Required Information to Evaluate Price Reasonableness for Commercial Services

An interim rule amends the FAR to provide that purchases of commercial services that are not offered and sold commercially in substantial quantities in the commercial marketplace may only be considered commercial items if the contracting officer determines in writing that there is enough information to evaluate the reasonableness of the price of the services. The rule says such services must be “of a type” offered and sold competitively in substantial quantities in the commercial marketplace.

To evaluate reasonableness of the prices, the CO may request the offeror to submit prices paid for the same or similar commercial items under comparable terms and conditions by both government and commercial customers. If needed, the CO may request “other relevant information regarding the basis for price or cost, including information on labor costs, material costs and overhead rates” (Fed. Reg. 52852).

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