Brian Johnson

Thank you all for the input. The item is an electrical component that goes on an aging aircraft. I wish we could allow the marketplace to redevelop this item but due to data restrictions and the Special Programs Office (SPO) desire not to reverse engineer this we are left with one vendor. So I understand that the contractor has leverage and can offer whatever price they want. It is still my responsibility to determine the price fair and reasonable (i.e. maybe we pay a premium because of the risk, or because the contractor is going out of there way to supply the item, but the fact still rem

Thanks Patrick! I do work for a govt agency but your information aligns with much of what I have done and believe.

I am working a Firm Fixed Price buy for a sole source item that has been determined commercial of a type. Because of obsolescence the part has to be redesigned (last bought in the 90's). The redesign effort involves NRE costs that are beyond the actual production costs and the contractor is only providing hours and a burdened rate for each labor category to support this NRE. I have backed into the numbers the best I can but my counter offer is less than half of the proposed price for NRE. The NRE total is for $850,000. Without more data I am at a loss. The contractor keeps claiming becaus