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FAR and DFARS › FAR Part 4: Administrative and Information Matters › Subpart 4.10

FAR 4.1003 Establishing line items.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells contractors how to structure line items in a procurement instrument. It requires separate line items for deliverables that are separately identifiable, have a single unit or total price, a single accounting classification citation, a separate delivery schedule or performance location, or a single contract pricing type. This matters because it affects how deliverables are priced, funded, and tracked under the contract.

Applies to: Contractors and contracting officers establishing line items in a procurement instrument.

What it requires

  • Establish separate line items for deliverables that are separately identifiable.
  • Establish separate line items for deliverables with a single unit price or total price.
  • Establish separate line items for deliverables with a single accounting classification citation, unless the deliverable effort cannot be otherwise subdivided.
  • Establish separate line items for deliverables with a separate delivery schedule, destination, period of performance, or place of performance.

Key terms: line item · separately identifiable · first article · accounting classification citation · contract pricing type

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

Establish separate line items for deliverables that have the following characteristics except as provided at 4.1005-2:

(a) Separately identifiable.

(1) A supply is separately identifiable if it has its own identification (e.g., national stock number (NSN), item description, manufacturer's part number).

(2) Services are separately identifiable if they have no more than one statement of work or performance work statement.

(3) If the procurement instrument involves a first article (see subpart 9.3), establish a separate line item for each item requiring a separate approval. If the first article consists of a lot composed of a mixture of items that will be approved as a single lot, a single line item may be used.

(b) Single unit price or total price.

(c) Single accounting classification citation. A single deliverable may be funded by multiple accounting classifications when the deliverable effort cannot be otherwise subdivided.

(d) Separate delivery schedule, destination, period of performance, or place of performance.

(e) Single contract pricing type (e.g., fixed-price or cost-reimbursement).

Sections it refers to

Sections that refer to it

  • 4.1004 Establishing subline items.

← 4.1002 Applicability. · 4.1004 Establishing subline items. →

Rule changes for FAR Part 4

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 4.1003 Establishing line items · SpendQuery