May 2009
Beginner to intermediate
272 pages
8h 44m
English
Content preview from Guide to Contract Pricing, 5th EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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CHAPTER 3
Price Analysis
Price analysis is defined in FAR 15.404-1(b)(1) as the “process of examining and evaluating a proposed price without evaluating its separate cost elements and proposed profit.”
As discussed at the beginning of the Chapter 1, we all do price analysis in our daily lives for our own private purposes. Rarely, do we have anything other than a general idea of the cost and profit built into anything we buy. When we buy a house, the largest single purchase most of us ever make, it never occurs to us even to attempt to learn the cost of the materials and labor that went into the house. Even if it did, how many of us would also remember that the builder has more costs than simply the labor and material in the house? The builder ...
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.