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KeepLearning

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  1. We are a subcontractor to a huge company like a Boeing. We're large ourselves, we have a CPSR approved system, and our subcontractors are large and small. We're talking about awarding to a subcontractor through and proving a fair and reasonable price before proceeding.
  2. Here's my question: If I go through the Proposal Analysis techniques in FAR 15.404-1(a)(2), (3), or (4) can I find the price to be fair and reasonable? (a)(1) says the objective of the proposal analysis is that the final price be fair and reasonable and then goes on to say that the techniques in 2-4 "may be used" to ensure the final price is fair and reasonable. So let's say we only have 1 bidder who is sole sourced and will not change their price (under 2M). You used a price analysis to create a negotiation position and a target, you're not within your target because they refuse to lower price. They gave other than certified data, you tried to negotiate again, and they still wouldn't lower price. This was taken to the next level manager (director) and they agreed to proceed since we needed the parts. We cannot send this elsewhere as it would cost more money and we'd have to wait 10 years to get cost savings (longer than the prime contract). Can this price be found to be fair and reasonable? This is the final agreed to price after negotiation using all techniques and FAR says we don't have to agree on all elements or even be within my original target. Second question, the Price Analysis/Cost Analysis/Cost Realism themselves don't find things to be fair and reasonable, they provide negotiation positions and the recording of a "fair and reasonable" price is within the Negotiation Memo, does that mean that result of the negotiation, aka the final agreed-to price, is what find something fair and reasonable? So, as long as you follow FAR 15.404-1(a)(1-4), exhaust your options, and negotiate, your price HAS to be fair and reasonable for that procurement given these set of circumstances? (My position is represented if you follow 15.404-1 then you're allowed to find it fair and reasonable. Compliance dept disagrees, says negotiation does not lead to a fair and reasonable price... help me learn!) Many thanks!
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