Basic Pricing Policies and Concepts

Basic Pricing Policies and Concepts - Concepts...

Info icon This preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style  6/5/11 Basic Pricing Policies and  Concepts Adina B. Peyton
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
 6/5/11 The government policy is to contract for its  products and services at fair and reasonable  prices Matter of judgment Many factors used to determine what is “fair and  reasonable” Government price analysts encounter restraints  not faced by private individuals Government’s Pricing Policy
Image of page 2
 6/5/11 Full and open competition, when referring to a  contract action, means that all responsible  sources are allowed an opportunity to compete FAR also encourages the use of commercial and  non-developmental items to encourage maximum  competition Promoting Full and Open  Competition 
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
 6/5/11 The Government is the only buyer High volume purchases The Government pays its Debts Prompt payment of bills Most Favored Customer Treatment Pricing Advantages in  Government Contracting
Image of page 4
 6/5/11 Under some conditions (covered in a later  chapter), the government may receive cost and  pricing data from offerors prior to selecting them  for contract award This information gives the government detailed  information on how the contractor arrived at their  proposed price Cost and Pricing Data
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
 6/5/11 FAR talks about “fair and reasonable” but does not  define it Means different things to different people Government prefers market based pricing over  cost-based pricing Cost based pricing is only appropriate when the  forces of the marketplace cannot judge fair and  reasonable price What is a Fair and Reasonable  Price?
Image of page 6
 6/5/11 Competitive Offers Established catalog prices Established Market Price Established by Law or Regulation Five Ways to Establish a Fair  and Reasonable Price
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
 6/5/11 Prices arrived at through this means are: In response to solicitations encouraging competitive  offers Prepared with no effort by the buyer to suppress a known  source Submitted by multiple responsible offerors who can  satisfy the buyer’s requirements with priced offers  responsive to the solicitation’s expressed requirements Submitted by independent offerors Competitive Offers
Image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern