Even for a Fixed Price Contract, Valid Price Realism Analysis Requires Logical Reasoning
November 15, 2016
The Federal Acquisition Regulation (FAR) generally does not require a price realism analysis in the context of a fixed price contract. Instead, the agency is merely required to determine that the offered price is fair and reasonable (i.e. not too high). However, if the government exercises its discretion to conduct a price realism analysis (to evaluate whether the proposed prices are too low),…