Medium Long	1237	SE	$346.77	$428,954.49
0002AE	8470-00-141-0938, Large Long	804	SE	$365.77	$294,079.08

 

              (5)  Subline items structured to provide the capability for relating subordinate separately priced packaging costs to the overall contract line item.  (Separate delivery schedules shall be established for the subline item identifying the contractor's product and for the subline item identifying packaging.  No schedule will be established for the contract line item.)

 

ITEM NO.	SUPPLIES/ SERVICE	QUANTITY	UNIT	UNIT PRICE	AMOUNT
0001	6105-00-635-6568 50380 Ref No 63504-WZ Armature Motor ACRN:  AA
0001AA	6105-00-635-6568 50380 Ref No 63504-WZ Armature Motor ACRN:  AA	2	EA	$2,895.87	$5,791.74
0001AB	Packaging ACRN:AA	2	EA	$289.58	$579.16

 

              (6)  Subline items structured to identify different accounting classifications for identical items (delivery schedule shall be established for each subline item, not the contract line item).

 

AJ:  17X150518350315069100000192B000000000000000000

AK:  17X150518370317569100000192B000000000000000000

AL:  17X150519350314369100000192B000000000000000000

 

ITEM NO.	SUPPLIES/ SERVICE	QUANTITY	UNIT	UNIT PRICE	AMOUNT
0002	Pulse Decoder KY-312/A5Q-19		EA	$3,037.40
0002AA	Pulse Decoder KY-312/A5Q-19 ACRN:  AJ	2			$6,074.80
0002AB	Pulse Decoder KY-312/A5Q-19 ACRN:  AK	6			$18,224.40
0002AC	Pulse Decoder KY-312/A5Q-19 ACRN:  AL	2			$6,074.80

 

NOTE:  Unit price may be shown at line item level and total amounts shown at subline item level.

 

              (7)  Informational subline items established to identify multiple accounting classification citations assigned to a single contract line item.

 

ITEM NO.	SUPPLIES/ SERVICE	QUANTITY	UNIT	UNIT PRICE	AMOUNT
0001	Air Vehicle	1	EA	$6,700,000	$6,700,000
	000101       ACRN:AA $3,300,000
	000102       ACRN:AB $2,000,000
	000103       ACRN:AC $1,400,000

 

              (8)  Subline items structured to identify parts of an assembly (delivery schedule and price shall be established for each identified part at the subline item level, not for the assembly at the contract line item level).

 

 

 

ITEM NO.	SUPPLIES/ SERVICE		QUANTITY	UNIT	UNIT PRICE	AMOUNT
0003	Automatic Degausing System Consisting of: (2 ea @ $52,061; $104,122 total)
0003AA	Switchboard		2	EA	$52,061.00	$104,122.00
0003AB	Remote Control Panel		2	EA	NSP
0003AC	Power Supply (M Coil) SSM Type 145 Amps, 220 V DC)		2	EA	NSP
*	*	*			*	*
0003AF	Power Supply (A Coil) SSM Type (118 Amps, 220 V DC)		2	EA	NSP

 

              (9)  Subline items structured to identify parts of a kit (delivery schedule and price shall be established for each identified part at the subline item level, not for the kit at the contract line item level).

 

ITEM NO.	SUPPLIES/ SERVICE		QUANTITY	UNIT	UNIT PRICE	AMOUNT
0031	Conversion Kit to Convert Torpedo MK 45 Mod 0 to Torpedo MK 45 Mod 1 (50 Kt @ $10,868.52; $543,426 total)
0031AA	Integrator Assy LD 620106		50	EA	$10,868.52	$543,426.00
0031AB	Pulse Generator Assy LD 587569		50	EA	NSP
0031AC	Drive Shaft Assy LD 587559		50	EA	NSP
*	*	*			*
0031BF	Actual Panel Assy LD 542924		50	EA	NSP

 

NOTE:  In this example, the prices of subline items 0031AB through 0031BF are included in the Integrator Assembly.

 

 

      (a)  Use of exhibits.

 

              (1)  Exhibits may be used instead of putting a long list of contract line items or subline items in the contract schedule.  Exhibits are particularly useful in buying spare parts.

 

              (2)  When using exhibits, establish a contract line or subline item and refer to the exhibit.

 

              (3)  Identify exhibits individually.

 

              (4)  Each exhibit shall apply to only one contract line item or subline item, except—

 

                    (i)  One exhibit may apply to one or more option line item(s) when the data required under the exhibits is identical in all respects except the period during which the option is to be exercised; and

 

                    (ii)  An exhibit may apply to more than one contract line item if the exhibit is not separately priced and the exhibit deliverable is identical for all applicable contract line items.

 

              (5)  More than one exhibit may apply to a single contract line item.

 

              (6)  Data items on a DD Form 1423, Contract Data Requirements List, may be either separately priced or not separately priced.

 

                    (i)  Separately priced.  When data are separately priced, enter the price in Section B of the contract.

 

                    (ii)  Not separately priced.  Include prices in a priced contract line item or subline item.

 

              (7)  The contracting officer may append attachments to exhibits, as long as the attachment does not identify a deliverable requirement that has not been established by a contract or exhibit line or subline item.

 

      (b)  Numbering exhibits and attachments.

 

              (1)  Use alpha characters to identify exhibits.  The alpha characters shall be either single or double capital letters.  Do not use the letters I or O.

 

              (2)  Once an identifier has been assigned to an exhibit, do not use it on another exhibit in the same contract.

 

              (3)  The identifier shall always appear in the first or first and second positions of all applicable exhibit line item numbers.

 

              (4)  If the exhibit has more than one page, cite the procurement instrument identification number, exhibit identifier, and applicable contract line or subline item number on each page.

 

              (5)  Use numbers to identify attachments.

 

      (c)  Numbering exhibit line items and subline items.

 

              (1)  Criteria for establishing.  The criteria for establishing exhibit line items and subline items is the same as those for establishing contract line items and subline items (see DFARS 204.7103 and 204.7104, respectively).

 

              (2)  Procedures for numbering.

 

                    (i)  Number items in an exhibit in a manner similar to contract line items and subline items.

 

                    (ii)  Number line items using a four-position number.

 

                            (A)  The first position or the first and second position contain the exhibit identifier.

 

                            (B)  The third and fourth positions contain the alpha or numeric character serial numbers assigned to the line item.

 

                    (iii)  Assign alpha or numeric characters to the line item on the basis of the same criteria outlined in contract subline items at DFARS 204.7104.

 

                    (iv)  Exhibit line item numbers shall be sequential within the exhibit.

 

              (3)  Examples.

 

                    (i)  Two-position serial number for double letter exhibit identifier.

 

Cumulative No. of Line Items

Serial Number Sequence

1-33   34-67   68-101   102-135   136-169   170-203   204-237   238-271   272-305   306-339   340-373   374-407   408-441   442-475   476-509   510-543   544-577   578-611   612-645   646-679   680-713   714-747   748-781   782-815   816-849   850-883   884-917   918-951   952-985   986-1019   1020-1053   1054-1087   1088-1121   1122-1155

01 thru 09, then 0A thru 0Z, then   10 thru 19, then 1A thru 1Z, then   20 thru 29, then 2A thru 2Z, then   30 thru 39, then 3A thru 3Z, then   40 thru 49, then 4A thru 4Z, then   50 thru 59, then 5A thru 5Z, then   60 thru 69, then 6A thru 6Z, then   70 thru 79, then 7A thru 7Z, then   80 thru 89, then 8A thru 8Z, then   90 thru 99, then 9A thru 9Z, then   A0 thru A9, then AA thru AZ, then   B0 thru B9, then BA thru BZ, then   C0 thru C9, then CA thru CZ, then   D0 thru D9, then DA thru DZ, then   E0 thru E9, then EA thru EZ, then   F0 thru F9, then FA thru FZ, then   G0 thru G9, then GA thru GZ, then   H0 thru H9, then HA thru HZ, then   J0 thru J9, then JA thru JZ, then   K0 thru K9, then KA thru KZ, then   L0 thru L9, then LA thru LZ, then   M0 thru M9, then MA thru MZ, then   N0 thru N9, then NA thru NZ, then   P0 thru P9, then PA thru PZ, then   Q0 thru Q9, then QA thru QZ, then   R0 thru R9, then RA thru RZ, then   S0 thru S9, then SA thru SZ, then   T0 thru T9, then TA thru TZ, then   U0 thru U9, then UA thru UZ, then   V0 thru V9, then VA thru VZ, then   W0 thru W9, then WA thru WZ, then   X0 thru X9, then XA thru XZ, then   Y0 thru Y9, then YA thru YZ, then   Z0 thru Z9, then ZA thru ZZ

 

                    (ii)  Three-position numbers.

 

Cumulative No. of Line Items	Serial Number Sequence
1-33   34-67   68-101   102-135   136-305	01 thru 009, then 00A thru 00Z, then   010 thru 019, then 01A thru 01Z, then   020 thru 029, then 02A thru 02Z, then   030 thru 039, then 03A thru 03Z and   so on to
306-339   340-373   374-407   408-441   442-1121   1122-1155   1156-1189   1190-1223   1224-1257   1258-1461   1462-1495   1496-1529   1530-1563   1564-2277   2278-2311   2312-2345   2346-2379   2380-2413   2414-2617   2618-2651   2652-2685   2686-2719   2720-3433   3434-3467   3468-3501   3502-10403   10404-10437   10438-10471   10472-10709   10710-10743   10744-10777   10778-10811   10812-11525   11526-11559	090 thru 099, then 09A thru 09Z, then   0A0 thru 0A9, then 0AA thru 0AZ, then   0B0 thru 0B9, then 0BB thru 0BZ, then   0C0 thru 0C9, then 0CA thru 0CZ, and   so on to   0Z0 thru 0Z9, then 0ZA thru 0ZZ, then   100 thru 109, then 10A thru 10Z, then   110 thru 119, then 11A thru 11Z, then   120 thru 129, then 12A thru 12Z, and   so on to   190 thru 199, then 19A thru 19Z, then   1A0 thru 1A9, then 1AA thru 1AZ, then   1B0 thru 1B9, then 1BA thru 1BZ, and   so on to   1Z0 thru 1Z9, then 1ZA thru 1ZB, then   200 thru 109, then 10A thru 10Z, then   210 thru 219, then 21A thru 21Z, then   220 thru 229, then 22A thru 22Z, and   so on to   290 thru 299, then 29A thru 29Z, then   2A0 thru 2A9, then 2AA thru 2AZ, then   2B0 thru 2B9, then 2BA thru 2BZ, and   so on to   2Z0 thru 2Z9, then 2ZA thru 2ZZ, then   300 thru 309, then 30Z thru 30Z, and   so on to   900 thru 909, then 90A thru 90Z, then   910 thru 919, then 91A thru 91Z, and   so on to   990 thru 999, then 99A thru 99Z, then   9A0 thru 9A9, then 9AA thru 9AZ, then   9B0 thru 9B9, then 9BA thru 9BZ, and   so on to   9Z0 thru 9Z9, then 9ZA thru 9ZZ

 

 

      (a)  The contracting office issuing the contract is responsible for assigning ACRNs.  This authority shall not be delegated.  If more than one office will use the contract (e.g., ordering officers, other contracting officers), the contract must contain instructions for assigning ACRNs.

 

      (b)  Procedures for establishing ACRNs.  ACRNs shall be established in accordance with the following guidelines:

 

              (1)  Do not use the letters I and O.

 

              (2)  In no case shall an ACRN apply to more than one accounting classification citation, nor shall more than one ACRN be assigned to one accounting classification citation.

 

      (c)  Using the ACRN in the contract.

 

              (1)  Show the ACRN as a detached prefix to the accounting classification citation in the accounting and appropriations data block or, if there are too many accounting classification citations to fit reasonably in that block, in section G (Contract Administration Data).

 

              (2)  ACRNs need not prefix accounting classification citations if the accounting classification citations are present in the contract only for the transportation officer to cite to Government bills of lading.

 

              (3)  If the contracting officer is making a modification to a contract and using the same accounting classification citations, which have had ACRNs assigned to them, the modification need cite only the ACRNs in the accounting and appropriations data block or on the continuation sheets.

 

      (d)  Showing the ACRN in the contract.  If there is more than one ACRN in a contract, all the ACRNs will appear in several places in the schedule (e.g., ACRN:AA).

 

              (1)  Ship-to/mark-for block.  Show the ACRN beside the identity code of each activity in the ship-to/mark-for block unless only one accounting classification citation applies to a line item or subline item.  Only one ACRN may be assigned to the same ship-to/mark-for within the same contract line or subline item number unless multiple accounting classification citations apply to a single nonseverable deliverable unit such that the item cannot be related to an individual accounting classification citation.

 

              (2)  Supplies/services column.

 

                    (i)  If only one accounting classification citation applies to a line item or a subline item, the ACRN may be shown in the supplies/services column near the item description.

 

                    (ii)  If more than one accounting classification citation applies to a single contract line item, identify each assigned ACRN and the amount of associated funds using informational subline items (see DFARS 204.7104-1(a)).

 

 

      (a)  Scope.  This section applies to contracts and any separately priced orders that--

 

(1)  Include contract line items that are funded by multiple accounting classification citations for which a contract line item or items are not broken out into separately identifiable subline items (informational subline items are not separately identifiable subline items);

 

(2)  Contain cost-reimbursement or time-and-materials/labor-hour line items; or

 

(3)  Authorize financing payments.

 

      (b)  For contracts and orders covered by this subpart, the contracting officer shall establish instructions in Section G (Contract Administration Data), under the heading “Payment Instructions for Multiple Accounting Classification Citations,” to permit the paying office to charge the accounting classification citations assigned to that contract line item (see DFARS 204.7104-1(a)) in a manner that reflects the performance of work on the contract.  If additional accounting classification citations are subsequently added, the payment instructions must be modified to include the additional accounting classification citations.  Also, contracting officers shall not issue modifications that would create retroactive changes to payment instructions.  All payment instruction changes shall be effective as of the date of the modification.

 

      (c)  Payment instructions—

 

              (1)  Shall provide a methodology for the payment office to assign payments to the appropriate accounting classification citation(s), based on anticipated contract work performance;

 

              (2)  Shall be consistent with the reasons for the establishment of separate contract line items. 

 

              (3)  For contracts or orders other than those that provide for progress payments based on costs, shall be selected from those provided in paragraph (d) of this section;

 

              (4)  For contracts or orders that provide for progress payments based on costs, shall use the instructions in paragraph (d)(11) of this section unless the administrative contracting officer authorizes use of one of the other options in paragraph (d);

 

            (5)  Shall be revised to address the impact of changes to contract funding or significant disparities between existing instructions and actual contract performance.

 

            (6)  Shall state at what level (contract, contract line, subline, exhibit line, or ACRN) the payment instructions should be applied.

 

            (7)  Shall not be mixed within a level by contract type.  For example, if the instructions apply at the contract level, there can be only one payment instruction for each contract type.  If the instructions apply at the contract line or subline level, there can only be one payment instruction per contract line or subline item.

 

            (8)  For contracts or orders that contain a combination of fixed-price, cost-reimbursement, and/or time-and-materials/labor-hour line items, shall at a minimum include separate instructions for each contract type of contract line item (e.g., contract-wide proration for fixed-price line items and contract-wide ACRN level for cost-reimbursement line items.

 

            (9)  For contracts or orders that contain foreign military sales requirements, shall include instructions for distribution of the contract financing payments to each country's account.

 

            (10)  Shall use one of the standard payment instructions in paragraphs (d)(7) through (11) of this section unless the contracting officer documents in the contract file that there are significant benefits of requiring contractor identification of the contract line item on the payment request.

 

      (d)  The numbered payment instructions ((d)(1) through (12)) below correspond to the automated payment instructions in the supporting systems; therefore, care should be exercised when identifying the numbered paragraph below in Section G of the contract.  Include either one contract-wide instruction or one or more line item specific instructions.  The contracting officer shall not use a combination of contract-wide and line item specific instructions.

 

        (1)  Line item specific: single funding.  If there is only one source of funding for the contract line item (i.e., one ACRN), the payment office will make payment using the ACRN funding of the line item being billed.

 

              (2)  Line item specific: sequential ACRN order.  If there is more than one ACRN within a contract line item, the payment office will make payment in sequential ACRN order within the line item, exhausting all funds in the previous ACRN before paying from the next ACRN using the following sequential order: Alpha/Alpha; Alpha/numeric; numeric/alpha; and numeric/numeric.

     

              (3)  Line item specific: contracting officer specified ACRN order.  If there is more than one ACRN within a contract line item, the payment office will make payment within the line item in the sequence ACRN order specified by the contracting officer, exhausting all funds in the previous ACRN before paying from the next ACRN.

 

              (4)  Line item specific: by fiscal year.  If there is more than one ACRN within a contract line item, the payment office will make payment using the oldest fiscal year appropriations first, exhausting all funds in the previous fiscal year before disbursing from the next fiscal year.  In the event there is more than one ACRN associated with the same fiscal year, the payment amount shall be disbursed from each ACRN within a fiscal year in the same proportion as the amount of funding obligated for each ACRN within the fiscal year.

     

              (5)  Line item specific: by cancellation date.  If there is more than one ACRN within a contract line item, the payment office will make payment using the ACRN with the earliest cancellation date first, exhausting all funds in that ACRN before disbursing funds from the next.  In the event there is more than one ACRN associated with the same cancellation date, the payment amount shall be disbursed from each ACRN with the same cancellation date in the same proportion as the amount of funding obligated for each ACRN with the same cancellation date.

 

              (6)  Line item specific: proration.  If there is more than one ACRN within a contract line item, the payment office will make payment from each ACRN in the same proportion as the amount of funding currently unliquidated for each ACRN.

                                                                                                                            

              (7)  Contract-wide: sequential ACRN order.  The payment office will make payment in sequential ACRN order within the contract or order, exhausting all funds in the previous ACRN before paying from the next ACRN using the following sequential order: alpha/alpha; alpha/numeric; numeric/alpha; and numeric/numeric.

 

              (8)  Contract-wide: contracting officer specified ACRN order.  The payment office will make payment in sequential ACRN order within the contract or order, exhausting all funds in the previous ACRN before paying from the next ACRN in the sequence order specified by the contracting officer.

 

              (9)  Contract-wide: by fiscal year.  The payment office will make payment using the oldest fiscal year appropriations first, exhausting all funds in the previous fiscal year before disbursing from the next fiscal year.  In the event there is more than one ACRN associated with the same fiscal year, the payment amount shall be disbursed from each ACRN within a fiscal year in the same proportion as the amount of funding obligated for each ACRN within the fiscal year.

 

              (10)  Contract-wide: by cancellation date.  The payment office will make payment using the ACRN with the earliest cancellation date first, exhausting all funds in that ACRN before disbursing funds from the next.  In the event there is more than one ACRN associated with the same cancellation date, the payment amount shall be disbursed from each ACRN with the same cancellation date in the same proportion as the amount of funding obligated for each ACRN with the same cancellation date.

 

              (11)  Contract-wide: proration.  The payment office will make payment from each ACRN within the contract or order in the same proportion as the amount of funding currently unliquidated for each ACRN.

 

              (12)  Other.  If none of the standard payment instructions identified in paragraphs (d)(1) through (11) of this section are appropriate, the contracting officer may insert other payment instructions, provided the other payment instructions--

 

                    (i)  Provide a significantly better reflection of how funds will be expended in support of contract performance; and

 

                    (ii)  Are agreed to by the payment office and the contract administration office.