Sign In
  • Question

    Are "Most Probable Cost" for cost proposal required for a proposal under a BAA?


    Answer

    "...provide valuable insight into the offeror’s understanding of the project, perception of risks, and ability to organize and perform the work" (FAR 35.008(e)) and "cost realism" (FAR 35.106(e)) are inextricably linked. We know this because FAR 15.305(a)(1) states that cost realism analysis is used "...to determine what the Government should realistically expect to pay for the proposed effort, the offeror's understanding of the work (emphasis added), and the offeror's ability to perform the contract." FAR 35.008(e) further states "Cost realism...shall also be considered to the extent appropriate" (emphasis added), so the contracting officer has some degree of discretion regarding performance of a complete cost realism/most probable cost analysis. To answer your question more directly, FAR 35.016(e) requires that the contracting officer "consider" a cost realism analysis, based on his/her business judgement and any agency/local policy requirements.

    Open full Question Details
Chat with DAU Assistant
Bot Image