Section 30-2326. PRICE AND COST ANALYSIS

 

2326.1The contracting officer shall be responsible for selecting and using whatever price analysis techniques will ensure a fair and reasonable price.

 

2326.2One (1) or more of the following techniques may be used to perform price analysis:

 

(a) Comparison of proposed prices received in response to the solicitation;

 

(b) Comparison of prior proposed prices and contract prices with current proposed prices for the same or similar items;

 

(c) Application of rough yardsticks (such as dollars per pound or per horsepower, or other units) to highlight significant inconsistencies that warrant additional pricing inquiry;

 

(d) Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements; and

 

(e) Comparison of proposed price-s with independent Agency cost estimates.

 

2326.3The contracting officer shall be required to perform a cost analysis in either of the following circumstances:

 

(a) The award of any contract in excess of one hundred thousand dollars ($100,000); or

 

(b) The modification of any contract when the modification exceeds one hundred thousand dollars ($100,000).

 

2326.4If cost analysis is required, the contracting officer shall perform cost analysis by using the techniques and procedures set forth in this section.

 

2326.5The contracting officer shall verify cost or pricing data and evaluate the cost elements, including the following:

 

(a) The necessity for and reasonableness of the proposed cost, including allowances for contingencies;

 

(b) A projection of the offeror's cost trends on the basis of current and historical cost or pricing data;

 

(c) A technical appraisal of the estimated labor, material, tooling and facilities requirements and of the reasonableness of scrap and spoilage factors; and

 

(d) The application of audited or negotiated indirect cost rates, labor rates, and other factors.

 

2326.6The contracting officer shall evaluate the effect of the offeror's current practices on future costs. In conducting this evaluation, the contracting officer shall ensure that the effects of inefficient or uneconomical past practices are not projected into the future.

 

2326.7The contracting officer shall compare the costs proposed by the offeror for individual cost elements with the following:

 

(a) Actual costs previously incurred by the same offeror;

 

(b) Previous cost estimates from the offeror or from other offerors for the same or similar items;

 

(c) Other cost estimates received in response to the Agency request;

 

(d) Independent Agency cost estimates; and

 

(e) Forecasts or planned expenditures.

 

2326.8The contracting officer shall verify that the offeror's cost submissions are in accordance with the contract cost principles and procedures set forth in Chapter 33 of Title 27, Contracts and Procurements (hereafter "Title 27 DCMR").

 

2326.9The contracting officer shall review each proposal to determine whether any cost or pricing data necessary to make the contractor's proposal accurate, complete, and current have been submitted or identified In writing by the contractor.

 

source

Final Rulemaking published at 36 DCR 6681, 6756 (September 22, 1989).