Price Analysis on Commercial Items Purchases Within the Department of Defense

Abstract

Recent reviews by the Department of Defense, Office of the Inspector General (DoDIG, 2001 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 memorandums and the proper use of price analysis and the use of pricing memorandums to improve acquisition pricing payoffs. This research presents an analysis of contract files from U.S. DoD 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 the results of a survey, with the same purpose, of contract specialists, contracting officers, and other personnel, such as price analysts. The data collected from the personnel survey was used to make comparisons with the data from the analysis of the contract files. This will then contrast contracting personnel perception of their ability to complete price reasonableness determinations and the actual documentation contained within the contract files. The authors also identified key areas of weakness in the price reasonableness determination documents and offer recommendations which could potentially reduce the price of commercial goods and services.

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Document Details

Document Type
Technical Report
Publication Date
Apr 30, 2014
Accession Number
ADA624425

Entities

People

  • Janie Maddox
  • Ralucca Gera

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Biomedical
  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Contracts
  • Cost Analysis
  • Cost Estimates
  • Department Of Defense
  • Governments
  • Management Personnel
  • Market Research
  • Military Acquisition
  • National Governments
  • Procurement
  • Public Policy
  • Regulations
  • Specialists
  • Students
  • Training
  • United States Government

Readers

  • Defense Financial Management and Audit.
  • Industrial Economics
  • Systems Analysis and Design