How do I justify Price Reasonableness?

The following are examples of how to substantiate Price Reasonableness, together with a discount (discount alone is not justifiable), in order of preference:

  1. Price competition - comparison of quotes
  2. UCOP, State, or GSA contract pricing, or comparison with prices under these existing contracts
  3. Prior price history with the same vendor, same items (include the Gateway PO number and $ amount paid)
  4. Comparison with current, or recent prices for a similar item(s) with another vendor
  5. Market research, and/or catalog or established price list (sales to the general public - screen shot ok)

Our ONR (Office of Naval Research) Lead Auditor said the following in order to proove the statement you write on the Form A:

"Just make sure you can back up what they write with listings, price histories, or other data. Back up is the key. An auditor should not have to question anything."

Unit or Topic: 

Procurement Services