Understanding Task Order Contract: Key Legal Insights

Definition & Meaning

A task order contract is a type of agreement used primarily for services that allows for the issuance of orders for specific tasks, without requiring a fixed quantity of services. Instead, it sets a minimum or maximum amount of services that can be ordered throughout the contract's duration. This flexibility is particularly useful for government agencies and contractors who need to manage varying workloads and project demands over time.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A government agency requires IT support services but is unsure of the exact number of hours needed each month. They enter into a task order contract with a vendor, allowing them to request support as needed within set limits.

Example 2: A construction firm has a task order contract with a city to perform various maintenance tasks. The city can issue orders for specific projects throughout the year without needing to negotiate a new contract for each task. (hypothetical example)

Comparison with related terms

Term Definition Difference
Indefinite Delivery Contract A contract that provides for an indefinite quantity of supplies or services during a fixed period of time. Task order contracts focus specifically on services and allow for task orders, while indefinite delivery contracts can include goods.
Fixed-Price Contract A contract where the price is set and not subject to change regardless of the contractor's costs. Task order contracts allow for flexibility in the amount of services ordered, while fixed-price contracts do not.

What to do if this term applies to you

If you are involved in a situation that requires a task order contract, consider the following steps:

  • Determine the specific services you need and the potential volume of work.
  • Consult with a legal professional or use templates from US Legal Forms to draft or review your contract.
  • Ensure compliance with relevant procurement regulations and guidelines.

Quick facts

Attribute Details
Typical Use Government and contractor services
Flexibility Allows for varying quantities of services
Regulatory Framework 41 U.S.C. § 253k

Key takeaways

Frequently asked questions

A task order contract is an agreement that allows for the performance of various tasks without specifying a fixed quantity of services.