Blog Tags - 15.404-1(b)(2)

The FAR does this a good amount, and it's actually something I'm considering writing an article about in the coming months. If you look at the definition of "Commercial Item," it starts with the easiest type of commercial item to establish - the one the regulation directs reviewers to accept without much pushback - which include tables, chairs, laptops, etc. and ends with "nondevelopmental items" that have not been sold in the open market but were created at private expense and sold to state and local governments, etc.  

15.404-1(b)(3) sets up the list of available price analysis techniques by order of preference, which means that the most preferred method of price analysis - e.g. highest ranked - applicable to the proposal should be used. A "best practice" price analysis documentation technique is to walk the reviewer through available price analysis techniques and stop at the highest ranked technique available to evaluate the proposed pricing. 

First things first - 15.404-1(b)(2) lists the seven (7) acceptable price analysis techniques for the evaluation of offeror proposals. The list is organized by order of preference, with the preferred technique (competition) listed first and the least reliable technique (other than cost and pricing days submitted by the offeror) listed last. When you dip below (b)(2)(i) or (ii), your price analysis narrative should succinctly explain why a higher analysis technique is not available. I'll provide some examples of how to do this down the road.