June 04, 2013

Use Of Competitively Published Prices As The Basis Of Comparison For An Effective Price Analysis.

A couple of notes on this technique:  

When you're reviewing item prices, feel free to use prices published on vendor websites. If the item doesn't line up 1:1, be prepared to discuss how the items are substantially similar and how the differences between the items lead to price differentials. For example, if the item used as a basis for comparison has more functionality or enhanced performance capabilities than the item being purchased, the fact that the purchased item is offered at a lower price is not necessarily dispositive of fair and reasonable pricing.  

If you're using competitive prices for service comparisons, make sure the price list has effective dates. GSA Schedules are the most common examples of a valid competitive price list. The list also has to be available to potential customers upon request. A "customized' rate sheet developed for a particular effort is not a valid competitively published price list. 

I'll have additional notes on use of all noncompetitive price analysis techniques after we walk through each technique individually.