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  • Question

    Is a contractor allowed to write up guidance to contradict all FAR, DFAR Regulations? How am I supposed to determine that this is fair and reasonable if the contractor will not break down its quote? Please contact me for further details.


    Answer

    The following response is based solely on the question and background information provided. As we do not have all of the facts particular to your contract, program, and situation, we highly recommend, as applicable, you consult your leadership, contracting officer and/or Legal Office for guidance.
     
    FAR  15.402 establishes pricing policy for Government transactions and directs contracting officers to "purchase supplies and services from responsible sources at fair and reasonable prices."  Therefore, it is incumbent on the Contracting Officer to ensure appropriate pricing for goods and services regardless of the vendor's level of cooperation and/or willingness to provide cost or pricing data. 
     
    Given your circumstances you are logically attempting to get a breakout of labor cost and travel cost for contracted repair services. With that information you can then determine whether the pricing is fair and reasonable based on price analysis.  If the vendor refuses to provide the data requested, you are left with at least three possible approaches: (1) cancel the procurement action and pursue another source from which you can secure the appropriate level of information to determine a fair and reasonable price; (2) determine whether the price is reasonable based on information available to you from other sources  or; (3) determine whether the vendor can provide information other than what you have already requested that will allow you to determine the price fair and reasonable.  DFARS PGI 215.403 provides detailed guidance on the requirements and methods for conducting price analysis given any one of the three choices above.
     
    It is important to note that commercial vendors do not typically provide detailed cost date for their commercial products.  In this case, perhaps standard industry practice is to price commercial repair services as a flat rate inclusive of travel.  If the vendor is willing to share their commercial catalog pricing with you, then you may have a basis for determining fair and reasonable pricing.  Additionally, maybe you can simplify your request by, for example, asking the vendor rep to disclose the location and conveyance from and by which the technician is traveling.  By determining a reasonable travel cost based on this information you can then determine the proposed labor cost which will provide a comparative basis for determining whether your repair service price is fair and reasonable. 
     

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