Price analysis in various situations

Comparison of Published Price List This method should only be used for materials that are sufficiently similar to items or services are available to the general public and whose price would appear in a published price list. It is the vehicle price that you must determine to be fair and reasonable, and thus that price is the only one with which you need to be concerned as far as a price analysis is concerned.

May Back to top Q. The contract modification you describe will not affect the price of the contract, nor will it authorize any work. Do you know where I could find it? This includes variable cost, fixed cost, and semi-variable cost.

The contract you describe would certainly require the agency to receive from this contractor a detailed cost proposal, and the agency would be required under FTA regulations to evaluate the various cost elements and the proposed profit prior to conducting negotiations and awarding the contract.

The cost to the vehicle supplier of the MDT is of no concern to your agency if the supplier is offering you a firm fixed price for the entire vehicle. However, when comparing these price lists, it is important to consider standard industry discounts for the items or services.

This is due to the fact that the same MDTs were procured less than a year ago and a full-blown price analysis was performed at that time. One cannot assume the GSA did a cost analysis of the consulting rate; e. The pricing data should of course be from competitive procurements, catalogue prices if applicable and if the items are sold in substantial quantities to the general public.

Problems or questions about the site, please contact webdev whoi. A grantee should perform a cost analysis for all sole source procurements. The lowest final price is not reasonable, and this finding can be supported by facts.

The idea here is that the marketplace will work to keep the prices competitive.

Cost/Price Analysis

Since the farebox is a commercial item, we would not expect the vendor to be willing to submit cost and profit regarding the production costs of this item, but we would expect the vendor to provide historical price information regarding sales to other customers so that you can establish the reasonableness of the price quoted on your procurement.

During closeout of the contract, a deductive change order will be executed to deduct any remaining funds in the PS account. A part of this analysis is verification of pricing.

An internal agency performed a cost analysis that only evaluated management services, and the analysis occurred subsequent to contract award.

Pricing Strategies

We are not aware of an industry price benchmark for the hourly rate for consultants that would provide technical services as you describe. This must be referenced when procuring such items.

Price Analysis Techniques

Section II of this Guide offers several ways to conduct a price analysis, which you should find helpful. Many times, it is difficult to find comparable items or services.

This cost information would represent the contractor's estimated costs for direct labor, overhead, other direct costs subcontracts, travel, materials, etc. There are many ways to price a product. Does Paragraph 10 FTA As to the differences in cost estimates, we would think that obtaining competitive price quotes from a number of companies would give you a legitimate basis for doing price analysis instead of cost analysis.

The total cost of acquisition must be analyzed. Again, an explanation of the similarities must accompany this analysis. We would also include competitive cost-type contracts where offerors are not committing to fixed prices and are submitting cost elements for evaluation and negotiation.

We issued an RFP for Fareboxes. Then, the bidder or offeror for the reward must be selected and then the preparation for price discussion in negotiation.

Our region has invested a significant amount of money and infrastructure into our transit software and hardware Automatic Vehicle Locators, scheduling, mapping software, etc. The BPPM is somewhat misleading in beginning the discussion of in-house cost estimates with a reference to "major procurements.

If competition turns out to be inadequate based on too few proposals received, you will have to perform a cost analysis. Marketing companies should really focus on generating as high a margin as possible.Quick Guide to Cost and Price Analysis for HUD Grantees and Funding Recipients There are two situations: The price can be established on the basis of catalog or market prices of commercial products or services sold in substantial quantities to the general public.

Cost principles describe the allowability of various types of costs (e.g. Recognize situations where price indexing is an appropriate method of price analysis. Given a data set, calculate a price estimate through price indexing.

Price Analysis in Various Situations

Recognize situations where Cost-Volume-Profit analysis is an appropriate method of price analysis. Price analysis is a price comparison of a proposed price without analyzing any of the separate cost of elements that it’s composed of. With any purchase some type of cost analysis is completed in order to receive the best price possible.

A “price analysis” will be the usual procedure followed in a competitive situation and in situations where items are being procured which are sold in the commercial marketplace to the general public. Section - "Cost and Price Analysis,” discusses various forms of price analysis techniques, including adequate price competition.

Ch 8 - Conducting Cost Realism Analyses Situations for Cost Realism Analysis (FAR (d)). When evaluating competitive offers for a: For fixed-price contracts, you must not adjust offered prices as a result of your analysis.

However, you may. A “price analysis” will be the usual procedure followed in a competitive situation and in situations where items are being procured which are sold in the commercial marketplace to the general public. Section - "Cost and Price Analysis,” discusses various forms of price analysis techniques, including adequate price competition.

Download
Price analysis in various situations
Rated 3/5 based on 79 review