CFR > Title 41 - Public Contracts and Property Management > SUBTITLE C—Federal Property Management Regulations System > CHAPTER 101—FEDERAL PROPERTY MANAGEMENT REGULATIONS (parts 101-1 to 101-49) > SUBCHAPTER E—SUPPLY AND PROCUREMENT (parts 101-22 to 101-33) > PART 101-27—INVENTORY MANAGEMENT > SUBPART 101-27.3—Maximizing Use of Inventories (§101-27.300 to §101-27.305) > 101-27.304-2—Factors affecting the economic retention limit.

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.