RCUH Policies and Procedures
DETERMINATION OF COST OR PRICE REASONABLENESS
Purpose: Federal regulations require documentation of cost analysis or price analysis for procurement actions. The Determination of Cost or Price Reasonableness form is used to document the analysis showing that the offered price is fair and reasonable. The form is kept as part of the procurement file to demonstrate that the procurement process was conducted in an open and fair manner, and that RCUH received the most advantageous price.
1. Complete all sections. See Sample Price and Cost Analyses.
2. Provide a detailed discussion of your price analysis or cost analysis. A Determination of Cost or Price Reasonableness form that lacks sufficient detail cannot be approved.
3. Sign and date the form.
An improperly completed and/or unsigned form will be returned to the sender.
Name of Designated University Official or Fiscal Administrator
From: Name of Principal Investigator, Department Head, or Administrator Telephone Number:
Subject: Determination of Cost or Price Reasonableness
Good or Service to be Acquired:
Amount (attach written quotation): Purchase Order Number:
I. This expenditure is being made under the following condition(s):
☐ Sole source (Policy 2.106)
☐ Emergency procurement (Policy 2.108) where only one (1) quote is received
☐ Request for Quotations (where discretion is used to select the vendors invited to submit quotes and the solicitation is not publicly posted) where less than three (3) quotes are received (Policy 2.103)
☐ Request for Quotations or Invitations for Bid (where the solicitation is publicly posted) where only one (1) quote/bid is received (Policy 2.103 and 2.105)
☐ Request for Quotations or Invitations for Bid where the lowest quote is NOT selected
☐ Request for Proposals (Policy 2.104)
☐ Price adjustment to Purchase Order No. or Contract No.
☐ Exempt procurement (Policy 2.107), UH Exemption No.
☐ Professional services procurement (Policy 2.210)
☐ Extension of an existing contract past its initial term (Policy 2.205)
Reason that uninterrupted service is beneficial:
☐ Other condition (specify):
II. Cost or price offered or fee negotiated is considered fair and reasonable for the following reason(s) and if applicable, is supported by attached documentation and/or a detailed discussion of the cost or price analysis:
☐ Comparison of previous RCUH purchase order and contract prices with current proposed price, for the same or similar goods or services. Both the validity of the comparison and the reasonableness of the previous price(s) have been established (include the referenced RCUH purchase orders/contracts, amounts, issuance dates, and how they are similar to the current purchase).
☐ Comparison with Vendor’s published price lists, market prices, pricing indexes, and discount or rebate arrangements. Attach published price list or other published pricing information used (a vendor’s quotation or correspondence does not qualify as a published price list).
☐ Comparison of proposed price to an independent (in-house) estimate that describes the cost of the components (e.g., labor, materials). Attach documentation of the data used to prepare the estimate.
☐ Comparison of proposed price with prices obtained through market research for the same or similar goods or services. Attach documentation of research conducted.
☐ The order is priced in accordance with existing RCUH Purchase Order No. and/or RCUH Contract No. which was competitively established.
☐ Other reason (specify):
I certify that the information provided above is true and correct to the best of my knowledge.
Full Name of Principal Investigator, Department Head, or Administrator
Full Name of DUO / Fiscal Administrator
Requests for non‑competitive purchases utilizing federal contract funds in excess of $750,000 must also be accompanied by cost or pricing data and a certification (refer to Policy 2.303 Certification Statements Required for Federal Purchases).