Cost Analysis
Grantee must perform a cost or price analysis in connection with every procurement action including contract modification.
...as a starting point, grantees must make independent estimates before receiving bids or proposals.
A cost analysis shall be performed when...
Unless...
- The offeror is required to submit the elements of the estimated cost under professional consulting and A&E contracts.
- Adequate price competition is lacking.
- Sole source procurement is used.
Price reasonableness can be established on the basis of a catalog or market price of a commercial product sold in substantial quantities to the general public or on the basis of prices set by law or regulation
2005 - Federal Transit Administration