Price analysis in government contracts is both a creative and analytical process. And the process perspective is never more true than in service-subcontractor analysis.
When acquiring services that aren’t directly solicited, prime contractors and agencies often face unique challenges in knowing if a subcontract provider is proposing a price that’s reasonable.
Subcontracts can sometimes represent a major portion of the total dollars spent under a prime contract. So agency Contracting Officers (COs) have to ensure the fairness of prime contract prices by evaluating the prices of the prime’s critical subawards—and so does the prime.
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