Detailed Answer
Price reasonableness determination:
**Analysis Techniques:**
- Competition (multiple offers)
- Comparison to similar purchases
- Comparison to published price lists
- Comparison to independent estimate
- Cost analysis (build-up review)
- Value analysis
**Factors Considered:**
- Market conditions
- Quantity being purchased
- Urgency of need
- Contractor capability
- Contract type risk
**Supporting Documentation:**
- Commercial price lists
- Previous contract prices
- Catalog prices
- GSA Schedule prices
- Independent cost estimates
**When Cost Analysis Used:**
- Sole source over thresholds
- Cost-reimbursement contracts
- When price analysis insufficient
- Major modifications
Want the full picture?
This answer is part of our comprehensive guide on this topic.
Read Full Guide: Pricing Strategy by Contract Type: FFP, T&M, Cost-Plus
