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:
- Price competition - comparison of quotes
- UCOP, State, or GSA contract pricing, or comparison with prices under these existing contracts
- Prior price history with the same vendor, same items (include the Gateway PO number and $ amount paid)
- Comparison with current, or recent prices for a similar item(s) with another vendor
- 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."