How do I write a "similar-to" price analysis report?

If you're writing a price analysis and trying to compare two items that are not identical, then you're writing what's often referred to as a "similar-to" price analysis. However, this is a bit of a misnomer since "similar-to" is not actually a recognized price analysis method. What you're actually doing is conducting a price analysis using one of the primary methods (Competition, History, Market Comparison, Published Price Lists, or Parametric Estimates) but then taking it one step further to account for similarities and differences.  

Therefore, the first step is to determine which method is most appropriate based on the data that you have available, just as you would with any price analysis.

What happens next depends on the method that you've chosen. Here's how SpendLogic handles "similar-to" reports within each method:

I. Competition (both "Low Price" and "Best Value")

Typically, all of the bidders in a competition will be providing quotes/proposals for the same item or service. However, there are cases in which one of the bidders differs slightly from the others. In this case, you will need to adjust for differences.

This is accomplished on the "Competition" tab in SpendLogic and, more specifically, the Bid Details screen. In that screen, below the Bid input, you will see a line labeled Bid Adjustment. The value entered here will be added (or subtracted) from the bid value entered above. You'll also be required to provide an explanation if anything is entered in this box.  A screenshot of where this happens is shown here:

II. Price Analysis Based on History

When you're using historical pricing as a basis for your price analysis, you're provided the opportunity to indicate similar-to details on the Complexity Adjustment step, which is near the bottom of the screen in the left-hand navigation. On this screen, you're asked whether the current procurement is identical or similar to the prior purchase. If you choose similar-to here, you will then be able to walk through the steps to explain any adjustments required to account for differences. A screenshot of what this looks like is shown here:

III. Market Comparables

When analyzing prices based on comparable items in the marketplace, you are asked to identify multiple items/services/sources to which you're comparing proposed pricing. Once you've entered a comparable item/service/source, you're provided with the prompt to identify whether the items are "identical" or "similar to" each other. Upon choosing "similar to," you will be guided through the process to identify and explain any differences and the potential price impacts. The screen on which this choice occurs is shown below:

IV. Published Price List

If you're basing pricing determinations on comparisons with published pricing, it's not uncommon that the item or service you're buying is unique in some way, but based upon an item or service that is sold to other customers. Just as with Historical, similar-to adjustments for published price lists occur on the Complexity Adjustment step in the left-hand navigation, as shown below:

V. Parametric Estimate

Using a "yardstick" or "parametric estimate" as your basis for price analysis will very often require an adjustment for similar-to. Just as with Historical, this is accomplished in the Complexity Adjustment step in the left-hand navigation, as shown below: