Which three are basic principles of contract pricing that contracting officers must follow?
(1) Adequate price competition. (ii) The reasonableness of all prices awarded is clearly established on the basis of price analysis (see FAR 15.404-1(b)). (B) If only one offer is received in response to a competitive solicitation, see 215.371-3. (3) Commercial items.
How can we prevent price fixing?
Avoiding Price-Fixing or Price-Gouging Laws Avoid discussing future pricing (maximum or minimum) with competitors. Refrain from discussing with competitors any intention to charge emergency or other surcharges or eliminate discounts.
How is the price policy determined?
Most often the price is determined either based on what the competitors are charging or based on the costs and margins. Achieve the highest possible market share – the goal is to attract as many customers as possible at the expense of competing businesses.
Why price fixing is a major concern of government antitrust enforcement?
Generally, the antitrust laws require that each company establish prices and other terms on its own, without agreeing with a competitor. When competitors agree to restrict competition, the result is often higher prices. Accordingly, price fixing is a major concern of government antitrust enforcement.
How is price fair and reasonable determined?
When two or more acceptable offers are received and the lowest price is selected, the price of the lowest offerer can be concluded to be fair and reasonable. It is noted that generally where the difference in prices between the two offers differs by less than 15 percent, the price competition is said to exist.
Who can waive CAS applicability?
Under special circumstances, the head of the agency for the procuring contracting activity may waive applicability of CAS for a particular contract or subcontract if the conditions set out in FAR 30.201-5(b) are met.
How can we prevent anticompetitive behavior?
Staying compliant with competition law
- Avoid conversations on pricing, strategy, territory & customers.
- Look out for anti-competitive practices.
- Size doesn’t matter.
- Anti-competitive behaviour isn’t just price fixing.
- Put anti-competition law training in place.
- If you make a mistake, come clean.
What is price adaptation strategies?
Price adaptation is the ability of a business to change its pricing models to suit different geographic areas, consumer demands and prevailing incomes. The more adaptability a business has, the better chance it has of appealing to more consumers.
What are the consequences of price fixing?
Price fixing disrupts the normal laws of demand and supply. It gives monopolies an edge over competitors. It’s not in the best interest of consumers. They impose higher prices on customers, reduce incentives to innovate, and raise barriers to entry.
What are the characteristics of price fixing and its legal implications?
The defining characteristic of price fixing is any agreement regarding price, whether expressed or implied. The intent of price fixing may be to push the price of a product as high as possible, leading to profits for all sellers but may also have the goal to fix, peg, discount, or stabilize prices.
What is the exception process and how does it work?
The exception process is intended to be a generic method that applies to all IT/information security policies and standards. Enforcement procedures for non-compliance are defined in those policies and standards.
Are requests for exceptions automatically approved?
Requests for exceptions are reviewed for validity and are not automatically approved. Requests for exception that create significant risk to the university without compensating controls will not be approved. Requests for exception must be periodically reviewed to ensure that assumptions or business conditions have not changed.
Who can request an exception to an IT/Information Security Policy?
Individuals, technical support staff and managers responsible for implementing security policies and standards must use this process to request an exception. An exception to a published IT/information security policy, standard or practice may be granted in any of the following situations:
What is the exception process for superior solutions?
If a superior solution is available, an exception will be granted until the solution can be reviewed, and standards or procedures can be updated to allow for a better solution. The exception process is intended to be a generic method that applies to all IT/information security policies and standards.