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FAR 15.404-1 is the rule that explains how to figure out a fair price when buying things for the government. It helps make sure no one pays too much.
FAR 15.404-1 explains how the government decides if your price is fair and reasonable. It’s like checking if a toy’s price is right before buying it. The Contracting Officer uses tools like price analysis or cost analysis to make sure the deal makes sense. This helps the government spend money wisely in federal contracts.
FAR 15.404-1 explains how the government checks if a contractor’s price is fair and makes sense. It gives tools and rules for figuring this out. This helps buyers pick the best deal for taxpayers. Think of it like shopping smart—comparing prices and quality before buying.
A common mistake with FAR 15.404-1 is not checking if the price makes sense for the work. Some buyers only look at the lowest bid and skip cost realism—so they miss signs the offer may be too low to be true. Others trust the contractor’s numbers without verifying the math. These errors can lead to bad deals or failed contracts. Always check if the price is fair, smart, and based on real work and past data.
<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-solicitation-provisions">FAR 15.408 – Solicitation Provisions</a><br>