The contracting officer shall determine a cost to be reasonable if it does not differ from or exceed in amount that which would be incurred by a prudent person in the conduct of a competitive business, in accordance with the provisions of this chapter.
In determining the reasonableness of a given cost, the contracting officer shall consider the following factors:
Reasonableness of specific costs must be examined with particular care in connection with firms or their separate divisions that may not be subject to effective competitive restraints.
No presumption of reasonableness shall be attached to the incurrence of costs by a contractor.
If an initial review of the facts results in a challenge of a specific cost by the contracting officer or the contracting officer's representative, the burden of proof shall be upon the contractor to establish that such cost is reasonable.
D.C. Mun. Regs. tit. 27, r. 27-3307