Overview
This section establishes the federal mandate for agencies to procure supplies in quantities that optimize both total and unit costs while ensuring that purchases do not exceed the government's actual anticipated needs.
Key Rules
- Statutory Compliance: Agencies must adhere to 10 U.S.C. 3242 and 41 U.S.C. 3310 to ensure procurement quantities are "most advantageous" to the Government.
- Quantity Limits: Agencies are prohibited from procuring quantities that exceed what is reasonably expected to be required.
- Solicitation Requirements: When practicable, solicitations must include a provision inviting offerors to provide their opinion on whether the requested quantity is economically advantageous.
- Offeror Recommendations: Offerors are encouraged to recommend alternative quantities that would be more cost-effective, provided they include specific quotations for both total and unit prices for those alternatives.
Practical Implications
- This policy encourages "Economic Order Quantity" (EOQ) principles, allowing contracting officers to leverage industry expertise to find price break points and reduce waste.
- Contractors can gain a competitive advantage or add value by suggesting more efficient bulk-purchasing tiers that the government may not have identified during initial market research.