Contracting Test 6 Flashcards
What is the best method of price analysis
Other proposed prices
Factors of reasonable price
- Supply and demand
- General economic Conditions
- Competition
Analyzes prices in their entirety
Price AnalysisAlways required
Analyzes prices by reviewing the individual elements of cost (price) & the appropriateness & necessity of each element of cost
Cost AnalysisRequired if TINA applies
Independently reviewing cost elements to determine are they realistic for the work to be performed
Cost Realism AnalysisRequired on every cost type contract
Price Analysis Methods
- Comparison of prices received in response to the solicitation (other proposed prices)
- Comparison of previously proposed prices with current proposed prices for the same or similar items
- Parametric estimating methods
- Comparison with competitive published price
- Comparison with independent Government cost estimates
Preferred price analysis technique
Comparison of prices received in response to the solicitation
Cost tied to a single cost objective
Direct Cost
Cost tied to multiple contracts
Indirect Cost
How many price comparison techniques
5
When is a rental equivalency calculation required?
When one offeror does not use GPE
Generally recognized as ordinary and necessary for the conduct of the business or contract performance
Reasonable cost
Adjustments required by law or regulation in order to complete price evaluation
Price Related Factor
costs remain constant, even as activity level changes
Fixed Cost
Cost go up or down based on activity
Variable Cost
