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section7.200

Scope of subpart

Overview

This section establishes the framework for how government agencies should engage with offerors to identify the most cost-effective and efficient quantities for supply procurement.

Key Rules

  • Information Gathering: Directs agencies to solicit data from industry regarding quantity-based pricing structures.
  • Strategic Planning: Focuses on identifying "advantageous quantities" to optimize the use of government funds.
  • Applicability: Specifically targets the procurement phase of supplies rather than services or construction.

Practical Implications

  • Contracting officers use this subpart to request "Economic Order Quantity" (EOQ) information, allowing the government to take advantage of tiered pricing or bulk discounts.
  • It requires agencies to balance the benefits of lower unit prices against the costs of carrying and maintaining inventory.

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