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Currency paper procurement: additional analysis would help determine whether a second supplier is needed: report to congressional requesters
United States. Government
Paperback. Books LLC, Reference Series 2011-10-02.
ISBN 9781234315108
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Förlagets beskrivning
Original publisher: [Washington, D.C.] : U.S. Government Accountability Office, [2005] OCLC Number: (OCoLC)60775919 Subject: Safety paper -- Costs. Excerpt: ... managed, responsible firm using reasonably efficient and economical methods of performance, plus a reasonable profit. To be fair to the seller, a price must be realistic in terms of the seller's ability to satisfy the terms and conditions of the contract. A reasonable price, according to the DOD guidance, is a price that a prudent and competent buyer would be willing to pay, given available data on market conditions, such as supply and demand, general economic conditions, and competition. For the currency paper contract, there is currently only one buyer and one seller, domestically. As a result, pricing is established through negotiation. The FAR further states that the contracting officer may use any of several analysis techniques to ensure that the final price is fair and reasonable. The techniques the officer uses depends on whether adequate price competition exists. For the 1999 contract, BEP determined that adequate price competition existed because of the expectation that at least one additional meaningful proposal would be submitted. Consequently, BEP used price analysis - a comparison of the two proposals - as a basis for determining that the 1999 contract prices, which totaled $ 207 million, were fair and reasonable. BEP also compared the proposed prices with an independent government cost estimate, which BEP prepared for the contract. For the 2003 contract, BEP determined that adequate price competition did not exist because, although several companies requested copies of the solicitation, only the current supplier submitted a proposal. Under such circumstances, the FAR requires agencies to use one or more of several proposal analysis techniques to ensure that the final price is fair and reasonable. BEP took the following steps to determine its prenegotiation pricing objective: * Obtaining c
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Currency paper procurement: additional analysis would help determine whether a second supplier is needed: report to congressional requesters
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