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Tool Name: AI-Powered FAR Navigator Tool by CLEATUS AI
Purpose: To simplify and accelerate the process of understanding the Federal Acquisition Regulation (FAR) for government contractors.
Key Features:
- Provides AI-generated, plain-English summaries for all FAR clauses.
- Highlights relationships and dependencies between different FAR sections and clauses.
- Offers a searchable, browsable, and interactive interface for the entire FAR document.
- Includes a free-to-use search and navigation tool.
Target Audience: Small-to-mid-sized government contractors, proposal writers, and compliance officers who need to quickly understand FAR requirements.
Primary Benefit: Reduces the time and effort required to interpret complex legal and regulatory language, improving efficiency and compliance.

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19.807 - Estimating fair market price | FAR Navigator

19.807

Estimating fair market price

Contracting officers must use thorough cost and price analysis, including recent comparable awards and commercial data, to ensure fair market pricing for 8(a) contracts.

Overview

FAR 19.807 outlines the procedures contracting officers must follow to estimate the fair market price for work to be performed by an 8(a) contractor under the Small Business Administration (SBA) 8(a) Program. The section ensures that the government pays a reasonable price while supporting small disadvantaged businesses. It details the sources and methods for estimating fair market price, including cost or price analysis, commercial price comparisons, in-house estimates, and data from the SBA, the 8(a) contractor, or other government agencies. For repeat purchases, it emphasizes using recent award prices for comparable work, with adjustments for any differences in requirements or market conditions.

Key Rules

Requirement to Estimate Fair Market Price
- Contracting officers must estimate the fair market price for 8(a) contracts.
Methods for Estimating Price (Non-Repeat Purchases)
- Use cost or price analysis, commercial prices, in-house estimates, and data from the SBA, the 8(a) contractor, or other agencies.
Methods for Repeat Purchases
- Consider recent award prices for comparable work, adjusting for differences in specifications, quantities, terms, and market changes. Use price indices and commercial price comparisons as needed.

Responsibilities

Contracting Officers: Must conduct thorough price estimation using specified sources and methods, and document the rationale for the estimated fair market price.
Contractors: Should provide accurate cost or pricing data when requested.
Agencies: Ensure oversight and compliance with fair market price estimation procedures for 8(a) acquisitions.

Practical Implications

This section ensures fair and reasonable pricing for 8(a) contracts, protecting government interests while supporting small businesses.
Accurate estimation prevents overpayment and supports program integrity.
Common pitfalls include failing to adjust for differences in repeat purchases or neglecting to use all available data sources.

8(a) Contracts

Contracting Officer Actions

Repeat Purchases

Small Business Set-Asides

Document the rationale and sources used for the fair market price estimate.

Estimate fair market price for all 8(a) acquisitions.

For repeat purchases, review recent award prices for comparable work and adjust for differences.

Obtain and evaluate in-house estimates and data from SBA, 8(a) contractor, or other agencies.

Use cost or price analysis and consider commercial prices for non-repeat purchases.

Use price indices and commercial price comparisons as appropriate.

References done in this section

19.8Contracting with the Small Business Administration (The 8(a) Program)

19.807

Estimating fair market price

Contracting officers must use thorough cost and price analysis, including recent comparable awards and commercial data, to ensure fair market pricing for 8(a) contracts.

Overview

Key Rules

Requirement to Estimate Fair Market Price
- Contracting officers must estimate the fair market price for 8(a) contracts.
Methods for Estimating Price (Non-Repeat Purchases)
- Use cost or price analysis, commercial prices, in-house estimates, and data from the SBA, the 8(a) contractor, or other agencies.
Methods for Repeat Purchases
- Consider recent award prices for comparable work, adjusting for differences in specifications, quantities, terms, and market changes. Use price indices and commercial price comparisons as needed.

Responsibilities

Contracting Officers: Must conduct thorough price estimation using specified sources and methods, and document the rationale for the estimated fair market price.
Contractors: Should provide accurate cost or pricing data when requested.
Agencies: Ensure oversight and compliance with fair market price estimation procedures for 8(a) acquisitions.

Practical Implications

This section ensures fair and reasonable pricing for 8(a) contracts, protecting government interests while supporting small businesses.
Accurate estimation prevents overpayment and supports program integrity.
Common pitfalls include failing to adjust for differences in repeat purchases or neglecting to use all available data sources.

8(a) Contracts

Contracting Officer Actions

Repeat Purchases

Small Business Set-Asides

Document the rationale and sources used for the fair market price estimate.

Estimate fair market price for all 8(a) acquisitions.

For repeat purchases, review recent award prices for comparable work and adjust for differences.

Obtain and evaluate in-house estimates and data from SBA, 8(a) contractor, or other agencies.

Use cost or price analysis and consider commercial prices for non-repeat purchases.

Use price indices and commercial price comparisons as appropriate.

References done in this section

19.8Contracting with the Small Business Administration (The 8(a) Program)

19.807

Estimating fair market price

Contracting officers must use thorough cost and price analysis, including recent comparable awards and commercial data, to ensure fair market pricing for 8(a) contracts.

Overview

Key Rules

Requirement to Estimate Fair Market Price
- Contracting officers must estimate the fair market price for 8(a) contracts.
Methods for Estimating Price (Non-Repeat Purchases)
- Use cost or price analysis, commercial prices, in-house estimates, and data from the SBA, the 8(a) contractor, or other agencies.
Methods for Repeat Purchases
- Consider recent award prices for comparable work, adjusting for differences in specifications, quantities, terms, and market changes. Use price indices and commercial price comparisons as needed.

Responsibilities

Contracting Officers: Must conduct thorough price estimation using specified sources and methods, and document the rationale for the estimated fair market price.
Contractors: Should provide accurate cost or pricing data when requested.
Agencies: Ensure oversight and compliance with fair market price estimation procedures for 8(a) acquisitions.

Practical Implications

This section ensures fair and reasonable pricing for 8(a) contracts, protecting government interests while supporting small businesses.
Accurate estimation prevents overpayment and supports program integrity.
Common pitfalls include failing to adjust for differences in repeat purchases or neglecting to use all available data sources.

19.807

Estimating fair market price

Contracting officers must use thorough cost and price analysis, including recent comparable awards and commercial data, to ensure fair market pricing for 8(a) contracts.

Overview

Key Rules

Requirement to Estimate Fair Market Price
- Contracting officers must estimate the fair market price for 8(a) contracts.
Methods for Estimating Price (Non-Repeat Purchases)
- Use cost or price analysis, commercial prices, in-house estimates, and data from the SBA, the 8(a) contractor, or other agencies.
Methods for Repeat Purchases
- Consider recent award prices for comparable work, adjusting for differences in specifications, quantities, terms, and market changes. Use price indices and commercial price comparisons as needed.

Responsibilities

Contracting Officers: Must conduct thorough price estimation using specified sources and methods, and document the rationale for the estimated fair market price.
Contractors: Should provide accurate cost or pricing data when requested.
Agencies: Ensure oversight and compliance with fair market price estimation procedures for 8(a) acquisitions.

Practical Implications

This section ensures fair and reasonable pricing for 8(a) contracts, protecting government interests while supporting small businesses.
Accurate estimation prevents overpayment and supports program integrity.
Common pitfalls include failing to adjust for differences in repeat purchases or neglecting to use all available data sources.

19.807

Estimating fair market price

Contracting officers must use thorough cost and price analysis, including recent comparable awards and commercial data, to ensure fair market pricing for 8(a) contracts.

Overview

Key Rules

Requirement to Estimate Fair Market Price
- Contracting officers must estimate the fair market price for 8(a) contracts.
Methods for Estimating Price (Non-Repeat Purchases)
- Use cost or price analysis, commercial prices, in-house estimates, and data from the SBA, the 8(a) contractor, or other agencies.
Methods for Repeat Purchases
- Consider recent award prices for comparable work, adjusting for differences in specifications, quantities, terms, and market changes. Use price indices and commercial price comparisons as needed.

Responsibilities

Contracting Officers: Must conduct thorough price estimation using specified sources and methods, and document the rationale for the estimated fair market price.
Contractors: Should provide accurate cost or pricing data when requested.
Agencies: Ensure oversight and compliance with fair market price estimation procedures for 8(a) acquisitions.

Practical Implications

This section ensures fair and reasonable pricing for 8(a) contracts, protecting government interests while supporting small businesses.
Accurate estimation prevents overpayment and supports program integrity.
Common pitfalls include failing to adjust for differences in repeat purchases or neglecting to use all available data sources.

19.807

Estimating fair market price

Contracting officers must use thorough cost and price analysis, including recent comparable awards and commercial data, to ensure fair market pricing for 8(a) contracts.

Overview

Key Rules

Requirement to Estimate Fair Market Price
- Contracting officers must estimate the fair market price for 8(a) contracts.
Methods for Estimating Price (Non-Repeat Purchases)
- Use cost or price analysis, commercial prices, in-house estimates, and data from the SBA, the 8(a) contractor, or other agencies.
Methods for Repeat Purchases
- Consider recent award prices for comparable work, adjusting for differences in specifications, quantities, terms, and market changes. Use price indices and commercial price comparisons as needed.

Responsibilities

Contracting Officers: Must conduct thorough price estimation using specified sources and methods, and document the rationale for the estimated fair market price.
Contractors: Should provide accurate cost or pricing data when requested.
Agencies: Ensure oversight and compliance with fair market price estimation procedures for 8(a) acquisitions.

Practical Implications

This section ensures fair and reasonable pricing for 8(a) contracts, protecting government interests while supporting small businesses.
Accurate estimation prevents overpayment and supports program integrity.
Common pitfalls include failing to adjust for differences in repeat purchases or neglecting to use all available data sources.

Features

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Compliance

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