SpendQueryBeta

FAR and DFARS › FAR Part 19: Small Business Programs › Subpart 19.8

FAR 19.807 Estimating the fair market price.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells the contracting officer how to estimate a fair market price for work that an 8(a) contractor will perform. It matters to 8(a) contractors because the price they are offered is based on this estimate, which uses cost or price analysis and comparisons to commercial and prior Government prices.

Applies to: Contracting officers pricing work to be performed by an 8(a) contractor

What it requires

  • Estimate the fair market price of the work to be performed by the 8(a) contractor
  • Use cost or price analysis and consider commercial prices, in-house cost estimates, data submitted by the SBA or the 8(a) contractor, and data from other Government agencies
  • For a repeat purchase, consider recent award prices for the same items or work if quantities, conditions, terms, and performance times are comparable
  • Adjust the estimated price to reflect differences in specifications, plans, transportation costs, packaging and packing costs, and other circumstances

Key terms: fair market price · 8(a) contractor · cost or price analysis · certified cost or pricing data · repeat purchase

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) The contracting officer shall estimate the fair market price of the work to be performed by the 8(a) contractor.

(b) In estimating the fair market price for an acquisition other than those covered in paragraph (c) of this section, the contracting officer shall use cost or price analysis and consider commercial prices for similar products and services, available in-house cost estimates, data (including certified cost or pricing data) submitted by the SBA or the 8(a) contractor, and data obtained from any other Government agency.

(c) In estimating a fair market price for a repeat purchase, the contracting officer shall consider recent award prices for the same items or work if there is comparability in quantities, conditions, terms, and performance times. The estimated price should be adjusted to reflect differences in specifications, plans, transportation costs, packaging and packing costs, and other circumstances. Price indices may be used as guides to determine the changes in labor and material costs. Comparison of commercial prices for similar items may also be used.

Sections that refer to it

  • 19.202-6 Determination of fair market price.

← 19.806 Pricing the 8(a) contract. · 19.808 Contract negotiation. →

Rule changes for FAR Part 19

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 19.807 Estimating the fair market price · SpendQuery