XL EaglePrice Reasonableness
Price Reasonableness. Price reasonableness is the check that a price is fair and not too high. Every federal award needs a finding that the price is fair and reasonable.
Contracting officers compare offers to each other, past prices, published prices, market research and the government estimate. With good competition, the competitive price is often enough to show reasonableness.
Why it matters to a small contractor
If you are the only bidder, expect questions about your price. Have quotes, invoices or a cost breakdown ready to back it up.
Example
Only one bid comes in for a remote site cleanup at $95,000. The contracting officer asks for supplier quotes and labor rates before deciding the price is reasonable.
Price Reasonableness: common questions
What happens if my price is found unreasonable?
The government can reject it, negotiate it down, or cancel and resolicit.
Does reasonable mean cheapest?
No. It means fair compared with the market and the work required.
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