FAR 7.204—Responsibilities of contracting officers.
Plain-English Summary
FAR 7.204 explains the contracting officer’s role when offerors provide economic purchase quantity data under solicitation provision 52.207-4. The section covers two main topics: transmitting offeror responses to the appropriate inventory management or requirements development activity, and deciding whether those responses warrant any change to the quantities being procured in the current acquisition. Its purpose is to make sure the Government uses offeror-supplied quantity pricing information as an input to inventory planning without disrupting the ongoing procurement unless there is a clear reason to do so. In practice, this means the contracting officer must route the data to the right agency specialists, generally leave the current buy unchanged, and only elevate the issue when the pricing spread suggests meaningful savings from a different order quantity. If consultation shows the Government should buy different quantities and the inventory manager agrees, the solicitation may need to be amended or canceled and reissued based on a new requisition. The section therefore balances procurement efficiency, inventory economics, and acquisition integrity.
Key Rules
Transmit offeror responses
Contracting officers must send offeror responses to solicitation provision 52.207-4 to the appropriate inventory management or requirements development activity, following agency procedures. The data are used to help inventory managers evaluate economic order quantities for supplies under their responsibility.
Use data as an input only
Economic purchase quantity data are only one factor in determining the most economical order quantity. Contracting officers should generally not change the quantities in the current procurement solely because of these responses.
Consult on significant price variation
If offeror responses show a significant price variation and there appears to be a meaningful savings opportunity, the contracting officer must consult the cognizant inventory manager or requirements development activity before award or negotiations proceed.
Amend or cancel if quantities change
If consultation shows the Government should order different quantities and the inventory manager or requirements development activity agrees, the solicitation should be amended or canceled and a new requisition obtained.
Follow agency procedures
The transmission and consultation process must be carried out in accordance with agency procedures, which may specify routing, documentation, and coordination requirements.
Responsibilities
Contracting Officer
Transmit offeror responses to the proper inventory management or requirements development activity; generally avoid changing procurement quantities based only on the data; identify significant price variation and consult the cognizant inventory manager or requirements development activity; and, if needed, amend or cancel the solicitation and obtain a new requisition.
Inventory Manager / Requirements Development Activity
Review the economic purchase quantity data, assess whether different order quantities would be more economical, and advise whether the solicitation should be amended or canceled and reissued.
Agency
Establish procedures for routing offeror responses and coordinating with inventory management or requirements development activities so the data are properly used in quantity planning.
Offerors
Provide economic purchase quantity responses when required by solicitation provision 52.207-4, enabling the Government to evaluate quantity-related pricing information.
Practical Implications
This section is mainly a coordination rule: the contracting officer is a conduit for quantity-pricing data, not the final analyst of inventory economics.
A common pitfall is overreacting to offeror price breaks and changing the buy without consulting the inventory manager or requirements activity.
Another risk is failing to document or route the responses promptly, which can prevent inventory specialists from using the data in future quantity planning.
If the data suggest a materially better quantity, the contracting officer may need to pause award or negotiations long enough to determine whether the solicitation itself is based on the wrong quantity assumption.
When the Government’s quantity decision changes, the remedy is not a simple internal tweak; the solicitation may need to be amended or canceled and re-solicited on a new requisition.
Official Regulatory Text
(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.