[Code of Federal Regulations]

[Title 13, Volume 1]

[Revised as of January 1, 2006]

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

[CITE: 13CFR124.511]



[Page 400-401]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 124_8(a) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS STATUS 

DETERMINATIONS--Table of Contents

 

                   Subpart A_8(a) Business Development

 

Sec. 124.511  How is fair market price determined for an 8(a) contract?



    (a) The procuring activity determines what constitutes a ``fair 

market price'' for an 8(a) contract.

    (1) The procuring activity must derive the estimate of a current 

fair market price for a new requirement, or a requirement that does not 

have a satisfactory procurement history, from a price or cost analysis. 

This analysis may take into account prevailing market conditions, 

commercial prices for similar products or services, or data obtained 

from any other agency. The analysis must also consider any cost or 

pricing data that is timely submitted by SBA.



[[Page 401]]



    (2) The procuring activity must base the estimate of a current fair 

market price for a requirement that has a satisfactory procurement 

history on recent award prices adjusted to ensure comparability. 

Adjustments will take into account differences in quantities, 

performance, times, plans, specifications, transportation costs, 

packaging and packing costs, labor and material costs, overhead costs, 

and any other additional costs which may be appropriate.

    (b) Upon the request of SBA, a procuring activity will provide to 

SBA a written statement detailing the method it has used to estimate the 

current fair market price for the 8(a) requirement. This statement must 

be submitted within 10 working days of SBA's request. The procuring 

activity must identify the information, studies, analyses, and other 

data it used in making its estimate.

    (c) The procuring activity's estimate of fair market price and any 

supporting data may not be disclosed by SBA to any Participant or 

potential contractor.

    (d) The concern selected to perform an 8(a) contract may request SBA 

to protest the procuring activity's estimate of current fair market 

price to the Secretary of the Department or head of the agency in 

accordance with Sec. 124.505.