dependent on the facts surrounding the particular procurement situation; however, the Center will come to an independent estimate prior to receiving bids or proposals 2 CFR § 200.323(a). The or will be documented in cost analysis price analysis, as appropriate for the particular situation, the procurement files. Accordingly, the Center performs a in connection with every cost or price analysis ederal procurement action in excess of $150,000, including contract modifications, as follows: Cost Analysis Non-competitive Contracts: A analysis involves a review of proposed cost costs by expense category, and the ederal cost principles apply, which includes an analysis of whether the costs are allowable, allocable, reasonable, and necessary to carry out the contracted services. In general, A analysis must be used for all including sole source cost non-competitive contracts, contracts. The ederal cost principles apply. All must also be awarded and paid on a non-competitive contracts and not on a fixed-price basis. basis, In a cost-reimbursement contract, the contractor is reimbursed for reasonable actual costs incurred to carry out the contract. Profit must be negotiated as a separate element of the price in all cases where there is no competition. When performing a analysis, the program director, with assistance from the negotiates cost profit as a separate element of the To establish a fair and reasonable profit, consideration is given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work 2 CFR § 200.323(b). Analysis Competitive Contracts: A analysis determines if the lump sum price price is fair and reasonable based on current market value for comparable products or services. In general, A price analysis can only be used with contracts and is usually used with competitive fixed-price contracts. It cannot be used with non-competitive contracts. Compliance with the ederal cost principles is not required for fixed-price contracts, but total costs must be reasonable in comparison to current market value for comparable products or services.
dependent on the facts surrounding the particular procurement situation; however, the Center will come to an independent estimate prior to receiving bids or proposals 2 CFR § 200.323(a). The cost analysis or price analysis, as appropriate for the particular situation, will be documented in the procurement files. Accordingly, the Center performs a cost or price analysis in connection with every ederal procurement action in excess of $150,000, including contract modifications, as follows: Cost Analysis Non-competitive Contracts: A cost analysis involves a review of proposed costs by expense category, and the ederal cost principles apply, which includes an analysis of whether the costs are allowable, allocable, reasonable, and necessary to carry out the contracted services. In general, A cost analysis must be used for all non-competitive contracts, including sole source contracts. The ederal cost principles apply. All non-competitive contracts must also be awarded and paid on a basis, and not on a fixed-price basis. In a cost-reimbursement contract, the contractor is reimbursed for reasonable actual costs incurred to carry out the contract. Profit must be negotiated as a separate element of the price in all cases where there is no competition. When performing a cost analysis, the program director, with assistance from the negotiates profit as a separate element of the To establish a fair and reasonable profit, consideration is given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work 2 CFR § 200.323(b). Analysis Competitive Contracts: A price analysis determines if the lump sum price is fair and reasonable based on current market value for comparable products or services. In general, A price analysis can only be used with competitive contracts and is usually used with fixed-price contracts. It cannot be used with non-competitive contracts. Compliance with the ederal cost principles is not required for fixed-price contracts, but total costs must be reasonable in comparison to current market value for comparable products or services.
ROESC%20-%20Section%20III%20Procurement%20System%20-%20Federal%20Grant%20Policies%20and%20Procedures%20Manual.docx