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> Home / Acquisition Topics / Contracting / Price Based Acquisition

Price Based Acquisition

Overview

Price-based acquisition is essentially making purchases without reliance upon the supplier's cost information. Price-based acquisition (PBA) is a way of doing business that begins with identification of a need and flows through post-award activities. The decision to use a price-based approach is driven by choices made during the Requirements Definition process, is heavily dependent on risk mitigation and the chosen acquisition strategy, and is aided by competition or alternatives. In its purest form, PBA results in a firm-fixed-price (or fixed-price with performance incentives) contract and a fair and reasonable price is established without obtaining supplier cost data. The intent behind moving to price-based acquisition is to eliminate, to the greatest extent possible, differences between Government contracting and commercial purchasing. Expected benefits include reduced prices for military products (by enabling companies to integrate their military and commercial production lines) and greater access to commercial products, technologies and services.



Policy and Guidance


Acrobat Document Acquisition Program Structure Guide
Acrobat Document Background on Section 912 of the FY98 Defense Authorization Act
Acrobat Document Price-Based Acquisition



Success Stories

Document Leveraging Buying Power for Enterprise Software
Document Reducing Cost/Schedule for TOMAHAWK All-Up-Round Program




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Deputy Assistant Secretary of the Navy for Acquisition Management, DASN (ACQ)
Director, Acquisition Career Management
Deputy Assistant Secretary of the Navy for Logistics, DASN (LOG)


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