TITLE 41 - PUBLIC CONTRACTS AND PROPERTY MANAGEMENT

SUBTITLE C - FEDERAL PROPERTY MANAGEMENT REGULATIONS SYSTEM

CHAPTER 101 - FEDERAL PROPERTY MANAGEMENT REGULATIONS

SUBCHAPTER E - SUPPLY AND PROCUREMENT

PART 101 - 27 - INVENTORY MANAGEMENT

101 - 27.304 - 2 - Factors affecting the economic retention limit.

  (a) The economic retention limit may be increased where: (1) The item is of special manufacture and relates to an end item of equipment which is expected to be in use beyond the economic retention time limit; or (2) Costs incident to holding an additional quantity are insignificant and obsolescence and deterioration of an item are unlikely.

  (b) The economic retention limit should be reduced under the following conditions: (1) The related end item of equipment is being phased out or an interchangeable item is available; or (2) The item has limited storage life, is likely to become obsolete, or the age and condition of the item does not justify the full retention limit.