Federal Contracting Answer Book, 3rd Edition

CHAPTER

9

COST ANALYSIS

Once the government receives proposals, it evaluates the individual costs that make up each offeror’s proposal.

Cost analysis gives the government a good picture of the contractor’s costs but does not provide an assessment of market value. For that assessment, the government must conduct price analysis (see Chapter 10). Thus, the government performs both cost and price analysis on each offeror’s proposal.

    How does the government define contract costs on a submitted proposal?

The government considers three main components ...