Consider a Multiple Award Task Order contract (MATOC) for Information Technology (IT) services. Out of the 9 companies that competed for this contract, 3 companies received the actual contract award. The original award contains negotiated labor rates for the associated labor hour categories that relate to the work we need them to do under this contract.

You just sent out a task order RFP for IT support in Anchorage, Alaska. Part of the criteria for responding to a task order RFP requires the contractor to submit their Basis of Estimate (BOE) to help the technical evaluation team understand if their proposal reflects a clear understanding of the work required as well as whether their approach to the requirement is feasible. The evaluation criteria is LPTA. The anticipated contract type for the order is FFP. Assume the dollar amount is $500,000, and the service is commercial.

Neither Company 1 nor Company 3 submits a proposal. You received letters from both companies explaining their reasoning for not responding to the TORFP. You review the technical report prepared that analyzed Company 2's proposal and discover that there are significant other direct costs (including travel) associated with this work that are included in the company's fixed price proposal. These costs are unique to this task order and no data exists within the government to validate the need and reasonableness of these costs.

Where in the Contract Pricing Reference Guide (CPRG) might we look for guid- ance on analyzing certain types of costs, specifically the travel costs proposed as Other Direct Costs, and what questions might you ask regarding those costs?

Which specific price or cost analysis techniques would you perform to determine the price fair and reasonable?