Line Item Meaning: Everything You Need to Know

In government contracting, a line item refers to a specific part of a contract that outlines the details of an expense or procurement. Government agencies use line-item budgets to allocate funds to various projects, ensuring each component is accounted for. For example, in a defense contract, separate line items may exist for research, manufacturing, and logistics. Line-item specifications are critical for accountability, as they allow for detailed tracking of expenditures and prevent budget mismanagement. Contractors must adhere to line-item requirements to ensure compliance with government regulations.