FAR 52.207-4—Economic Purchase Quantity-Supplies.
Plain-English Summary
FAR 52.207-4, Economic Purchase Quantity—Supplies, is a solicitation provision used to ask offerors whether the quantities requested by the Government are economically advantageous and, if not, what quantities would produce better pricing. It covers the offeror’s ability to comment on the solicitation quantities, recommend an economic purchase quantity, and provide total and unit prices for alternative quantities, including identifying significant price breaks at different quantity points. The provision also explains why the Government is asking for this information: to avoid buying in disadvantageous quantities and to build a data base for future acquisitions of the same items. In practice, this provision helps contracting personnel identify quantity discounts and market pricing patterns before award, while giving vendors a formal way to suggest more efficient ordering quantities. It also preserves the Government’s right to amend, cancel, and resolicit if the responses and the Government’s needs show that a different quantity should be acquired. Although the provision does not require the offeror to propose alternate quantities, it invites market intelligence that can improve buying decisions and reduce total acquisition cost.
Key Rules
Offerors may comment on quantities
The provision invites offerors to state whether the quantities requested in the solicitation are economically advantageous to the Government. This is an invitation, not a mandatory requirement, but it is intended to capture vendor insight on whether the stated quantities make sense from a pricing standpoint.
Alternative quantities may be recommended
If an offeror believes different quantities would be more advantageous, it may recommend an economic purchase quantity. The offeror should identify the quantity at which a significant price break occurs and, if there are multiple break points, provide that information as well.
Alternate pricing must be complete
When recommending different quantities, the offeror must quote both a total price and a unit price for the applicable items. This allows the Government to compare the original solicitation quantity against the proposed alternative quantities on an apples-to-apples basis.
Purpose is better buying decisions
The information is collected to avoid acquisitions in disadvantageous quantities and to help the Government build a data base for future purchases of the same supplies. The provision is therefore a market research and pricing tool, not a commitment to buy the recommended quantity.
Government may change the solicitation
The Government reserves the right to amend or cancel the solicitation and resolicit any individual item if the quotations received and the Government’s requirements indicate that different quantities should be acquired. This preserves flexibility when the market shows that the original quantities are not the most economical choice.
Responsibilities
Offeror
Review the solicitation quantities and, if desired, state whether they appear economically advantageous. If recommending a different quantity, identify the economic purchase quantity, provide total and unit prices for the applicable items, and note any significant price breaks at different quantity points.
Contracting Officer
Include the provision when prescribed, evaluate offeror input for pricing and quantity insights, and use the information to determine whether the solicitation quantities should be adjusted. If the responses and the Government’s needs support a different quantity, the contracting officer may amend, cancel, and resolicit as appropriate.
Government/Agency
Use the information to avoid buying in disadvantageous quantities and to build a pricing data base for future acquisitions. The agency should compare vendor recommendations with its actual requirements and acquisition strategy before deciding whether to revise the solicitation.
Practical Implications
This provision is most useful when quantity drives price breaks, so contractors should pay close attention to volume discounts and packaging thresholds before responding.
Offerors should not assume the Government will automatically adopt a recommended quantity; the recommendation is informational and may or may not affect the final solicitation or award.
A common pitfall is giving only a unit price for an alternate quantity without a total price, or vice versa; the provision specifically asks for both when different quantities are proposed.
Contracting officers should treat the responses as market intelligence, not as binding offers to buy alternate quantities, and should document any decision to amend or cancel based on the information received.
Because the Government may resolicit if quantities appear disadvantageous, vendors should be prepared for solicitation changes and should avoid building pricing assumptions on the original quantity alone.
Official Regulatory Text
As prescribed in 7.203 , insert the following provision: Economic Purchase Quantity-Supplies (Aug 1987) (a) Offerors are invited to state an opinion on whether the quantity(ies) of supplies on which bids, proposals or quotes are requested in this solicitation is (are) economically advantageous to the Government. _________________________________________________________________________________ _________________________________________________________________________________ (b) Each offeror who believes that acquisitions in different quantities would be more advantageous is invited to recommend an economic purchase quantity. If different quantities are recommended, a total and a unit price must be quoted for applicable items. An economic purchase quantity is that quantity at which a significant price break occurs. If there are significant price breaks at different quantity points, this information is desired as well. Offeror Recommendations Item Quantity Price Quotation Total ____________ ____________ ____________ ____________ (c) The information requested in this provision is being solicited to avoid acquisitions in disadvantageous quantities and to assist the Government in developing a data base for future acquisitions of these items. However, the Government reserves the right to amend or cancel the solicitation and resolicit with respect to any individual item in the event quotations received and the Government’s requirements indicate that different quantities should be acquired. (End of provision)