# Presentation: 42WT5TIGX3LW2L5AJCKO4SOSGJ6TITUW

## COMMERCIAL “SOLE SOURCE” PROPOSAL ANALYSIS ROADMAP

- 1.  Is information available within the Government?

**Step 1 – Information within the Government**

**If Yes – go to 1a**

**If No – go to 2**

- 1a. Is information adequate to determine price reasonableness?

**If Yes – go to 1b**

**If No – go to 2**

**1b. Complete Price Analysis and commence negotiations**

**Step 2– Information from Other Sources**

- 2. Is information available from sources other than the offeror?

- TECHNIQUES TO CONSIDER:
- Market Research Using Search Engines
- Published Market Prices
- Published Price Lists From Both the Offeror and Other Vendors
- Information Requested From Other Vendors
- Any Other Records – that are maintained and verifiable

- 2a. Can the Contracting Officer make a determination of price reasonableness based upon this information?

**If Yes – go to 1b**

**If No – go to 3**

- SOURCES TO CONSIDER:
- Prices From Government Contracts
- Government Independent Cost Estimates
- Parametric Estimates and Cost Estimating Models
- Government Value Analysis
- Government Cost Benefit Analysis
- Government Special Studies
- Reports such as Cost Schedule or Cost Performance Reports
- Historical Data from Other Government Services or Agencies
- Records within DCMA and DCAA

## COMMERCIAL “SOLE SOURCE” PROPOSAL ANALYSIS ROADMAP

**Step 3 – Obtain Information from the Offeror**

- 3. Once you have exhausted all avenues of obtaining information from within the Government or from outside sources, obtain information from the Offeror.
- Rule:  Only obtain the type and level of data that is adequate to determine price reasonableness.

- Will the offeror provide prices at which the same or similar items have previously been sold, i.e., “Sales Data”?

**If Yes – go to 3a**

- 3b. Complete Price Analysis and commence negotiations

- 3a. Can the Contracting Officer make a determination of price reasonableness based upon this information?

- At a Minimum, the Contractor must submit appropriate information on prices at which the same or similar items have previously been sold in the commercial marketplace (FAR Clause 52.215-20).
- Such information is typically referred to as “Sales Data”.  Comparative prices must be considered in the context of the overall business arrangement e.g., discounts obtained, quantities, delivery rates and terms of purchase, support services or financing.

**3c. Request minimal additional data necessary to determine price reasonableness.  Go to 3d**

**If Yes – go to 3b**

- If No – go to 3c

**If Yes – go to 3b**

- If No – go to 3c

- 3d. Is the additional information provided adequate to determine price reasonableness?

**Note: In the event the offeror will not provide adequate data – elevate to higher authority until resolved**

- _For Catalog Items:_
- A copy of or identification of the catalog and its date, or the appropriate pages for the items, or a statement that the catalog is on file in the buying office to which the proposal is being submitted
- Provide a copy or describe current discount policies and price lists
- Explain the basis of each offered price and its relationship to the established catalog price, including how the proposed price relates to the price of recent sales in quantities similar to the proposed quantities
- _For Market Priced Items:_
- The source and date or period of the market quotation or other basis for the market price, the base amount and applicable discounts
- Describe the nature of the market
- _For Items included on an active federal supply service multiple award schedule contract:_
- Proof that an exception has been granted for the schedule item
- _For acquisitions of modifications to existing weapons systems_, there may be no real comparable price sales data available.  In those cases, cost information from the offeror that does not meet the definition of Cost or Pricing Data at FAR 2.101 might be appropriate for determining price reasonableness.  Examples include: Subcontract Prices, Bills of Material, Vendor Quotes, Data by Major Labor Categories, Labor Hours, Wrap Rates, Rates and Factors, Actuals to Date and Estimates to Complete, etc.

- If No – go to 3c