Fair and Reasonable Pricing

Fair and Reasonable Pricing applies to the purchase of Intergovernmental and Interagency Agreements, Real Estate, Goods (e.g. Supplies, Equipment, Commodities, etc...) less than $10,000 and Personal Service (e.g. Contract Services, Research, Consulting Services, etc...), and Construction purchases less than $25,000.

While there are many ways to evaluate fair and reasonable pricing, some of these include:

• Hourly rates within range for the labor category

• Professional judgment – why is the pricing fair and reasonable for the scope of work?

• Catalog and Market Prices

• Pricing from similar projects or for similar products and services bought in the recent past

• Research on the internet

• Competitive solicitations, which under the procurement code are generally considered evidence of fair and reasonable pricing

The DNR Purchasing Office will contact the Division Procurement Liaison with any questions regarding fair and reasonable pricing.