2815 PRICE ANALYSIS

2815.1 The contracting officer shall perform a price analysis in every procurement to examine and evaluate a proposed price to determine its reasonableness without evaluating separate cost elements and proposed profit.

2815.2 The analysis may be performed using one or more of the following techniques:

(a) Comparison of price quotations received in response to the solicitation;

(b) Comparison of prior quotations and contract prices with current quotations for the same or similar end items;

(c) Application of rough yardsticks (such as dollars per pound, or other units) to highlight significant inconsistencies that warrant additional pricing inquiry;

(d) Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discounts or rebate arrangements; and

(e) Comparison of proposed prices with independent Board cost estimates.

2815.3 Price analysis shall also be used to determine the truth of a representation that certain items are commercial items with established catalog or market prices sold in substantial quantities to the general public and that, as a consequence, the quoted price is reasonable.

SOURCE: Final Rulemaking published at 37 DCR 4081, 4097-98 (June 22, 1990).