4 22,560 1999 3.0% 96 No Distant 31,370 217.85 5 24,000 1999 3.0% 120 Yes Local 23,731 164.80 6 29,400 1999 3.0% 120 Some Distant 29,434 204.40 Avg 26,135 27,547 195.50 Volleyball, Basketball, Softball; Play 3,4,5 days/week; 8-10 teams/league. Games adjusted to 144 Leverage = 20% discount for Yes; 10% for some; 0% for none Source = no adjustment for local; 10% premium for distant The average per game, $195.50, is a reasonable starting point for negotiations or for a government estimate. It should be judgmentally adjusted if the current buy is not typical of the six listed. For example, if officials must be brought in from a distant city for the current buy, extra weight may be given to the market prices for locations that are also distant. Still, this analysis is a good starting point and will provide useful information about the market. 6.4.2.2.5 useful, market pricing has some pitfalls. Prices on the Internet or prices made available by direct contact are often not discounted i.e. they are prices”. Actual sales “sticker prices may be much lower. Also, while the prices may appear to be for the same item, they may be based on different terms or conditions. The item may be priced including rapid delivery in small quantities while the need is for larger quantities delivered lead-time away. There may be technical differences that are not apparent. Obtaining advice from technical sources, including DCMA personnel located at the plant or in the area, can help to make market analysis more useful. 6.4.2.2.6 Documenting the results of the market analysis is important. As a minimum, printouts from Internet queries, records of phone calls and other information must be filed. This will become a part of the Price Negotiation Memorandum. 6.4.3 Catalog Pricing 6.4.3.1 Catalog pricing is using sales of the same or
4 22,560 1999 3.0% 96 No Distant 31,370 217.85 5 24,000 1999 3.0% 120 Yes Local 23,731 164.80 6 29,400 1999 3.0% 120 Some Distant 29,434 204.40 Avg 26,135 27,547 195.50 Volleyball, Basketball, Softball; Play 3,4,5 days/week; 8-10 teams/league. Games adjusted to 144 Leverage = 20% discount for Yes; 10% for some; 0% for none Source = no adjustment for local; 10% premium for distant The average per game, $195.50, is a reasonable starting point for negotiations or for a government estimate. It should be judgmentally adjusted if the current buy is not typical of the six listed. For example, if officials must be brought in from a distant city for the current buy, extra weight may be given to the market prices for locations that are also distant. Still, this analysis is a good starting point and will provide useful information about the market. 6.4.2.2.5 useful, market pricing has some pitfalls. Prices on the Internet or prices made available by direct contact are often not discounted i.e. they are “sticker prices”. Actual sales prices may be much lower. Also, while the prices may appear to be for the same item, they may be based on different terms or conditions. The item may be priced including rapid delivery in small quantities while the need is for larger quantities delivered lead-time away. There may be technical differences that are not apparent. Obtaining advice from technical sources, including DCMA personnel located at the plant or in the area, can help to make market analysis more useful. 6.4.2.2.6 Documenting the results of the market analysis is important. As a minimum, printouts from Internet queries, records of phone calls and other information must be filed. This will become a part of the Price Negotiation Memorandum. 6.4.3 Catalog Pricing 6.4.3.1 Catalog pricing is using sales of the same or
afmc_comm_guide_mar05.docx