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  • Question

    Is the contracting officer required to make two pricing determinations? 1) The award price is a fair market price IAW FAR 19.806(b), and 2) the award price is determined fair and reasonable IAW FAR 15.404-1(b)(2)?


    Answer

    Joy:  This is just a duplicate of the answer you got earlier.  I apologize for any confusion.  Dan

    FAR 19.202-6(b), Determination of Fair Market Price, states, "for 8(a) contracts, both with respect to meeting the requirement at 19.806(b) and in order to accurately estimate the current fair market price, contracting officers shall follow the procedures at FAR 19.807"

     
    FAR 19.807 states, the contracting officer shall estimate the fair market price of the work.  In estimating the fair market price the contracting officer shall use cost or price analysis and consider commercial prices for similar products and services,, available in-house cost estimates, data, submitted by SBA or 8(a) contractor, and data obtained from any other Government agency. 
     
    Therefore, the fair market price is estimated prior to award in determining whether or not to do the 8(a) contract.  In awarding the contract, the contract price is negotiated to be fair and reasonable utilizing FAR 15.404-1 price analysis techniques which lead to the determination of a fair and reasonable price or fair market price.  Basically, the fair and reasonable price has the same meaning as fair market price.

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