41 CFR § 101-27.304-2 - Factors affecting the economic retention limit.
---
identifier: "/us/cfr/t41/s101-27.304-2"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "41 CFR § 101-27.304-2 - Factors affecting the economic retention limit."
title_number: 41
title_name: "Public Contracts and Property Management"
section_number: "101-27.304-2"
section_name: "Factors affecting the economic retention limit."
chapter_number: 101
chapter_name: "FEDERAL PROPERTY MANAGEMENT REGULATIONS"
subchapter_number: "E"
subchapter_name: "SUPPLY AND PROCUREMENT"
part_number: "101-27"
part_name: "27—INVENTORY MANAGEMENT"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c)."
cfr_part: "101-27"
---
# 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.