2. Except in paragraph h, paragraph 3, in this section: when a supplier informs the client, in accordance with point 52.215-22, that it intends to subcontract more than 70% of the total cost of the work to be performed under the contract, task or market of supplies, the contracting entity must examine the technical analysis of the types and quantities proposed as well as the nature and quantity of hours of work and the mix of work. Any other data that may be relevant to the supplier`s assessment of the supplier`s ability to meet technical requirements or to the analysis of the costs or prices of the proposed service or product should also be included in the analysis. 3. Cost analysis is used to assess the adequacy of individual cost elements when certified cost or price data are required. Price analysis should be used to verify that the total price offered is fair and reasonable. (ii) base quantities and quantities of options are distinct elements; or (1) Unfair prices can increase the risk of performance and result in excessive price payments. Unfair prices occur when the price of one or more positions is vastly overvalued or undervalued despite an acceptable overall price, as shown by the application of cost or price analysis techniques. The greatest risks associated with price imbalance arise when – (ii) probable costs are calculated by adjusting the proposed costs and, if necessary, the levy, to reflect possible additions or reductions in cost elements to a realistic level based on the results of the cost realism analysis.

1. Unit prices must reflect the value of an item or service and be proportional to the basic costs of an item (e.g. B, cost of production or purchase) with respect to pricing an item based on reasonable price competition, a catalogue or a reasonable market price. No method is used to spread costs among the different items that distort unit prices.