The prime contractor or subcontractor shall: 1) Conduct appropriate cost or price analyses to establish the reasonableness; 2) Include the results of these analyses in the price proposal; 3) When required by paragraph (c), submit subcontractor certified cost or pricing data to the Government as part of its own certified cost or pricing data.

• A. All of the above
• B. Only the first item
• C. Only the second item
• D. Only the third item

Answer: (A)

The main concept is ensuring price fairness and traceability in negotiated contracts by using cost or price analysis and by providing the government with transparent data from all parties involved.

First, conducting appropriate cost or price analyses to establish reasonableness is a fundamental requirement. The government relies on these analyses to verify that the proposed price is fair and not inflated, serving as the basis for negotiations and award decisions.

Second, including the results of these analyses in the price proposal is essential because it makes the rationale behind the proposed price visible to the government. When evaluators can see how reasonableness was determined, they can assess the rigor and validity of the pricing, which supports an informed negotiation process.

Third, when the contract requires it by paragraph (c), the prime must submit subcontractor certified cost or pricing data to the Government as part of its own certified cost or pricing data. This ensures that the government has complete, auditable data from lower tiers, enabling verification of how subcontracted costs contribute to the overall price.

So all three statements describe required practices in negotiated contracting, making them collectively correct.