Price analysis - ANSWER Examining and evaluating proposed total price and not the
separate cost elements and
profit
Cost analysis - ANSWER Review and evaluation of separate cost elements and
profit/fee
Cost realism analysis - ANSWER Evaluating estimated elements to determine if they:
o Are realistic for the work to be performed
o Reflect clear understanding of the requirement
o Are consistent with the approach outlined in the contractor's proposal
— Purpose: Determine the most probable cost
Cost realism - ANSWER shall be used for cost-reimbursement contracts and may be
used on competitive, fixed-price incentive, and other fixed-price contracts when
uncertainties are significant
Technical analysis - ANSWER Analyzing the need and reasonableness of the proposed
elements in the technical approach
o Minimum analysis is required for types and quantities of material as well as types,
quantities, and mix of labor hours
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separate cost elements and
profit
Cost analysis - ANSWER Review and evaluation of separate cost elements and
profit/fee
Cost realism analysis - ANSWER Evaluating estimated elements to determine if they:
o Are realistic for the work to be performed
o Reflect clear understanding of the requirement
o Are consistent with the approach outlined in the contractor's proposal
— Purpose: Determine the most probable cost
Cost realism - ANSWER shall be used for cost-reimbursement contracts and may be
used on competitive, fixed-price incentive, and other fixed-price contracts when
uncertainties are significant
Technical analysis - ANSWER Analyzing the need and reasonableness of the proposed
elements in the technical approach
o Minimum analysis is required for types and quantities of material as well as types,
quantities, and mix of labor hours
1
