In what situation must the CO evaluate cost or price?

A Contracting Officer (CO) is required to evaluate cost or price in every acquisition, regardless of the type of contract or solicitation process being utilized. This evaluation is a critical step to ensure that the government receives fair and reasonable pricing for the goods and services procured.

In the context of federal acquisitions, this evaluation helps to protect taxpayer interests and ensures compliance with applicable laws and regulations. The assessment of price or cost must occur even in situations where there may not be competition present, as it allows the CO to make informed decisions based on the adequacy and reasonableness of the proposed costs. This requirement is foundational in federal contracting, leading to transparency and accountability in the procurement process.

Evaluating cost or price serves as a safeguard against potential overpricing and is essential even in sole-source acquisitions, where competition may not dictate terms. Therefore, a thorough assessment in every scenario aligns with the goals of federal acquisition policies, ensuring effectiveness, efficiency, and fiscal responsibility.