FAC 085 Key Information Review Price Reasonableness

Question 1

what part of the far deals with fair and reasonable pricing?

Answer 1

13.106-3(a)

Question 2

Wat is the contracting limit that allows for fewer regulations when making awards

Answer 2

Micro purchase threshold

Question 3

Where is the current threshold found in the FAR?

Answer 3

section 2.101

Question 4

What part of the far deals with other acceptable methods for determining price reasonableness?

Answer 4

13.106-3(a)(2)

Question 5

What are the three reasons market research is needed ?

Answer 5

1) decisions during pre-solicitation phase will play role in determining final price paid.
2) better you understand marketplace, better you can make decisions that meet government needs
3) your understanding of the market will enable you to develop a better estimate

Question 6

Why would you do a price comparison with prices found reasonable on previous purchases?

Answer 6

If you receive one offer

Question 7

Why would you use a current price list or catalog and what should you look out for?

Answer 7

1) they can be helpful for comparison
2) the prices may be inflated

NOTE- this method is much less desirable than price competition or previous purchase history comparisons

Question 8

What other methods are allowable but less desirable?

Answer 8

• comparison with similar items in related industry
  -CO’s personal knowledge
• Comparison to the independent government estimate

Question 9

What type of documentation is required for Simplified Acquisitions above the micropurchase threshold?

Answer 9

• putting quotes in a file (if competitive comparable quotations are received)
• statement in contract file describing how they determined the price to be fair and reasonable using the other methods (if only one response was received)