Price Analysis on Commercial Item Purchases Within the Department of Defense

Abstract

Recent reviews by the Department of Defense Office of the Inspector General between 2001 and 2011 concluded that new pricing skill sets have not always been present in the purchase of commercial items. The current research focuses on (1) collecting and interpreting price analysis data and (2) using that data to determine the appropriateness of current pricing memoranda and the proper use of price analysis and pricing memoranda to improve acquisition pricing payoffs. This research includes contract file reviews from Department of Defense installations to determine whether the price reasonableness determination was completed and documented in accordance with procedures outlined in the Federal Acquisition Regulation (FAR). The research also includes a survey, with the same purpose, of contract specialists, contracting officers, price analysts, and other personnel. The data collected from the personnel survey is used to make comparisons with the data collected during the contract file reviews. These comparisons explain the gap between contracting personnel s perception of their ability to complete price reasonableness determinations and the actual documentation contained within the contract files. The authors also identify key areas of weakness in the price reasonableness determination documents and offer recommendations that could potentially reduce the price of commercial goods and services. Finally, the authors make suggestions for future research.

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Document Details

Document Type
Technical Report
Publication Date
Oct 02, 2013
Accession Number
ADA613019

Entities

People

  • Janie Maddox
  • Ralucca Gera

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Applied Mathematics
  • Commerce
  • Contract Administration
  • Contractors
  • Contracts
  • Cost Analysis
  • Cost Estimates
  • Department Of Defense
  • Governments
  • Law
  • Management Personnel
  • National Governments
  • Procurement
  • Public Policy
  • Students
  • United States Government

Readers

  • Defense Acquisition Program Management
  • Defense Financial Management and Audit.
  • Logistics and Supply Chain Management.