Planning for the Purchase of Supplies in Economic Quantities
FAR Subpart 7.2 requires agencies and contracting officers to plan supply purchases in quantities that maximize cost efficiency and operational effectiveness.
Overview
FAR Subpart 7.2 establishes requirements for federal agencies to plan purchases of supplies in economic quantities, aiming to achieve cost savings and operational efficiency. This subpart outlines the policy that agencies must consider the most economical purchase quantities, provides guidance on including specific solicitation provisions, and details the responsibilities of contracting officers in this process. The regulation ensures that agencies avoid unnecessary costs associated with frequent or small-quantity purchases and encourages coordination among agencies to consolidate requirements when possible.
Key Rules
- Scope of Subpart (7.200)
- Applies to the planning and acquisition of supplies, focusing on purchasing in quantities that are economically advantageous.
- Policy (7.202)
- Agencies must plan purchases to take advantage of economic order quantities and avoid unnecessary administrative and storage costs.
- Solicitation Provision (7.203)
- Requires inclusion of a provision in solicitations to allow offerors to recommend different quantities for economic advantage.
- Responsibilities of Contracting Officers (7.204)
- Contracting officers must analyze requirements, coordinate with other agencies when appropriate, and document decisions regarding purchase quantities.
Responsibilities
- Contracting Officers: Analyze supply requirements, consider economic order quantities, coordinate with other agencies, include required solicitation provisions, and document rationale for purchase quantities.
- Contractors: Review solicitation provisions and, when appropriate, propose alternative quantities that may be more economical.
- Agencies: Oversee acquisition planning to ensure compliance with economic quantity requirements and promote interagency coordination.
Practical Implications
- This subpart exists to reduce costs and improve efficiency in government supply purchases.
- It impacts daily contracting by requiring careful analysis of purchase quantities and encouraging collaboration.
- Common pitfalls include failing to consider economic order quantities or neglecting to document the rationale for purchase decisions.