CHAPTER 13
Determining Price Reasonableness
(FAR 8.4, 12.209, 13.106-3, 13.202, 14.408-2, 15.4, and 15.305)
The government requires contractors to be paid fair and reasonable prices. There is no set definition for the term “fair and reasonable,” and obtaining a fair and reasonable price depends on many factors. Also, the process of determining price reasonableness is sometimes not adequately documented or supported, so the basis for a determination of price reasonableness may not be apparent. In one audit, the Government Accountability Office (GAO) found that the price reasonableness determinations for 25 out of 49 contract actions were not properly documented or supported. GAO also found that some agencies had added work to existing contracts ...
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