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FAR Part 15.404 is the rule that tells people how to figure out the right price when the government buys something big. It helps make sure prices are fair.
FAR 15.404 is a rule that helps the government decide if your price is fair before making a contract. It tells how to check prices using cost data, market info, or past deals. This helps buyers choose the best value and follow federal rules.
FAR 15.404 is about how the government decides if a price is fair before buying something. It helps make sure the deal is good for taxpayers. The rules tell buyers to look at costs, compare prices, and ask for proof when needed. If the price is too high or too low, they can ask questions or offer less. This protects both sides and keeps deals smart and fair.
When working with FAR 15.404, a common mistake is skipping the price reasonableness check—just assuming a low price means good value. Another error is ignoring cost realism, which can hide risks if a bid is too low to cover actual work. Some also fail to review past pricing data for similar buys. These mistakes can lead to bad deals, delays, or contract problems. Always double-check the math, compare to history, and ensure the price makes sense for the scope.
<a href="https://learn.cradle2contract.com/made-simple/far-15-403-cost-realism-analysis">FAR 15.403 – Cost Realism Analysis</a><br>
<a href="https://learn.cradle2contract.com/made-simple/far-15-405-price-negotiation">FAR 15.405 – Price Negotiation</a><br>
<a href="https://learn.cradle2contract.com/made-simple/far-15-406-documentation-requirements">FAR 15.406 – Documentation Requirements</a><br>
<a href="https://learn.cradle2contract.com/made-simple/far-15-407-special-cost-considerations">FAR 15.407 – Special Cost Considerations</a><br>
<a href="https://learn.cradle2contract.com/made-simple/far-15-408-configuration-management">FAR 15.408 – Configuration Management</a><br>