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FAR 15.404-2 is the rule that says how to check if a price is fair by comparing it to other prices. It helps make sure the government pays the right amount.
FAR 15.404-2 explains when and how the government checks prices using cost or pricing data. It means if a deal is big and not based on strong competition, you may need to show proof of your costs. This helps the government know if your price is fair and honest. Think of it like showing your recipe before selling your cookies—it builds trust. This rule keeps pricing open and protects taxpayer money in federal contracts.
FAR 15.404-2 explains how the government checks cost and pricing data to be sure a contractor’s price is fair. If the contract is big or not competitive, the contractor may need to give certified cost details. This helps buyers avoid overpaying and make smart spending decisions. It's like checking a receipt before you pay, to be sure every cost is right and honest.
Many people make mistakes when using FAR 15.404-2 for cost realism analysis. A common error is skipping the review of labor rates or overhead costs, which can hide unrealistically low prices. Others assume costs are fair just because they look reasonable at first glance. Not asking for supporting data from the contractor is another big mistake. These slips can lead to underpriced offers that cause problems later. Taking time to check each cost helps ensure the government gets good value.
<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-contract-clauses">FAR 15.408 – Solicitation Provisions and Contract Clauses</a><br>