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In this tutorial, Shelly explains what a Contract Line Item Number (CLIN) is and its importance in defense contracts. CLINs break down contracts by specific commodities being procured, such as labor hours, travel funding, product quantities, and special equipment. They serve to identify supplies or services as distinct line items, ensuring accounting traceability. CLINs are mandatory for various contract types, including government-wide acquisition contracts, multi-agency contracts, federal supply schedule contracts, indefinite delivery contracts, purchase orders, and task and delivery orders. Each CLIN must satisfy four specific criteria, which Shelly outlines in the tutorial.