How can an agency document software price reasonableness?

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Open questionLast verified: 2026-08-13
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  • #3483

    Commercial software prices can vary by users, usage, term, support, and negotiation. What evidence should the file include?

    #3484
    Accepted answer

    Normalize offers to the same quantities, term, service, implementation, and risk assumptions. Compare competition, market research, and historical prices with adjustments, published or comparable commercial terms, and the value of material differences. Explain why the selected evidence is relevant. FAR Part 12 requires price reasonableness and notes that commercial prices change with the performance period, warranty, liability, and requirements.

    #3533
    Community reply

    How do you normalize historical prices when the old contract used different user counts and support terms?

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