Ariz. Admin. Code § 2-7-702

Current through Register Vol. 31, No. 2, January 10, 2025

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 writing 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 submission 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 writing 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.

Ariz. Admin. Code § R2-7-702

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