AN INSIDE LOOK AT HOW YOUR CUSTOMER SHOULD DETERMINE PRICING

DOD contracting officials have recently taken steps to ensure that the agency receives good pricing in sole source situations.  GAO would like other agencies to follow suit so that pricing determinations are more clearly supported by analysis and comparison.  Bill Woods, Director of Acquisition and Sourcing Management at GAO, recently discussed strides DOD has made in improving price reasonableness determinations on Federal News Radio.  Woods emphasized such things as looking at historical data, and thinks all agencies can improve their practices in this area. Taken together, Wood’s comments and insights tell contractors what their customer will, or should, be asking for and what GAO is recommending be sought in addition.  Most of the recommendations come down to improved acquisition research on the part of contracting officers and asking additional questions when it isn’t clear whether a buyer has access to all of the relevant information it needs to make a good pricing decision.  Woods’ comments are likely on target, but how many CO’s will take the time to conduct their own research – or engage industry in discussions – when the recent trend has been the exact opposite is unknown.