Current Construction Cost Data Federal Procurement Requirement
The quality of construction cost information directly affects the Government’s ability to obtain fair and reasonable prices and protect taxpayer funds.
Does your cost data source provide the current, relevant, verifiable, and sufficiently detailed market information necessary to support a fair and reasonable price?
That is the standard federal agencies should demand.
Federal procurement policy requires contracting officers to obtain the information necessary to establish price reasonableness and support the determination of a fair and reasonable price.
Repair, renovation, maintenance, and new construction are geographically dependent markets. Labor availability, material pricing, subcontractor conditions, productivity, logistics, prevailing wages, and market competition can vary substantially from one location to another.
Using outdated or generalized “market average” cost data combined with location factors may create a false sense of precision and potentially affect budgets, Independent Government Estimates (IGEs), negotiated prices, task-order awards, contract modifications, and ultimately millions of dollars in taxpayer expenditures.
The question is not simply whether cost data is available.
The question is whether the data is current, relevant, verifiable, and sufficiently detailed to support the procurement decision.
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