Contract Line Item Number (CLIN)

A Contract Line Item Number (CLIN) is a number assigned to a particular line item in a contract. NATO's Communications and Information Agency (NCIA) defines it as a "sequence number assigned to a particular line item in a given Contract." The definition appears in the NCIA material-data documentation.

In U.S. defence procurement, a CLIN identifies separately identifiable or deliverable supplies or services, as described in the U.S. Department of Defense guidance. Each CLIN works as a reference point. It ties a described item, a quantity and a price to a single number that both buyer and supplier can use in the contract, in invoicing and in shipping records.

How NATO and the U.S. Department of Defense use the term

The U.S. Department of Defense describes a line item as covering goods or services that can be identified, separated, and delivered or performed individually, according to its Line Item Guide. A contract is divided into these units so each can be described, priced and tracked on its own.

NATO uses the same concept in its own contracting documents. The NCIA uses CLINs in its material-data fields. Its Contract General Terms and Conditions require the contract number and the CLIN to appear in specified packing-list information.

CLIN numbering under DFARS subpart 204.71

In U.S. defence contracting, DFARS subpart 204.71 sets the policies and procedures for assigning contract line item numbers. It establishes a uniform contract line-item-numbering system across defence contracts.

• Basic CLIN: normally four numeric digits, from 0001 through 9999, as set out in the DFARS Procedures, Guidance and Information (PGI) 204.71.
• Subline item: a subline item may add two numeric or alphabetic characters to the basic CLIN.
• Match to the solicitation: the contract line-item number is generally intended to match the solicitation line-item number.
• NATO format: the NCIA material-data sheet allows a CLIN of up to 10 digits.

A CLIN is not the same as an Accounting Classification Reference Number (ACRN). The CLIN identifies the contractual deliverable or service. The ACRN links contract line-item information to an accounting classification, a distinction covered in the same DFARS subpart.

Where Canadian suppliers meet CLINs

The Canadian Trade Commissioner Service explains that Canadian contractors reading U.S. government solicitations will find individual supplies and services listed by CLIN or SubCLIN. Its guide for Canadian contractors on U.S. government procurement places these descriptions and prices in Section B of the solicitation, titled "Supplies or Services and Prices and Costs."

NATO contracts are the second place CLINs turn up for Canadian firms. A Canadian supplier performing a NATO contract must keep the CLIN reference in the contract documentation and packing information wherever the contract terms require it.

What a CLIN means for a supplier bidding on Canadian public contracts

CLINs are the line-item convention of U.S. and NATO contracting. If your firm bids on U.S. government or NATO work, treat each CLIN as a separate pricing and delivery obligation.

• Read the description and quantity for every CLIN in Section B before pricing.
• Enter a price against each CLIN or SubCLIN that the solicitation lists.
• Carry the CLIN through to invoices, shipping records and packing lists where the contract calls for it.
• For NATO contracts, include the contract number and the CLIN on the packing-list information the terms specify.

Canadian solicitations may label their items, deliverables or schedules differently. Follow the numbering and pricing instructions in each tender document as written.