Price and Cost Analysis Reports
VERTEX was retained by an aerospace and defense contractor to perform cost and price analyses of supplier proposals for various Department of Defense programs. The Federal Acquisition Regulation (FAR) at subpart 15.4 dictates that the federal government must “purchase supplies and services from responsible sources at fair and reasonable prices.” In order to achieve “fair and reasonable” prices, FAR 15.4 requires prime contractors to obtain and analyze certified cost or pricing data from sole-source suppliers. To date, VERTEX personnel have prepared over 20 price and cost analysis reports on behalf of our client, including evaluations of all cost elements (e.g., direct labor, direct materials, subcontractor costs, indirect costs). These evaluations include analyses of labor rates, labor hours, materials, lower-tier subcontract proposals, indirect rate calculations, and profit. VERTEX has also performed price analyses to determine how the prices for the parts have trended over time. Our client uses VERTEX’s reports as bases to negotiate purchase orders with its suppliers at fair and reasonable prices. VERTEX’s work continues as our client submits proposals on additional programs.
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