[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: 41CFR101-27.304-2]



[Page 124]

 

           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT

 

          CHAPTER 101--FEDERAL PROPERTY MANAGEMENT REGULATIONS

 

PART 101-27_INVENTORY MANAGEMENT--Table of Contents

 

             Subpart 101-27.3_Maximizing Use of Inventories

 

Sec. 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.