The fact that a price is included in a catalog does not, in and of itself, make the price fair and reasonable.

• A. True
• B. False
• C. Only for commercial items
• D. Only if catalog is government published

Answer: (B)

Catalog prices by themselves do not prove fairness. In price analysis, the government must verify reasonableness by looking beyond the mere presence of a price in a catalog. A catalog price can be a useful reference point or baseline, but it may reflect list price, outdated pricing, or undiscounted terms. To determine a fair and reasonable price, you compare the proposed price against market data, historical prices, applicable discounts (quantity, terms, delivery), and other competitive information. So, simply seeing a price in a catalog does not automatically make it fair and reasonable. The other options do not fit because price reasonableness applies to more than commercial items, and a catalog does not have to be government-published to serve as a price reference.