FAR section 52.207-4

FAR 52.207-4.pdf

Economic Purchase Quantities--Supplies FAR Sections Affected: 7.203 and 52.207-4

FAR section 52.207-4

OMB: 9000-0082

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FAC 2005–09 MAY 19, 2006
SUBPART 52.2—TEXT OF PROVISIONS AND CLAUSES

52.207-4

52.207-1 Notice of Standard Competition.
As prescribed in 7.305(a), insert the following provision:

respectively, either a letter of obligation or a fee-for-service
agreement, as those terms are defined in the Circular.

NOTICE OF STANDARD COMPETITION (MAY 2006)

(End of provision)

(a) This solicitation is part of a standard competition under
Office of Management and Budget Circular No. A-76
(Revised), Performance of Commercial Activities, dated May
29, 2003 (hereafter “the Circular”), to determine whether to
accomplish the specified work under contract or by Government performance.
(b) The Government will evaluate private sector offers, the
agency tender, and public reimbursable tenders, as provided
in this solicitation and the Circular.
(c) A performance decision resulting from this standard
competition will be publicly announced in accordance with
the Circular. If the performance decision favors a private sector offeror, a contract will be awarded. If the performance
decision favors an agency or a public reimbursable tender, the
Contracting Officer shall establish, respectively, either a Most
Efficient Organization letter of obligation or a fee-for-service
agreement, as those terms are defined in the Circular.
(d) As provided in the Circular, directly interested parties
may file contests, which are governed by the procedures in
Federal Acquisition Regulation 33.103. Until resolution of
any contest, or the expiration of the time for filing a contest,
only legal agents for directly interested parties shall have
access to the certified standard competition form, the agency
tender, and public reimbursable tenders.

(a) The Contractor shall give Government personnel who
have been or will be adversely affected or separated as a result
of award of this contract the right of first refusal for employment openings under the contract in positions for which they
are qualified, if that employment is consistent with post-Government employment conflict of interest standards.
(b) Within 10 days after contract award, the Contracting
Officer will provide to the Contractor a list of all Government
personnel who have been or will be adversely affected or separated as a result of award of this contract.
(c) The Contractor shall report to the Contracting Officer
the names of individuals identified on the list who are hired
within 90 days after contract performance begins. This report
shall be forwarded within 120 days after contract performance begins.

(End of provision)

ECONOMIC PURCHASE QUANTITY—SUPPLIES
(AUG 1987)

52.207-2 Notice of Streamlined Competition.
As prescribed in 7.305(b), insert the following provision:

(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.
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(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.

NOTICE OF STREAMLINED COMPETITION (MAY 2006)
(a) This solicitation is part of a streamlined competition
under Office of Management and Budget Circular No. A-76
(Revised), Performance of Commercial Activities, dated May
29, 2003 (hereafter “the Circular”), to determine whether to
accomplish the specified work under contract or by Government performance.
(b) The Government will evaluate the cost of private sector
and Agency or public reimbursable performance, as provided
in this solicitation and the Circular.
(c) A performance decision resulting from this streamlined
competition will be publicly announced in accordance with
the Circular. If the performance decision favors private sector
performance, the Contracting Officer shall either award a contract or issue a competitive solicitation for private sector
offers. If the performance decision favors Agency or public
reimbursable performance, the Agency shall establish,

52.207-3 Right of First Refusal of Employment.
As prescribed in 7.305(c), insert the following clause:
RIGHT OF FIRST REFUSAL OF EMPLOYMENT (MAY 2006)

(End of clause)
52.207-4 Economic Purchase Quantity—Supplies.
As prescribed in 7.203, insert the following provision:

Item

OFFEROR RECOMMENDATIONS
Quantity
Price
Quotation

Total

52.2-13

52.207-5

FEDERAL ACQUISITION REGULATION
OPTION TO PURCHASE EQUIPMENT (FEB 1995)

(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)
52.207-5 Option to Purchase Equipment.
As prescribed in 7.404, insert a clause substantially the
same as the following:

52.2-14

(FAC 2005–09)

(a) The Government may purchase the equipment provided
on a lease or rental basis under this contract. The Contracting
Officer may exercise this option only by providing a unilateral
modification to the Contractor. The effective date of the purchase will be specified in the unilateral modification and may
be any time during the period of the contract, including any
extensions thereto.
(b) Except for final payment and transfer of title to the
Government, the lease or rental portion of the contract
becomes complete and lease or rental charges shall be discontinued on the day immediately preceding the effective date of
purchase specified in the unilateral modification required in
paragraph (a) of this clause.
(c) The purchase conversion cost of the equipment shall be
computed as of the effective date specified in the unilateral
modification required in paragraph (a) of this clause, on the
basis of the purchase price set forth in the contract, minus the
total purchase option credits accumulated during the period of
lease or rental, calculated by the formula contained elsewhere
in this contract.


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