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Chapter 9 - Determining Fair and Reasonable Pricing

IT PROCUREMENT POLICY MANUAL: BUY IT Page 1 of 9 Chapter 09 - Determining fair and Reasonable Pricing - Chapter highlights Purpose: This Chapter covers the process for Determining a fair and Reasonable price related to information technology (IT) procurements. Key points: o All IT procurement professionals have a fiduciary responsibility to analyze the price or cost the Commonwealth pays for its IT goods and services. o A fair and Reasonable price is characterized by factoring industry and market Pricing with the expected value and quality of products, solutions and/or services to be received. fair and Reasonable does not necessarily mean the lowest offer.

Cost analysis should be performed in situations where price analysis does not yield a fair and reasonable price. The goal of cost analysis is to determine whether the supplier’s costs

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