Problem: The Price Analysis Historical has the option to choose OTHER but then requires the prior price to be supported by cost analysis or competition.
Pursuant to FAR 15.404-1(b)(2)(ii), a comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items is an acceptable price analysis technique provided, the prior price is a valid basis for comparison.
If there has been a significant time lapse between the last acquisition and the present one, if the terms and conditions of the acquisition are significantly different, or if the reasonableness of the prior price is uncertain, then the prior price may not be a valid basis for comparison.
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