CLC 056 Exam Study Guide | 100 Questions with 100% Correct Answers | Verified | Latest Update 2024

Cost analysis is the review and evaluation of the separate cost elements and proposed profit/fee of an offeror's certified cost or pricing data or data other than certified cost or pricing data. It is important to evaluate the separate cost elements and proposed profit/fee to determine how the proposed costs represent the cost of the contract, assuming reasonable economy and efficiency. - Contracting Officers are required to purchase supplies and services from responsible sources at fair and reasonable prices. This requirement is based on the three elements that form the foundation of the government's pricing objective. Government Objective: purchase at fair and reasonable price price each contract separately exclude contingencies - In contracting, when you act as the government's buyer, your primary objective is to acquire supplies and services from responsible sources at fair and reasonable prices. The three approaches acknowledged by the government to attain this objective are: Price analysis Cost analysis Cost realism analysis