§ 20-19Assurance of reasonable price.
§ 20-20Petty cash and micro purchases.
§ 20-21Small purchases.
§ 20-22Sealed bids.
§ 20-23Competitive proposals.
§ 20-24Contract modifications.
The WHA shall require assurance that, before entering into a contract, the price is reasonable, in accordance with the following instructions.
No formal cost or price analysis is required. Rather, the execution of a contract by the contracting officer (through a purchase order or other means) shall serve as the contracting officer's determination that the price obtained is reasonable, which may be based on the contracting officer's prior experience or other factors.
A comparison with other offers shall generally be sufficient determination of the reasonableness of price, and no further analysis is required. If a reasonable number of quotes is not obtained to establish reasonableness through price competition, the contracting officer shall document price reasonableness through other means, such as prior purchases of this nature, catalog prices, the contracting officer's personal knowledge at the time of purchase, comparison to the ICE, or any other reasonable basis.
The presence of adequate competition should generally be sufficient to establish price reasonableness. Where sufficient bids are not received, and when the bid received is substantially more than the ICE, and where the WHA cannot reasonably determine price reasonableness, the WHA must conduct a cost analysis, consistent with federal guidelines, to ensure that the price paid is reasonable.
The presence of adequate competition should generally be sufficient to establish price reasonableness. Where sufficient bids are not received, the WHA must compare the price with the ICE. For competitive proposals where prices cannot be easily compared among offerors, where there is not adequate competition, or where the price is substantially greater than the ICE, the WHA must conduct a cost analysis, consistent with federal guidelines, to ensure that the price paid is reasonable.
A cost analysis, consistent with federal guidelines, shall be conducted for all contract modifications for projects that were procured through sealed bids, competitive proposals, or noncompetitive proposals, or for projects originally procured through small-purchase procedures and the amount of the contract modification will result in a total contract price in excess of $100,000.
