Common use of FACTOR 4 – PRICE Clause in Contracts

FACTOR 4 – PRICE. The Government will not rate or score price, but will evaluate each Offeror’s price proposal for reasonableness and completeness. The Government will use the following focus areas to support the price evaluation: Reasonableness - The Government will evaluate the reasonableness of the proposed price using one or more of the proposal analysis techniques defined in FAR 15.404. In evaluating reasonableness, the Government will determine if the Offeror’s proposed price does not exceed those which would be incurred by a prudent company in the conduct of competitive business. Completeness – The Offeror’s price proposal will be considered complete if all required fields within Attachment 3 Price Spreadsheet are filled out. Failure to provide complete pricing may result in a proposal being deemed incomplete and ineligible for award. NOTE 1: The Offeror’s proposed total price shall be used for evaluation purposes only. If awarded an IDIQ contract, the Project Manager III Labor Rate for the Base and Option Ordering Periods shall serve as the ceiling rate for any FFP task orders that contain a requirement for a Project Manager III. NOTE 2: There is no requirement for a Project Manager at the IDIQ level.

FACTOR 4 – PRICE. The Government will not rate or score price, but will evaluate each Offeror’s price proposal for reasonableness and completeness. The Government will use the following focus areas to support the price evaluation: Reasonableness - The Government will evaluate the reasonableness of the proposed price using one or more of the proposal analysis techniques defined in FAR 15.404. In evaluating reasonableness, the Government will determine if the Offeror’s proposed price does not exceed those which would be incurred by a prudent company in the conduct of competitive business. Completeness – The Offeror’s price proposal will be considered complete if all required fields within Attachment 3 Price Spreadsheet are filled out. Failure to provide complete pricing may result in a proposal being deemed incomplete and ineligible for award. NOTE 1: The Offeror’s proposed total price shall be used for evaluation purposes only. If awarded an IDIQ contract, the Project Manager III Labor Rate for the Base and Option Ordering Periods shall serve as the ceiling rate price for any FFP task orders that contain a requirement for a Project Manager III. NOTE 2: There is no requirement for a Project Manager at the IDIQ level.