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A Fair and Resonable Price and Government Contracts

In: Business and Management

Submitted By arberdine
Words 878
Pages 4
A Fair and Reasonable Price
And
Government Contracts

Amy Berdine-Roberts
Cost and Price Analysis
Professor Rafi
January 10, 2008

When you first think about fair and reasonable price, you think about the goods that you buy or the services that you use. When shopping for anything, you do not want to feel buyer’s remorse because you are unhappy with the product or service so research is the key. You would shop around to ensure that you are not paying too much. You compare prices and look at the quality and quantity that you will receive. When looking at specific brands and agencies, you see what others say about their product or service. Without this type of research, you could not only pay too much but you may receive sub par services. Especially with contracts you want to make sure the work the contractor does is not only quality work but will also be completed on time and will not cost more than the original agreed upon price.

When it comes to government, they also need to shop around and receive fair and reasonable prices for the products they buy and the services they receive. However, it goes beyond that. They not only need to ensure they are getting a fair and reasonable price, but are also using the correct type of contract for the service that is being done. There are numerous types of government contracts; fixed-price, cost reimbursement, incentive, indefinite delivery, time and materials, labor hour and letter contracts.

Fixed price contracts are just as they sound. The prices are firm or fixed and cannot be adjusted normally. However, in some cases there are some adjustable rates but they had to follow specific guidelines and have an absolute price that they cannot go above. While this seems like the best way to go, it is also one that needs to be researched and a cost analysis needs to be performed to ensure that the price that is…...

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