[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR7.302]



[Page 117]

 

            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 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]