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FAR 15.407-3 explains how the government checks prices when buying things to make sure they are fair and reasonable. It helps keep costs low and ensures good value.
FAR 15.407-3 explains what to do when a contractor says their costs went up because of government actions. It's a rule that helps fix cost problems caused by the government. The goal is to make sure both sides are treated fairly when changes affect pricing. This helps new professionals in government contracts understand when and how to solve pricing issues that aren’t the contractor’s fault.
FAR 15.407-3 explains how the government deals with "unrealistic pricing" in contract offers. If a price seems too low to be real, the government may ask questions or say no. This helps make sure contractors can really do the work at the price they say. It protects the government from risks and poor performance.
A common mistake with FAR 15.407-3 is ignoring signs of an unbalanced proposal—when prices seem too high or too low for certain items. Some forget to review whether line-item costs make sense compared to past buys. Others fail to document their concerns, which is required for a proper analysis. These errors can lead to bad contract choices or lost funding. Always review pricing carefully and write down why you think it may be risky. That keeps your decisions clear and accountable.
<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-15-404-profit-analysis">FAR 15.404 – Profit 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-15-408-evaluation-of-technical-proposals">FAR 15.408 – Evaluation of Technical Proposals</a>