[Code of Federal Regulations]

[Title 41, Volume 2]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 41CFR101-25.101-2]



[Page 72-73]

 

           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT

 

          CHAPTER 101--FEDERAL PROPERTY MANAGEMENT REGULATIONS

 

PART 101-25_GENERAL--Table of Contents

 

                    Subpart 101-25.1_General Policies

 

Sec. 101-25.101-2  Supply through storage and issue.



    The following criteria shall govern in determining whether an item 

can be most advantageously supplied through storage and issue to use 

points:

    (a) The item shall be physically adaptable to storage and issue and 

of such a character that it is feasible to forecast overall requirements 

of the use points served with reasonable accuracy;

    (b) Rate of use and frequency of ordering at use points shall be 

sufficient to warrant storage and issue;

    (c) The rate of deterioration or obsolescence shall be sufficiently 

low to avoid unnecessary loss; and

    (d) Conditions exist where any of the following factors require 

supply through storage and issue (except that dangerous commodities of 

high weight and density, or commodities highly susceptible to damage 

normally should not be considered for supply through storage and issue 

unless one or more of such factors are determined to be of overriding 

importance)--

    (1) Where price advantage through bulk buying is sufficient to 

render storage and issue more economical, all costs, both direct and 

indirect, considered.

    (2) Where close inspection or testing is necessary to secure 

quality, or where repetitive inspection and test of small lots are 

prohibitive from the standpoint of cost or potential urgency of need.

    (3) Where advance purchase and storage are necessitated by long 

procurement leadtime.

    (4) Where an item is of special manufacture or design and is not 

readily available from commercial sources.

    (5) Where an adequate industry distribution system does not exist to 

assure availability at use point.

    (6) Where volume purchases are necessary to secure timely deliveries 

and advantageous prices.



[[Page 73]]



    (7) Where market conditions are such that supply through storage and 

issue is required to assure adequate supply.

    (8) Where stocking of supplies and equipment necessary for 

implementation of emergency plans is required for an indefinite period.