When should cost realism analysis be performed?

Cost realism analysis should be performed during the evaluation of proposals in competitive procurements, particularly when the contract involves complex or high-risk projects. It is essential to assess whether the proposed costs are realistic in relation to the technical requirements and the risks involved. This analysis helps ensure that the proposed costs align with the government's expectations and can support successful project execution. Additionally, it is crucial when determining the reasonableness of costs for cost-reimbursement contracts.