Frank Mante FCIPS, CMILT, CPSM
A price reasonableness analysis could be described as an exercise undertaken by a Procurement Entity (PE) which focuses on a review and evaluation of the prices offered by tenderers, with the view to ensuring that such prices are fair and reasonable to the eventual parties taking into cognisance the quality of the tenders, proposals or quotations, the Level of Effort (LoE) required to execute the assignment in question and how such offered prices compare with other prices on the market. The difficulty in determining the reasonableness of the prices of goods, works and services has been exacerbated by the clear absence of a requirement for a price reasonableness analysis in Ghana’s public procurement Regimes. Under some procurement regimes such as that of the Millennium Challenge Corporation (MCC), the subject matter of price reasonableness is fully integrated into every procurement process and for that matter, required to be demonstrated as part of every evaluation process before approval is granted for notification of award, negotiations (where necessary) and thereafter, the award of contract.
Keywords: Procurement Entity, Price Reasonableness Analysis, Public Procurement Regime