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FAR and DFARS › FAR Part 8: Required Sources of Supplies and Services › Subpart 8.4

FAR 8.405-4 Price reductions.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section allows ordering activities to ask for a price reduction at any time before placing an order, establishing a blanket purchase agreement (BPA), or during the annual BPA review. It requires them to seek a price reduction when the order or BPA exceeds the simplified acquisition threshold. It also clarifies that schedule contractors do not have to extend a price reduction given to one ordering activity for a specific order or BPA to all schedule users.

Applies to: Ordering activities and schedule contractors under Federal Supply Schedules

What it requires

  • Seek a price reduction when the order or BPA exceeds the simplified acquisition threshold

Key terms: ordering activity · price reduction · BPA · simplified acquisition threshold · schedule contractors

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

Ordering activities may request a price reduction at any time before placing an order, establishing a BPA, or in conjunction with the annual BPA review. However, the ordering activity shall seek a price reduction when the order or BPA exceeds the simplified acquisition threshold. Schedule contractors are not required to pass on to all schedule users a price reduction extended only to an individual ordering activity for a specific order or BPA.

Sections that refer to it

  • 8.404 Use of Federal Supply Schedules.
  • 8.405-1 Ordering procedures for supplies, and services not requiring a statement of work.
  • 8.405-2 Ordering procedures for services requiring a statement of work.
  • 8.405-3 Blanket purchase agreements (BPAs).

← 8.405-3 Blanket purchase agreements (BPAs). · 8.405-5 Small business. →

Rule changes for FAR Part 8

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 8.405-4 Price reductions · SpendQuery