Price or Cost Analysis

Question 1

To increase competition the Government should ____________

Answer 1

remove unnecessary financial and performance risk to potential offerors

Question 2

Pricing is the process of ______________

Answer 2

establishing a reasonable amount or amounts to be paid for supplies or services

Question 3

In accordance with FAR 15.401 price means ____________

Answer 3

cost plus any fee or profit applicable to the contract type

Question 4

In regards to price, the KO shall:

Answer 4

1. purchase supplies and services from responsible sources at fair and reasonable prices
2. price each contract separately and independently and not:
   —-use proposed price reductions under contracts as an evaluation factor
   —-consider losses or profits realized or anticipated under other contracts
3. not include in a contract price any amount for a specified contingency that provides for a price adjustment based upon the occurrence of that emergency

Question 5

Is the term “fair and reasonable” explicitly defined in the FAR?

Answer 5

No, it is based on the judgment of the KO

Question 6

“Price or cost” shall be evaluated in every

Answer 6

source selection

Question 7

What normally establishes price reasonableness?

Answer 7

competition