As referenced in Why can't I use historical pricing as my analysis methodology when I bought the same thing before? and I recently bought an item, and I am buying the same item now. Can I use historical pricing as my methodology? if there has been a significant time lapse between the last acquisition and the present one, the prior price may not be a valid basis for comparison.
SpendLogic's historical analysis methodology uses 12 months as the baseline for this time lapse. Some companies may use a different period of time.
However, there may be times when the difference in the Purchase Order issue dates exceeds the 12-month period but is still valid as a basis for comparison.
For example, let's assume you have a prior competition or cost analysis with a period of performance of three (3) years (2023 - 2025). You are placing an order in January 2025 and can use the older analysis because the current order being placed is within that time period of the previous review.
Another way to look at it is, you reviewed the 2025 price in 2022/2023 (whenever you performed the analysis) and determined the 2025 price to be fair and reasonable at the time the contract was placed. If the price on the current purchase order matches that in the multi-year contract, you have a valid basis for comparison even though more than 12 months have passed since the prior procurement.
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