Armed Services Pricing Manual (ASPM). Volume 2: Price Analysis

Abstract

Price analysis is one of two ways for determining whether a seller's proposed price is acceptable. Cost analysis is the other, Both are part of the contract pricing function discussed and explained in the first volume of this Manual Nine of that volume's 10 chapters, as well as the coverage of contract pricing in the Federal Acquisition Regulation (FAR) and the Dot) FAR Supplement (OVA RSI, focus on costs and cost analysis. They do so despite the fact that cost analysis is used mostly in the relatively small number of noncompetitive procurements and contract modifications expected to exceed $100,000, while price analysis should be used in all procurements, competitive and noncompetitive, regardless of dollar value. This emphasis on cost analysis is probably the natural consequence of the number of dollars involved in large defense contracts. How can price analysis be used to price a nuclear-powered warship, a fixed-wing aircraft, a tank, or an airborne radar? Who would dare use price analysis on such high-risk buys, and how could you do it? We answer these questions in this second volume of the Armed Services Pricing Manual (ASPM) and show how you can use price analysis effectively in buying more commonplace products and services. This kind of buying is not, glamorous, but, it is essential and demanding and it usually takes something other than cost analysis to reach a fair and reasonable price. This volume is the first major Department of Defense effort to focus on how to i :, price analysis, and it is the first major effort to list and describe sources of pricing information. For the most part, this volume addresses price analysis as it, can and should be done, even though not all organizations are set up in such a manner that their contract specialists will be able to operate in the ways described.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1987
Accession Number
ADA550737

Entities

Organizations

  • Assistant Secretary of Defense for Acquisition

Tags

Communities of Interest

  • Biomedical
  • Cyber
  • Energy and Power Technologies
  • Ground and Sea Platforms
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Business Administration
  • Commerce
  • Contract Administration
  • Contractors
  • Contracts
  • Cost Analysis
  • Economic Analysis
  • Employment
  • Engineers
  • Geographic Regions
  • Industrial Engineering
  • Investments
  • Management Personnel
  • Manufacturing
  • Organizational Structure
  • Petroleum
  • Procurement

Readers

  • Computer Science.
  • Government Contracting/Procurement.