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Proposal analysis - Contract pricing, reasonableness, realism analysis Comptroller General - Key Excerpts New It is a fundamental principle of federal procurement law that procuring agencies must condition the award of a contract upon a finding that the contract contains "fair and reasonable prices.

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The purpose of a price reasonableness analysis is to prevent the government from paying too high a price for a contract. Crawford RealStreet Joint Venture, supra. An agency may use various price analysis techniques and procedures to ensure a fair and reasonable price, including the comparison of proposed prices to each other, to prices found reasonable on previous purchases, or to an independent government estimate.

The manner and depth of an agency's price analysis is a matter committed to the discretion of the agency, which we will not disturb provided that it is reasonable and consistent with the solicitation's evaluation criteria and applicable procurement statutes and regulations.

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More specifically, as DISA acknowledges, the RFP stated that the agency would evaluate the offerors' fully burdened fixed-price labor rates for reasonableness and that unreasonably high prices may be grounds for eliminating a proposal from competition.

Although the RFP did not stipulate the specific price analysis technique the agency intended to use, the RFP indicated that the agency "anticipated conditions of adequate competition.

Comparison of proposed prices received in response to the solicitation. Normally, adequate price competition establishes a fair and reasonable price.

Rather, the record shows that the PEB evaluated each offeror's price proposal to ensure that it was complete. Next, the PEB evaluated proposals to identify any potential unbalanced pricing. Finally, the PEB considered whether proposed prices were reasonable, concluding that every offeror's total Scenario of small scale food vendors price was fair and reasonable.

The PEB's entire price reasonableness analysis is set forth in two sentences: Price reasonableness is normally established by adequate competition FAR As this effort has had 35 Offerors provide proposals, it is implicit that price reasonableness has been determined at the macro level.

The PEB did not compare offerors' total proposed prices or their fully burdened fixed-price labor rates. Likewise, the contracting officer did not compare any prices at any level. Instead, in the pricing memorandum, the contracting officer stated that "[t]he presumption is that all proposed prices are fair and reasonable if there is adequate competition.

We find the agency's conclusions to be unreasonable. The mere receipt of multiple proposals is inadequate to assure that the prices proposed are fair and reasonable. Put another way, the presence of competition alone does not render prices per se reasonable.

As the plain language of this section indicates, a price reasonableness determination relying upon this price analysis technique requires a "[c]omparison of proposed prices received in response to the solicitation.

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There is no indication in the record that DISA, in fact, performed such a comparison. Because the agency failed to compare offerors' prices, the agency did not consider whether any of the proposed prices were unreasonably high, an analysis that the RFP expressly contemplated.

Rather, it is the favorable comparison of an awardee's price to its competitors' prices that provides the necessary assurance that a proposed price is fair and reasonable. Furthermore, the agency's conclusion that price comparison establishes price reasonableness must be rational.

Here, the record reflects a wide variance among total evaluated prices and labor rates. For instance, the highest-priced offeror proposed a total price that was more than two and a half times higher than the price of the lowest-priced offeror.

Scenario of small scale food vendors

The proposed total evaluated prices of the awardees contain a similarly wide variance with the highest-priced awardee proposing a price that is more than double the price of the lowest-priced awardee.

While this disparity does not establish that any particular offeror's prices are unreasonably high per se, it did not preclude a conclusion that the reasonableness of the higher-priced offerors' prices could not be established via comparison to their competitors' prices.

In our view, the disparity should have placed DISA on notice that it needed to take a closer look at what was driving the higher prices. As a final matter, intervenor Vencore points out that the agency ranked the 35 offerors from lowest to highest based on their total proposed prices and argues that "[t]his alone satisfies the Agency's obligation to assess reasonableness.

As an initial matter, although the depth of an agency's price analysis is a matter within the sound exercise of the agency's discretion, it must be consistent with the solicitation's evaluation criteria.

The record shows that the agency evaluated cost proposals for reasonableness, realism, and completeness before making adjustments to certain costs as part of its MPC analysis. With respect to cost reasonableness, the agency conducted a standard deviation analysis, first based on the average total cost of the four submitted proposals, and then additionally included the IGCE as part of the analysis.

AR, Tab 49, Cost Evaluation, at The agency also found all proposals to be complete. The agency also conducted a cost realism analysis, comparing cost elements of each proposal.Aztec cuisine was the cuisine of the Aztec Empire and the Nahua peoples of the Valley of Mexico prior to European contact in The most important staple was corn (), a crop that was so important to Aztec society that it played a central part in their lausannecongress2018.com like wheat in much of Europe or rice in most of East Asia, it was the food without which a meal was not a meal.

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Find great deals on eBay for small food scale. Shop with confidence. Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA.

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