FAR 5.404-1—Release procedures.
Plain-English Summary
FAR 5.404-1 explains when and how an agency may release long-range acquisition estimates to the public or industry before a specific solicitation is issued. It covers the purpose of those estimates, the limits on what can be disclosed, and the conditions the agency head must ensure before release. The rule is designed to help industry plan and prepare to meet future government needs, while preventing harmful market behavior such as hoarding, speculation, or attempts to corner the market. It also protects sensitive information by requiring classified material to move through security channels, requiring broad and simultaneous public distribution, and requiring clear disclaimers that the estimate is nonbinding and subject to change. In practice, this section governs how agencies communicate forecasted procurement needs, including required coordination with small business, public information, and public relations staff, and how they identify the contracting officer, item description, estimated quantities, and possible small business set-asides.
Key Rules
Release only for proper purposes
An agency head or designee may release long-range acquisition estimates only if the release will help industry plan and support the acquisition, and will not encourage harmful market behavior or suggest mobilization of the industry as a whole. The rule is intended to provide useful market visibility without distorting competition or creating panic buying.
Protect classified information
Any classified information must be released only through existing security channels and in accordance with agency security regulations. This means forecast information cannot be shared casually or outside approved security procedures.
Publicize broadly and simultaneously
The estimate must be publicized as widely as practicable to all parties at the same time using the methods allowed in FAR Part 5. Agencies should avoid selective disclosure that gives one firm an advantage over others.
Include required disclaimer language
Each release must state that the estimate is based on the best information available, is subject to modification, and is not binding on the Government. It must also say that more specific information will not be provided until the proposed action is synopsized through the GPE or the solicitation is issued.
Identify the contracting officer
The release must include the name and address of the contracting officer who will process the acquisition. This gives industry a clear point of contact for follow-up and future procurement questions.
Publicize changes promptly
Any modification to the original release must be publicized as soon as possible and in the same manner as the original release. Agencies should treat updates as part of the same public forecast process, not as informal side communications.
Coordinate and include planning details
Before release, the agency must coordinate with small business, public information, and public relations personnel as appropriate. The release should also state whether small business set-asides may be involved, and it must identify the item or class of items and the estimated quantity by quarter, fiscal year, or other period; it may also include prior purchase data, unit price, and the last supplier.
Responsibilities
Agency Head or Designee
Decide whether a long-range acquisition estimate may be released and ensure the release meets all required conditions, including proper purpose, security handling, broad public dissemination, required disclaimers, contracting officer identification, timely updates, and internal coordination.
Contracting Officer
Be identified in the release as the point of contact for the acquisition and be prepared to process the procurement once acquisition action begins. The contracting officer also helps ensure the forecast aligns with the eventual acquisition strategy and synopsis requirements.
Small Business Personnel
Review and coordinate releases as appropriate, especially where small business set-asides may be involved. They help ensure the forecast does not mislead industry about set-aside status before a formal acquisition decision is made.
Public Information and Public Relations Personnel
Coordinate on the timing, wording, and distribution of the release so the information is communicated consistently and broadly without creating confusion or selective advantage.
Security Personnel
Ensure any classified information is handled and released only through approved security channels and in accordance with agency security rules.
Agency Acquisition Staff
Prepare the estimate with the required item descriptions, quantities, and other optional planning data, and ensure any later changes are promptly publicized in the same manner as the original release.
Practical Implications
This section is about market forecasting, not commitment. Contractors may use the information to plan labor, materials, and capacity, but they should not treat it as a promise that the Government will buy exactly what is forecasted.
Selective sharing is a major risk. If an agency gives forecast information to one firm before others, it can create fairness problems and undermine the purpose of the rule.
The required disclaimer matters. Agencies should not phrase the release in a way that sounds like a guaranteed buy or a final acquisition decision, because the estimate is expressly nonbinding and subject to change.
Small business status is often uncertain at the forecast stage. Agencies should avoid implying that a set-aside decision has already been made unless and until acquisition action is initiated and the determination is actually made.
Contractors should watch for updates. Because modifications must be publicized promptly, firms should monitor revised forecasts rather than relying on an old estimate when making business decisions.
Official Regulatory Text
(a) Application . The agency head, or a designee, may release long-range acquisition estimates if the information will- (1) Assist industry in its planning and facilitate meeting the acquisition requirements; (2) Not encourage undesirable practices ( e.g., attempts to corner the market or hoard industrial materials); and (3) Not indicate the existing or potential mobilization of the industry as a whole. (b) Conditions . The agency head shall ensure that- (1) Classified information is released through existing security channels in accordance with agency security regulations; (2) The information is publicized as widely as practicable to all parties simultaneously by any of the means described in this part; (3) Each release states that- (i) The estimate is based on the best information available; (ii) The information is subject to modification and is in no way binding on the Government; and (iii) More specific information relating to any individual item or class of items will not be furnished until the proposed action is synopsized through the GPE or the solicitation is issued; (4) Each release contains the name and address of the contracting officer that will process the acquisition; (5) Modifications to the original release are publicized as soon as possible, in the same manner as the original; and (6) Each release- (i) Is coordinated in advance with small business, public information, and public relations personnel, as appropriate; (ii) Contains, if applicable, a statement that small business set-asides may be involved, but that a determination can be made only when acquisition action is initiated; and (iii) Contains the name or description of the item, and the estimated quantity to be acquired by calendar quarter, fiscal year, or other period. It may also contain such additional information as the number of units last acquired, the unit price, and the name of the last supplier.