SpendQueryBeta

FAR and DFARS › FAR Part 8: Required Sources of Supplies and Services › Subpart 8.4

FAR 8.406-1 Order placement.

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 explains how ordering activities can place orders under schedule contracts. It allows oral orders in some cases but requires written orders for certain supplies, services, and brand-name specifications over $25,000. It also lists the information that must be included in orders, such as shipping and billing addresses, contract number, delivery terms, and item descriptions.

Applies to: Ordering activities placing orders against schedule contracts

What it requires

  • Place orders directly with the contractor in accordance with the pricelists.
  • Ensure regulatory and statutory requirements of the requiring agency have been applied before placing the order.
  • Include required information in orders, such as shipping and billing addresses, contract number, agency order number, delivery terms, and item descriptions.

Key terms: ordering activities · statement of work · simplified acquisition threshold · schedule contracts · pricelists

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

The text

(a) Ordering activities may place orders orally, except for—

(1) Supplies and services not requiring a statement of work exceeding the simplified acquisition threshold;

(2) Services requiring a statement of work (SOW); and

(3) Orders containing brand-name specifications that exceed $25,000.

(b) Ordering activities may use Optional Form 347, an agency-prescribed form, or an established electronic communications format to order supplies or services from schedule contracts.

(c) The ordering activity shall place an order directly with the contractor in accordance with the terms and conditions of the pricelists (see 8.402(b)). Prior to placement of the order, the ordering activity shall ensure that the regulatory and statutory requirements of the requiring agency have been applied.

(d) Orders shall include the following information in addition to any information required by the schedule contract:

(1) Complete shipping and billing addresses.

(2) Contract number and date.

(3) Agency order number.

(4) F.o.b. delivery point; i.e., origin or destination.

(5) Discount terms.

(6) Delivery time or period of performance.

(7) Special item number or national stock number.

(8) Line item or subline item.

(9) A statement of work for services, when required, or a brief, complete description of each item (when ordering by model number, features and options such as color, finish, and electrical characteristics, if available, must be specified).

(10) Quantity and any variation in quantity.

(11) Number of units.

(12) Unit price.

(13) Total price of order.

(14) Points of inspection and acceptance.

(15) Other pertinent data; e.g., delivery instructions or receiving hours and size-of-truck limitation.

(16) Marking requirements.

(17) Level of preservation, packaging, and packing.

Sections it refers to

Sections that refer to it

  • 53.213 Simplified acquisition procedures (SF's 18, 30, 44, 1165, and 1449, and OF's 336, 347, and 348).

← 8.406 Ordering activity responsibilities. · 8.406-2 Inspection and acceptance. →

Rule changes for FAR Part 8

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

FAR 8.406-1 Order placement · SpendQuery