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Federal Transit Administration
Financial Management Oversight Seminar 2005

Page 159 - FTA Circular 4220.1E

Price Analysis
A price analysis may be used, in lieu of cost analysis, in all other instances to determine the reasonableness of the proposed contract price.

Profit
Profit shall be negotiated as a separate element of price for each contract in which there is no price competition and in all cases where cost analysis is performed.

Federal Cost Principles
Costs or prices based on costs shall be based on Federal cost principles

Cost Plus a Percentage of Cost
Cost plus a percentage of cost contracts shall not be used.


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2005 - Federal Transit Administration