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Hugo Corporation –Maximize price competition

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Hugo Corporation –Maximize price competition
You are concerned about the clarity of the purchase description in light of the lack of
competition on the current purchase. As a buyer, what can you do?
Competition is very important in a contracting decision. For the following reasons competition is
needed to be promoted:
Competition can be regarded as the best way or channel to motivate firms so that they offer
products with highest quality and reasonable prices.
Prices acquired from the competition are best bases to use in evaluating the reasonableness of
an offered price.
Offerors may submit cost or pricing data based on adequate price competition,
To maximize price competition the buyer must do the following activities:
Try to attract competitive and attractive offers from the best suppliers and suppliers can be
judged based on quality of their product, punctuality, their track records for pricing and
integrity.
Try to obtain reasonably-priced offers, in part because the solicitation reflects both the
government’s actual minimum need and Prospective contract provisions balance the cost risk
associated with satisfying that need.
You are also concerned that the Government did not obtain the greatest possible discount on
sales over 1000 total units. As a buyer, what can you do?
Failure to obtain the greatest possible discount on sales over 1000 total units can be attributed to the
lack of competition. Government needs are required to be described to promote competition.
Need description objectives:It is required that agencies describe Government needs in a manner
designed to:
Government needs to special kinds of supplies or services and to promote full and open
competition, with due regard to the nature of the supplies or services to be acquired.

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Again, restrictive provisioning can be burden for the contract and unnecessary provisioning
can make the contract unattractive. So, the restrictive provisions or conditions to the extent
necessary to satisfy the minimum needs of the agency or as authorized by law.
Leonards Linen- Comparing prices
Do you concur in the contracting officers (buyer’s) decision?
It cannot be straightforwardly said that the proposed price is reasonable because Leonard Linen
is the only contractor to submit an offer.The fact that a price is included in a catalog does not, in
and of itself, make it fair and reasonable.
Again, they only submitted a price list for hospital linen laundry services and refused to provide
any information on prices paid by commercial customers or any standard discount offered to
other customers. But, contacting officer can be correct if he can manage a price list of Leonard
Linen’s recent purchaser.
What other actions might the contracting officer have taken in determining price
reasonableness?
The contracting officer might have taken following actions to determine price reasonableness.
The objective of proposal analysis is to ensure that the final agreed-to price is fair and reasonable.
(1) It is the duty of contracting officer to evaluate thereasonableness of the offered prices. He can use
analytical techniques and procedures singly or in combination with other to ensure that the final price
is fair and reasonable.
(2) Price analysis shall be used when cost or pricing data are not required.
(3) Cost analysis shall be used to evaluate the reasonableness of individual cost elements when cost
or pricing data are required. Price analysis should be used to verify that the overall price offered is
fair and reasonable.
(4) Cost analysis may also be used to evaluate information other than cost or pricing data to
determine cost reasonableness or cost realism.

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Hugo Corporation -Maximize price competition 1. You are concerned about the clarity of the purchase description in light of the lack of competition on the current purchase. As a buyer, what can you do? Competition is very important in a contracting decision. For the following reasons competition is needed to be promoted: Competition can be regarded as the best way or channel to motivate firms so that they offer products with highest quality and reasonable prices. Prices acquired from the competition are best bases to use in evaluating the reasonableness of an offered price. Offerors may submit cost or pricing data based on adequate price competition, To maximize price competition the buyer must do the following activities: Try to attract competitive and attractive offers from the best suppliers and suppliers can be judged based on quality of their product, punctuality, their track records for pricing and integrity. Try to obtain reasonably-priced offers, in part because the solicitation reflects both the government's actual minimum need and Prospective contract provisions balance the cost risk associated with satisfying that need. 2. You are also concerned that the Government did not obtain the greatest possible discount on sales over 1000 total units. As a buyer, what can you do? Failure to obtain the greatest possible discount on sales over 1000 total units can be attributed to the lack of competition. Government needs are required to be described to promote competition. ...
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