Assignment 2: Price AnalysisAssume you will only be allowed to use one (1) method for performing price analysis for the duration of your career. Write a 1-2 page paper in which you determine which...

Running Head: PRICE ANALYSIS
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Price Analysis
Running Head: PRICE ANALYSIS
PRICE ANALYSIS
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Characteristics of Government Contracting That Affect Pricing
A government contractor is defined as a private company that is given the mandate of producing goods or services under government contracts. Government contracting is characterized by a fixed-pricing policy accompanied by prospective price determination. During such circumstances, the contractor is confronted with a fixed price for a given initial period of performance whereby prices for preceding periods are to be changed based on factors initially agreed upon by the two parties involved. Another characteristic is that government contracting may be accompanied by fixed-ceiling prices in which the contractor gets nothing more than a fixed ceiling price initially agreed upon during the formation of the contract. Here, actual price determination is done after the completion of the contract basing on what was initially agreed upon in the contract. Lastly, government contracting may be associated with firm-fixed-prices where the contractor is expected to only receive a fixed amount for the effort provided regarding a given work for a specified period. Thus, a fixed-pricing policy is considered a fair and reasonable pricing strategy (Cost and Price Analysis in Government Contracts, 2012).
How to Forecast Price Acquisition
Forecasting price acquisition has no specific formula. However, there are steps...