
Price Analysis is the process of deciding if the asking price for a
product or service is fair and reasonable, without ...
Here are some basic techniques.
Price analysis. Use as many of the following techniques as
applicable and appropriate:
 C...
 Apply rough yardsticks (e.g., dollars per pound, per square foot,
per hour, etc.) to compare prices and highlight signif...
How do price analysis apply to the different
contracting methods?
 Small purchase
 Competitive proposals
 non-competiti...
 For routine, commercial type purchases, comparing price or
rate quotes obtained from an adequate number of qualified
ven...
 This method is most often used to contract for
professional, consulting, and architect/engineering.
 To determine the r...
 These are sometimes called sole source contracts and are
different from single bids. No competition is intended, and
usu...
Price analysis-Economics
Price analysis-Economics
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Price analysis-Economics

Price analysis- Economics...
Published on: Mar 4, 2016
Published in: Education      
Source: www.slideshare.net


Transcripts - Price analysis-Economics

  • 1.  Price Analysis is the process of deciding if the asking price for a product or service is fair and reasonable, without examining the specific cost and profit calculations the vendor used in arriving at the price.  It is basically a process of comparing the price with known indicators of reasonableness.  Examples of other forms of price analysis information include: • Analysis of previous prices paid • comparison of vendor’s price with the in-house estimate • comparison of quotations or published price lists from multiple vendors • comparisons with GSA prices
  • 2. Here are some basic techniques. Price analysis. Use as many of the following techniques as applicable and appropriate:  Compare competitive prices received in response to the solicitation to one another. This assumes you receive a large enough number of competitively priced offers from the current marketplace.  Compare proposed prices with prices under existing contracts and with prices proposed in the past for the same or similar items/services. Be sure to factor in any market changes (e.g., commodity price changes) or other influences (e.g., inflation).
  • 3.  Apply rough yardsticks (e.g., dollars per pound, per square foot, per hour, etc.) to compare prices and highlight significant inconsistencies that warrant additional pricing inquiry.  Compare competitive price lists, published catalog or market prices of commodities and products, similar indices and discount or rebate arrangements.  Compare proposed prices with your independent (i.e., in-house) cost estimates.
  • 4. How do price analysis apply to the different contracting methods?  Small purchase  Competitive proposals  non-competitive proposals
  • 5.  For routine, commercial type purchases, comparing price or rate quotes obtained from an adequate number of qualified vendors is sufficient price analysis.  If the small purchase is for professional or technical services, or the HA needs to evaluate other factors than price, then at least a limited cost analysis is appropriate.  In either case, the HA's analysis should include comparing the proposed prices to past prices it has paid for the same or similar items or services.
  • 6.  This method is most often used to contract for professional, consulting, and architect/engineering.  To determine the reasonableness of proposed costs, you must obtain cost breakdowns from the offerors showing all the elements of their proposed total costs and perform a cost analysis of each proposal using the appropriate set of cost principles.
  • 7.  These are sometimes called sole source contracts and are different from single bids. No competition is intended, and usually, there is no market to help set the price or estimated cost.  Since there is no price competition to tell you if the price or estimated cost is reasonable, you must obtain a breakdown of the proposed costs and perform a cost analysis.