---
kind: "section"
citation: "48 C.F.R. § 247.271-1"
title: "48"
number: "247.271-1"
heading: "Policy."
url: "https://uscodex.org/cfr/48/247.271-1"
---

# §247.271-1. Policy.

- (a) **Annual contracts.** Normally—
  - (1) **Use requirements contracts to acquire services for the—**
    - (i) Preparation of personal property for shipment or storage; and
    - (ii) **Performance of intra-area movement.**
  - (2) **Award contracts on a calendar year basis.**
  - (3) **Provide for option years.**
  - (4) **Award contracts, or exercise option years, before November 1 of each year, if possible.**
- (b) **Areas of performance.** Define clearly in the solicitation each area of performance.
  - (1) **Establish one or more areas; however, hold the number to a minimum consistent with local conditions.**
  - (2) Each schedule may provide for the same or different areas of performance. Determine the areas as follows—
    - (i) **Use political boundaries, streets, or any other features as lines of demarcation.** Consider such matters as—
      - (A) Total volume;
      - (B) Size of overall area; and
      - (C) **The need to service isolated areas of high population density.**
    - (ii) Specifically identify frequently used terminals, and consider them as being included in each area of performance described in the solicitation.
- (c) **Maximum requirements-minimum capability.** The contracting officer must—
  - (1) Establish realistic quantities on the Estimated Quantities Report in DoD 4500.9-R, Defense Transportation Regulation, Part IV;
  - (2) **Ensure that the Government's minimum acceptable daily capability—**
    - (i) Will at least equal the maximum authorized individual weight allowance as prescribed by the Joint Federal Travel Regulations; and
    - (ii) **Will encourage maximum participation of small business concerns as offerors.**

## Notes

### Amendments

[56 FR 36466, July 31, 1991, as amended at 65 FR 50145, Aug. 17, 2000. Redesignated at 75 FR 51417, Aug. 20, 2010]

### Authority

Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

### Source

Source: 56 FR 36466, July 31, 1991, unless otherwise noted.

### Amendments

[56 FR 36466, July 31, 1991, as amended at 65 FR 50145, Aug. 17, 2000. Redesignated at 75 FR 51417, Aug. 20, 2010]