RULE: Price reasonableness and price realism, although sounding similar, are different concepts in procurement.
Some key procurement terms can be difficult to understand because the terms sound similar but involve different aspects of procurement: for example, “responsibility” and “responsiveness,” or “price reasonableness” and “price realism.” A recent GAO decision helps in distinguishing between price reasonableness and price realism. Although both terms involve analyzing an offeror’s price proposal, each looks at something significantly different