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  • Question

    Given the sheer quantity of line items and the time it would take to conduct cost realism on all line items, is it acceptable to conduct the cost realism using a sampling methodology, and extrapolate from there? Are you aware of anyone doing this in the past?


    Answer

     
    I am not aware of anyone doing this in the past, however, this does not mean it has not been done in the past, I just did not see it in any of the GAO reports I read.  If in your solicitation you said you were going to do stratified sampling of the cost clins and then random sample X cost clins and perform cost realism analysis on those X clins and came up with a decrement that you applied to the whole stratum, I think you would be okay. But the method you are going to use to do your cost realism needs to be in the solicitation. I could not find anywhere in the FAR where it said you could not take this approach.


    I recommend you seek legal’s opinion on this approach.

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