|TITLE: PRICE ANALYSIS||POLICY NO: P-292|
|SUBMITTED BY: R. BRADLEY & A. JACKSON|
|APPROVED BY: D. SABEL|
|Effective Date: 05/07 Supersedes No: 11/93 Page No 1 of 1|
The purpose of this policy is to provide a policy for price analysis.
Each Procurement Professional is responsible for using prudent judgment in the placing of any purchase order. On single source orders equal to or greater than $10,000 or when only one bid is received on a competitive quotation equal to or greater than $10,000, a price analysis should be prepared and affixed to the shopping cart.
Each Procurement Professional is to use any one or a combination of the following methods in the process of examining and evaluating price.
A. Analysis of previous price paid such as through prior competitive quotations or review of Commodity item code list to find previous Purchase Order, price, vendor code and vendor name.
B. Comparison to contract prices for same or similar items.
C. Use of yardsticks or parametric relationships to point up gross differences. Examples: Foot cost of a building, daily cost of a hospital room, and cost of washing a single window or any other unit that can be compared with some familiar unit that has been purchased previously.
D. Comparison of prices to published lists with market prices of commodities together with discount or rebate schedules.
E. Comparison of proposed prices with independent estimates of costs of prices developed within Procurement Services.
F. Require suppliers (where a quote is required) to furnish commercial/educational price lists to support offered pricing, with statement on quotation form:
"Bidder shall furnish with quotation a copy of the most current price list including items requested. Quotations not including such price lists must be rejected and will not be considered for this procurement."
In those procurements where price analysis is necessary but the methods for examining and evaluating price previously described are not applicable and the anticipated procurement price is in excess of $100,000 and the source of funding is federal funds, a "Certificate of Current Cost and Pricing Data" will be obtained. A sample "Certificate of Current Cost and Pricing Data" is shown on the following page.
Documentation to evidence that a process of examining and evaluating price has occurred will be made a part of the procurement file.