7.204 Responsibilities of contracting officers
Source: FAR 7.204 on acquisition.gov
Contracting officers must transmit economic purchase quantity data to inventory managers and consult them before changing order quantities when significant price variations and savings are identified.
Overview
FAR 7.204 outlines the specific responsibilities of contracting officers regarding the handling of economic purchase quantity data provided by offerors in response to solicitation provision 52.207-4. Contracting officers must transmit this data to the appropriate inventory management or requirements development activities, following agency procedures. The purpose is to support inventory managers in determining optimal order quantities for supplies. While economic purchase quantity data is just one factor in procurement planning, contracting officers are generally not required to adjust order quantities based solely on this information. However, if offeror responses reveal significant price variations and potential savings, contracting officers must consult with inventory managers before proceeding. If it is determined that different quantities should be ordered, the solicitation may need to be amended or canceled, and a new requisition initiated.
Key Rules
- Transmission of Offeror Data
- Contracting officers must forward economic purchase quantity data from offerors to inventory management or requirements development activities as per agency procedures.
- Action on Price Variations
- If significant price differences and savings potential are identified, contracting officers must consult with inventory managers before making award decisions or entering negotiations.
- Amendment or Cancellation of Solicitations
- If consultation reveals a need to change order quantities, the solicitation should be amended or canceled, and a new requisition obtained.
Responsibilities
- Contracting Officers: Transmit offeror data, consult with inventory managers on significant price variations, and amend/cancel solicitations if necessary.
- Contractors: Provide accurate economic purchase quantity data in response to solicitations.
- Agencies: Establish procedures for data transmission and support inventory management decisions.
Practical Implications
- Ensures that economic purchase quantity data is used effectively in supply planning.
- Prevents unnecessary changes to procurement quantities unless justified by significant savings.
- Promotes collaboration between contracting and inventory management functions, reducing procurement inefficiencies and missed savings opportunities.
(a) Contracting officers are responsible for transmitting offeror responses to the solicitation provision at 52.207-4 to appropriate inventory management/requirements development activities in accordance with agency procedures. The economic purchase quantity data so obtained are intended to assist inventory managers in establishing and evaluating economic order quantities for supplies under their cognizance.
(b) In recognition of the fact that economic purchase quantity data furnished by offerors are only one of many data inputs required for determining the most economical order quantities, contracting officers should generally take no action to revise quantities to be acquired in connection with the instant procurement. However, if a significant price variation is evident from offeror responses, and the potential for significant savings is apparent, the contracting officer shall consult with the cognizant inventory manager or requirements development activity before proceeding with an award or negotiations. If this consultation discloses that the Government should be ordering an item of supply in different quantities and the inventory manager/requirements development activity concurs, the solicitation for the item should be amended or canceled and a new requisition should be obtained.