The contracting officer is responsible for pricing in regard to the prime contract?

The contracting officer is responsible for pricing in regard to the prime contract?

• A. The determination of a fair and reasonable price for the prime contract, including subcontracting costs
• B. Approving purchasing systems of all subs
• C. Negotiating subcontract prices only
• D. None of the above

Answer: (A)

Pricing authority for the government on a prime contract rests with the contracting officer. The CO must determine a fair and reasonable price for the prime contract, and this includes evaluating the overall pricing to cover subcontracting costs as part of the prime bid or proposal. This isn’t about approving every subs’ purchasing systems or handling subcontract price negotiations in isolation—the prime contractor typically negotiates with subcontractors, but those prices must be evaluated and found reasonable as part of the prime contract’s overall price. Approving subs’ purchasing systems isn’t a standard CO responsibility, and subcontract prices aren’t negotiated solely by the CO.

So the correct statement is that the contracting officer is responsible for pricing the prime contract, determining a fair and reasonable price for the prime, including subcontracting costs.