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30 Σεπ 2024 · The objective of proposal analysis is to ensure that the final agreed-to price is fair and reasonable. (1) The contracting officer is responsible for evaluating the reasonableness of the offered prices.
A fair and reasonable price determination is an assessment by the Government that an offeror’s proposed price for a supply or service can be considered “fair and reasonable” on the basis of applying one or more price analysis techniques.
Price analysis is the process of examining and evaluating a proposed price without evaluating its separate cost elements or the proposed profit. General Information. FAR 15.404-1 (a) (1) requires the contracting officer determine that the price to be paid is fair and reasonable.
Price analysis is also used to verify that a cost analysis–based price objective is fair and reasonable. [5] For example, Joe’s Garage can assemble a single Chevy Impala and can provide actual material and labor pricing to show why $1.4 million is appropriate and supported by cost and pricing data.
The objective of proposal analysis is to ensure that the final agreed-to price is fair and reasonable. (1) The contracting officer is responsible for evaluating the reasonableness of the offered prices.
Cost analysis is the review and evaluation of the separate cost elements and profit or fee in an offeror’s or contractor’s proposal to determine a fair and reasonable price or to determine cost realism.
What follows is a listing of the most common methods or criteria used to determine a price fair and reasonable by price analysis. a. PRICE COMPETITION: When two or more acceptable offers are received and the lowest price is selected, the price of the lowest offered can be concluded to be fair and reasonable. b. COMPARABLE TO PRICE SOLD TO FED ...
