1.3.1.  Previous Similar Contracts.

1.3.1.1.  Pricing from previous, similar contracts can be a valuable source of information in formulating the IGE. For example, let's say the requirement is for the establishment of an indefinite delivery-indefinite quantity (IDIQ) contract for various paving requirements. The price schedule contains 200 individual line items. In the previous competition for the same or similar requirements, six offerors responded. In this scenario, you may use the competitive prices of the six offerors in the development of the IGE for the follow-on paving contract, considering any consumer price index adjustments.

1.3.1.2.  While this is an excellent source of information, you must use caution and recognize certain extenuating circumstances may invalidate the data. For example, if using unit prices from a previous requirements or IDIQ type or sole source contracts, you must consider how those prices were determined fair and reasonable. These are pertinent questions to ask:

1.3.1.2.1.  Did you individually analyze the unit prices?

1.3.1.2.2.  How old is the data?

1.3.1.2.3.  Do prices need adjustment for special site conditions, changes in labor rates or materials?