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PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIAItem #21Agenda ID 12453 ENERGY DIVISIONRESOLUTION E4616October 31, 2013REDACTED RESOLUTIONResolution E4616. Southern California Edison Company
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Gather all relevant information about the product or service being priced.
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Determine if the proposed price is reasonable and provides value based on the market research.
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Price reasonableness refers to the assessment of whether a price is fair and justifiable, based on market conditions, cost analysis, or comparative pricing. Value, on the other hand, pertains to the intrinsic worth of a product or service, taking into consideration its utility and importance to the buyer.
Organizations or contractors that engage in transactions involving government contracts or federally funded projects are typically required to file price reasonableness and value assessments.
To fill out price reasonableness and value, it is essential to provide detailed data on pricing structures, market comparisons, cost breakdowns, and any methodologies used to determine the reasonableness of the price.
The purpose of price reasonableness and value is to ensure that the prices paid for goods and services are fair and reflect the true market value, thereby preventing waste of government funds and ensuring financial accountability.
The report must include pricing data, cost analysis, comparisons with similar products or services, justification for the price, and any contractual terms relevant to the transaction.
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