[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR7.302]

[Page 112-113]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 7_ACQUISITION PLANNING--Table of Contents
 
          Subpart 7.3_Contractor Versus Government Performance
 
Sec.  7.302  General.

    The Circular and the Supplement--
    (a) Prescribe the overall policies and detailed procedures required 
of all agencies in making cost comparisons between contractor and 
Government performance. In making cost comparisons, agencies shall--
    (1) Prepare an estimate of the cost of Government performance based 
on the same work statement and level of performance as apply to 
offerors; and
    (2) Compare the total cost of Government performance to the total 
cost of

[[Page 113]]

contracting with the potentially successful offeror.
    (b) Provide that solicitations and synopses of the solicitations 
issued to obtain offers for comparison purposes shall state that they 
will not result in a contract if Government performance is determined to 
be more advantageous (see the solicitation provisions at 52.207-1 and 
52.207-2);
    (c) Provide that each cost comparison shall be reviewed by an 
activity independent of the activity which prepared the cost analysis to 
ensure conformance with the instructions in the Supplement; and
    (d) Provide that, ordinarily, agencies should not incur the delay 
and expense of conducting cost comparison studies when the full-time 
equivalent Government employees involved are fewer than those specified 
by law, the Circular, and implementing agency guidance. Cost comparisons 
may be conducted in these instances if there is reason to believe that 
commercial prices are unreasonable.

[50 FR 35475, Aug. 30, 1985, as amended at 53 FR 17856, May 18, 1988; 55 
FR 25526, June 21, 1990; 57 FR 60575, Dec. 21, 1992]