Reasonable cost is a
|“||[c]ost which, in its nature and amount, does not exceed that which would be incurred by a prudent person in the conduct of a competitive business.||”|
- (a) Whether it is the type of cost generally recognized as ordinary and necessary for the conduct of a contractor's business or the contract performance;
- (b) Generally accepted sound business practices, arm's length bargaining, and federal and state laws and regulations;
- (c) The contractor's responsibilities to the government, other customers, the owners of the business, employees, and public at large; and
- (d) Any significant deviation from the contractor's established practices."