Section R2-7-702. Determination of Fair and Reasonable Price

A.      For contracts or contract modifications that exceed $100,000, the agency chief procurement officer shall determine in writ- ing that the price is fair and reasonable only when one of the following requirements is met:

1.        The contract or modification is based on adequate price competition;

2.        Price is supported by an established catalog or market prices;

3.        Price is set by law or rule; or

4.        Price is supported by relevant, historical price data.

B.       The agency chief procurement officer shall request the sub- mission of cost or pricing data from the offeror or contractor when:

1.        The agency chief procurement officer cannot determine the price is fair and reasonable based on the criteria in subsection (A); or

2.        The agency chief procurement officer determines in writ- ing that it is in the best interest of the state regardless of the amount of the contract or contract modification.

C.      The agency chief procurement officer shall submit a request to the state procurement administrator to waive the requirement for submission of cost or pricing data to the state procurement administrator if the proposed contract or contract modification exceeds $100,000. The request shall be in writing and state the reasons for the waiver.

D.      The state procurement administrator shall either:

1.        Issue written approval of the request for waiver;

2.        Request additional information from the agency chief procurement officer upon which to base a decision; or

3.        Deny the request.

Historical Note

New Section made by final rulemaking at 12 A.A.R. 508, effective April 8, 2006 (Supp. 06-1).