Techniques for Making a Fair and Reasonable Determination FASA made submission of cost or pricing data the least preferred method of determining price reasonableness.FAR 15.404-1(b)(2) lists seven price analysis techniques by which the Government can make a fair and reasonable price results for this questionHow do you determine fair and reasonable?How do you determine fair and reasonable?A fair and reasonable price is characterized by factoring industry and market pricing with the expected value and quality of products,solutions and/or services to be received.Fair and reasonable does not necessarily mean the lowest offer.Fair and reasonable pricing is determined by conducting either a price analysis or cost analysis.Reference vita.virginia.gov/supply-chain/scm-policies-forms/it-procurement results for this questionWhat is price realism analysis?What is price realism analysis?A Price Realism Analysis examines the performance risk of proposals in a fixed-price contract procurement,with particular attention to the risk of low-priced proposals,and may include cost realism analysis.Price and Cost Realism in Government Contracting
(1) Determine through cost or price analysis that the offered price is fair and reasonable and that adequate price competition exists (with approval of the determination at a level above the contracting officer) or another exception to the requirement for certified cost or pricing data applies (see FAR 15.403-1 (c) and 15.403-4).
When to use Price and/or Cost Analysis - DAUdau.eduArticle Content - DAUdau.eduArticle Content - DAUdau.eduArticle Content - DAUdau.eduFixed Price Incentive Firm Target (FPIF) Contract Type - DAUdau.eduRecommended to you based on what's popular FeedbackReasonable Price Definition Law InsiderReasonable Price means a decision reached jointly between a buyer and seller of property,reflecting a judgment influenced by the economic realities of the marketplace and the relative bargaining powers of the parties and is a price that provides the best total value in consideration of availability,delivery time,fitness for purpose,payment terms,quality,quantity,and service.Methods to Determine Price Reasonableness Purchasing INTRODUCTION University purchasing agents or buyers are the primary personnel who makeWHY PRICE OR COST ANALYSIS The most basic reason for requiring that price or costWHAT IS A PRICE ANALYSIS In simple terms,a price analysis is a review,analysis orWHAT IS A COST ANALYSIS A cost analysis is different from a price analysis.The majorMETHODS COMMONLY USED IN PRICE ANALYSIS In performing a price analysis,that is,COST ANALYSIS A cost analysis looks at the individual elements of the price (labor rates,directDOCUMENTATION Each price analysis or cost analysis MUST be documented in writing.
Was this helpful?People also askWhat is a fair and reasonable price?What is a fair and reasonable price?A fair and reasonable price is the price point for a good or service that is fair to both parties involved in the transaction.This amount is based upon the agreed-upon conditions,promised quality and timeliness of contract performance.In government contracting,a fair and reasonable price is subject to both statutory and regulatory limitations.What is fair and reasonable price? - Definition from