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FAR 15.404-3 is the rule that explains how the government checks prices to make sure they are fair when buying things. This helps save money and ensures good deals.
FAR 15.404-3 explains how the government checks a contractor’s cost data to make sure it’s right. This part helps buyers see if prices are based on facts and not guesses. If the deal is big or risky, they may ask for proof, like cost details, to double-check the offer makes sense.
FAR 15.404-3 is about making sure you're giving the right price information. It tells companies what cost or pricing details they must share so the government can check if the price is fair. If needed, the government might verify the numbers you give to avoid overpaying. This helps everyone work with trust and stay within budget.
When working with FAR 15.404-3, many make the mistake of skipping cost realism analysis for cost-type contracts. Others rely too much on a contractor’s numbers without double-checking. A common slip-up is using cost analysis when price analysis is enough—this wastes time and can confuse results. It's important to match the right method to the contract and review all backup data. Avoiding these errors helps ensure fair pricing and good value for the government.
<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-settlement-of-indirect-cost-rates">FAR 15.408 – Settlement of Indirect Cost Rates</a><br>