10.1 Fair and Reasonable Price Determination
Before executing a contract or contract modification, the Director must make a final determination that prices to be paid by the County are fair and reasonable. In making this determination, the Director should consider the Using Department’s price analysis and, if obtained, cost or pricing data.
The Director has authority to require that contract cost or pricing principles be followed by Using Departments. In addition, the Director may require a price analysis by Using Departments, particularly in the certification of fair and reasonable prices as required by these regulations.
10.1.1 Price Analysis
Before making a recommendation for award, a Using Department must make a price analysis to determine that the prices are fair and reasonable. In making the price analysis, a Using Department should consider one or more of the following factors:
10.1.1.1 Prior award price for the goods or services being procured;
10.1.1.2 Prices contained in other offers responding to that solicitation;
10.1.1.3 Costs estimated for the procurement prior to the receipt of offers;
10.1.1.4 Commercial market prices and other commercial practices relating to costs;
10.1.1.5 Prices paid by other public entities for similar goods or services; or
10.1.1.6 Cost analysis which separates components of the offer and allocates costs among those components.
10.1.2 The Director may issue additional factors to the Using Departments for use in making a price analysis.
10.2 Requirements for Certified Cost or Pricing Data
10.2.1 An offeror or contractor must submit cost or pricing data, or both, in a form prescribed by the Director prior to approval of:
10.2.1.1 A competitively negotiated contract valued at more than $100,000;
10.2.1.2 A non-competitively negotiated contract valued at more than $50,000;
10.2.1.3 Any contract modification for which the price adjustment is expected to exceed $50,000 except contract modifications that are fully in accordance with the terms and conditions of the contract; or
10.2.1.4 Any other contract or contract modification, as may be required by the CAO or Director.
10.2.2 When Cost or Pricing Data is required:
10.2.2.1 Each contractor or offeror must at the request of the Director submit, in a form required by the Director, a certificate showing the data for the proposed work to be done, including work to be done by a subcontractor. The offeror or contractor must submit a certification that the data submitted are accurate, complete and current.
10.2.2.2 The contract or contract modification document must state that the price to the County, including profit or fee, may be adjusted by the Director to exclude from the price any sums determined by the Director to be allocable to inaccurate, incomplete or outdated cost or pricing data.
10.2.3 When a prime contractor is authorized to expend appropriated funds through subcontractors in the performance of a County contract, Subsections 10.2.1 and 10.2.2 are also applicable to subcontracts and subcontract modifications.
10.2.4 Before executing a contract or contract modification, the Director must make a determination as to the reasonableness of the cost or pricing data. The contract cost principles and procedures in the Federal Acquisition Regulations may be used as general guidelines when developing price determinations, if they are not at variance with County laws and regulations.
10.2.5 The requirements of section 10.2 do not apply to a contract or contract modification that is based on:
10.2.5.1 Adequate competition as determined by the Director;
10.2.5.2 Established catalog or market prices of commercial items sold in substantial quantities to the general public;
10.2.5.3 Prices set by laws or regulations;
10.2.5.4 A noncompetitive contract awarded under a resolution or appropriation approved by the County Council, if the Using Department has made the certification required by Section 17.3.2.; or
10.2.5.5 The Contractor has been specifically identified in a grant accepted by the County.
10.2.6 In exceptional cases, or for contracts or contract modifications with public entities, the Director may waive the requirement for cost or pricing data by making a written determination that explains why the waiver is in the best interest of the County.