Cost price analysis Forms for Salt Lake
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FAQ
FTA requires a "cost analysis" (i.e., evaluating the contractor's specific elements of estimated cost and profit) when contracting on a sole source basis. We would advise issuing the supplier a formal written request for a cost proposal in a format that your technical personnel could most effectively evaluate.
When two or more acceptable offers are received and the lowest price is selected, the price of the lowest offerer can be concluded to be fair and reasonable. It is noted that generally where the difference in prices between the two offers differs by less than 15 percent, the price competition is said to exist.
Cost analysis is the evaluation of the separate elements (e.g., labor, materials, etc.) that make up a contractor's total cost proposal or price (for both new contracts and modifications) to determine if they are allowable, directed related to the requirement and ultimately, reasonable. top of page
Cost analysis and price analysis are two unique methods of projecting costs for projects and programs. Price Analysis looks purely at the unit price from a vendor while Cost Analysis incorporates the reasonable cost to the vendor of producing that item to determine if the price quotes are fair and appropriate.
The cost analysis techniques listed in FAR 15.404-1(c)(2) include:Verification of cost data or pricing data and evaluation of cost elements.Evaluating the effect of the offeror's current practices on future costs.More items...
How do you do price analysis?Document your cost structure.Capture your main competitors' prices.Estimate how sensitive your market is to price fluctuations.Calculate the price and volume that will maximize profit.Recommend a price.