【正文】 his rates for that period, and explain how the rates were derived. Without that, the analyst should request certified financial information from the pany which can be used to do rate approximations. Profit/Fee Analysis Profit/Fee should bear a close relationship to the technical, management, and cost risk of the work and the degree to which the supplier is willing to assume that risk. Generally, higher cost estimates (padding of cost, either in quantity or rates) evidence an unwillingness by the supplier to assume risk. In addition to considering risk and the relative difficulty of the job, the contracting professional should consider the size of the job, the period of performance, the amount of investment being made by the supplier in performing the work, the amount of assistance (projectprovided property and financing) being provided by the project, and the amount of subcontracting involved. Differences, Price and Cost Analysis Factor Price Cost ? WHEN CONDUCTED BEFORE AWARD SAME ? DETAIL/COMPLEXITY LIMITED MEDIUM TO VERY ? TIME REQUIRED MINUTESHOURS HOURSWEEKS ? COST TO CONDUCT MINIMAL SIGNIFICANT ? PERSONNEL NEEDED BUYER TEAM ? SKILLS REQUIRED BASIC ALGEBRA ALGEBRA ACCT ? WHEN CONDUCTED ALWAYS AS NECESSARY ? INFORMATION NEEDED BIDS COST PROPOSAL ? PROFIT ALSO ANALYZED NO YES Summary/Conclusions The conclusion that a price is fair and reasonable must be based on some form of price and/or cost analysis. How detailed this analysis will be depends on the dollar value and the nature of the product or service being purchased. Summary/Conclusions Some form of price analysis is required for every purchase. Although this is true, price analysis takes on special importance when employed by itself. Price analysis is generally used without cost analysis for low dollar purchases。s cost trends, on the basis of current and historical cost or pricing data. 3. A technical appraisal of the estimated labor, material, tooling and facilities requirements and of the reasonableness of scrap and spoilage factors. 4. The application of audited or negotiated indirect cost rates, labor rates, or other factors. Supplier Cost Elements Compared With 1. Actual costs previously incurred by the same contractor or offeror。s proposed costs. This assumes the supplier presented a work plan to acplish the proposed efforts in its technical proposal. ? The relationship of the proposed costs to the required work. In this assessment, the technical/management team will determine whether all costs proposed are necessary for the satisfactory pletion of the work. Proposed costs for work determined to be unnecessary should be excluded. Technical Evaluation of the Supplier’ s Technical Proposal ? The degree to which the proposed effort is duplicated. A given cost proposal may contain costs which have been proposed elsewhere in the same proposal or in prior proposals for work that was pleted prior to the instant contract. ? The validity of the estimating techniques employed in the proposal. If historical data is used in projecting future cost, the team should determ