2-34.3 Comparison with Historical Prices

This price analysis technique involves comparing previously proposed and contract prices with current proposed prices for the same/similar items in comparable quantities. The pricing analyst should ensure that historical prices are still reasonable in the marketplace and serve as a valid basis for comparison. Just because a historical price exists does not mean that it is valid for comparison purposes. The following considerations apply to comparison with historical prices:

The pricing analyst must adjust the historical price accordingly so that a direct comparison can be made with the proposed price.