16.4 How to determine price reasonableness

The agency should conduct careful research when conducting a sole source procurement to determine the fair market price of the IT good or service being procured and document the findings. To substantiate price reasonableness, review previous prices paid by other consumers and observe whether the market has remained stable or fluctuated for that particular IT or telecommunications good or service. Complete a Price Reasonableness Determination Form (see Appendix B) for the procurement file. Also see Chapter 9 - Determining Fair and Reasonable Pricing of this manual, Determining Price Reasonableness.