Is price reasonableness really unreasonable?

Washington Technology Article

With so many IT and professional services contracts being awarded to the lowest priced offeror, you have to wonder if the government is worried about awarding contracts to firms whose prices are unreasonably low.

As it turns out, in many procurements the government does not look for unreasonably low prices, and in some instances, is prohibited from doing so. In these procurements, low price has no floor.

The rules for examining price reasonableness and cost realism are complex and generally not well understood by capture and proposal professionals, so I thought I would point out some of the more interesting aspects of these rules about how low you can go…

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This article was originally published December 15, 2014 in