FAR 7.202—Policy.
Plain-English Summary
FAR 7.202 sets the policy for buying supplies in quantities that are economically sensible and not larger than the Government reasonably needs. It implements statutory requirements from 10 U.S.C. 3242 and 41 U.S.C. 3310, directing agencies to consider both total cost and unit cost when deciding how much to buy, but only to the extent that doing so is practicable. The section also addresses solicitation content: when practicable, solicitations for supply contracts must invite offerors to comment on whether the proposed quantity is economically advantageous and, if appropriate, to recommend alternative quantities that would be more economical. Those recommendations must include both total price and unit price for each recommended quantity. In practice, this section is about quantity planning, price break analysis, and using industry input to help the Government avoid overbuying or missing better pricing at different quantity levels.
Key Rules
Buy economical quantities
Agencies must procure supplies in quantities that produce the most advantageous total and unit cost to the Government, when practicable. This means quantity decisions should be driven by economic analysis, not just convenience or habit.
Do not overbuy
The quantity acquired may not exceed what the agency reasonably expects to need. Agencies must align purchases with actual anticipated requirements and avoid excess quantities that could create waste or inventory risk.
Use offeror input when practicable
For supply solicitations, the agency should, if practicable, include a provision asking offerors whether the proposed quantity is economically advantageous. This is intended to capture market insight on pricing at different volume levels.
Invite alternative quantity recommendations
If applicable, offerors should be invited to recommend one or more alternative quantities that would be more economical to the Government. The solicitation should make clear that such recommendations are welcome when they may improve value.
Require price detail for recommendations
Any recommended alternative quantity must include both the total price and the unit price for each quantity proposed. This allows the Government to compare price breaks and determine which quantity offers the best value.
Responsibilities
Agency
Plan supply purchases so the quantity ordered is economically advantageous and does not exceed reasonably expected needs. The agency must apply the statutory policy in acquisition planning and quantity decisions.
Contracting Officer
When preparing solicitations for supplies, include the offeror-invitation provision if practicable and evaluate quantity-related pricing information as part of the acquisition strategy. The contracting officer must ensure the solicitation supports informed quantity decisions.
Offeror/Contractor
If the solicitation includes the provision, provide an opinion on whether the proposed quantity is economically advantageous and, when appropriate, recommend alternative quantities with both total and unit prices. The offeror should use its pricing structure to identify potential savings at different quantities.
Practical Implications
This section helps agencies find price breaks and avoid buying too little or too much, which can materially affect total contract value.
A common pitfall is focusing only on unit price without considering total cost, storage, handling, shelf life, or actual need; the rule requires both economic advantage and reasonable quantity limits.
Another risk is failing to include the solicitation provision when it would be practicable to do so, which can reduce competition on quantity options and miss better pricing.
Offerors should be prepared to analyze and present alternative quantity pricing clearly; vague statements without total and unit prices will not satisfy the section’s intent.
Contracting officers should document the quantity rationale, especially where the chosen quantity differs from an offeror’s recommended alternative or where the provision is not used because it is not practicable.
Official Regulatory Text
(a) Agencies are required by 10 U.S.C. 3242 and 41 U.S.C.3310 to procure supplies in such quantity as- (1) Will result in the total cost and unit cost most advantageous to the Government, where practicable; and (2) Does not exceed the quantity reasonably expected to be required by the agency. (b) Each solicitation for a contract for supplies is required, if practicable, to include a provision inviting each offeror responding to the solicitation- (1) To state an opinion on whether the quantity of the supplies proposed to be acquired is economically advantageous to the Government; and (2) If applicable, to recommend a quantity or quantities which would be more economically advantageous to the Government. Each such recommendation is required to include a quotation of the total price and the unit price for supplies procured in each recommended quantity.