SpendLogic works with government primes and subs to unlock organizational savings and fix procurement compliance issues. Our software solves the top three CPSR findings: Price Analysis, Commercial Item Determinations, and Source Justifications.

In this video, we will show you how to use SpendLogic to create a price analysis based on market research (market comparables) that will pass audit every time.


Hi, I’m Patrick Mathern, founder of SpendLogic. We work with government primes and subs to unlock organizational savings and fix procurement compliance issues. In this short video tutorial, I’m going to show you how to use SpendLogic to create a FAR-compliant price analysis report that relies on market comparables as a basis. Let’s get started.

To start a new price analysis, from any screen in SpendLogic, click the New Report button at the top of the screen, and click Price Analysis. You’ll see that you have two tabs on this screen. You won’t be able to advance to the Parts tab\ until the Procurement tab has been completed. Work through each of the elements on this screen, making sure to answer each question. And when you’ve reached the bottom, click Next.

You’ve now arrived at the Parts screen. At this point, you can choose to either add parts or service. In this tutorial, we’ll cover parts. For services, also known as rates and factors, check out the “Services” tutorial at spendlogic.com/help. Click the Add Part button to add your first part. Start entering the part number you’re analyzing.

You’ll notice that a list of matching part numbers appears. You can either choose from this list or scroll to the bottom and add a new part. Once you choose a part, the description is filled in for you. Enter the quantity of parts that you’re analyzing, and click Add. Your Parts page now shows a line item for the part that you just added. At this point, you have two actions available, edit and delete. When you complete this line item, you’ll also have the ability to download and copy this report.

If you need to add additional parts, follow the same process by clicking Add Parts again. Do this for each part you intend to include in this PO. You can always return to this tab and add additional parts later. Click the edit pencil on the line that you just created. This brings you to the next tab, which has been renamed to match the part you’re currently editing. When you’re working on a PO with multiple parts, this is an easy way to keep track of which part it is that you’re working on.

SpendLogic first checks to see if there are reports in the system available for you to repurpose. This screen shows all the available reports. Review the list, and if you see one that can be updated and repurposed, copy it by choosing the Select button. Doing this can save a lot of time since it reuses data that has already been entered. In this case, we’re going to create a new report from scratch, so click Create a New Report. The recommendation wizard can help you determine which methods to use for your analysis.

For this video, we’re going to skip the wizard by choosing market comparables. For the first time, we’re now able to see the full analysis screen for this part. In the upper left, you can see the analysis and proposed prices. This will update as you work through the analysis screens. Below this, you can see the steps that will be required to complete this analysis. Your current step is highlighted with a blue banner.

We’re currently on the part number and quantity step. The steps below this may change based on the inputs on later screens. If you need to go to a prior step, you can always click it in this left-hand navigation menu. Go ahead and click Next on this page. We’ve now moved down to the Proposed Price Details step in the left-hand navigation. The purpose of this screen is to enter details related to proposed price.

Clicking the input box for Current Delivery Date allows you to type in a date using a month/day/year format. The date you choose to enter into this box should refer to the midpoint of deliveries. This is used for escalation purposes in a later step. Proposed price per unit refers to the price that was proposed by the supplier. Be sure to enter only the recurring price in the price-per-unit box.

Non-recurring is handled separately in the next step. When you’re done with this page, click Next. Market Comparables screen is where we specify the results of our market research. SpendLogic will then compare our market research to the proposal and state an analysis position. Opening this page for the first time, we’re met with a blank input sheet that has our part number, description, and required quantity.

Click Add Source to get started. The pop-up screen asks us to input details of our first comparable source. For source name, we’re being asked for the name of the supplier. Description, input a short description of what it is that you’re using as a comparable item. Include as much information as you can. Price.

Enter the price per unit quoted by the comparison source. Quantity. Enter the number of units that the price is good for. If the quoted quantity is different than the number of units you’re buying, SpendLogic will help you adjust the price for that difference. Source URL or reference location. Enter the website or name and date of the catalog that is being used as a comparison. Non-recurring.

If the source requires non-recurring, be sure that it’s broken out from the recurring price above, as is indicated here. Upload. Take a screenshot or upload a scanned file that an auditor can view and validate your inputs. Terms and conditions. Answer the question using one of the choices provided. If you indicated the quantities are different between your purchase and the market comparable, the next screen will help you adjust price for that difference.

This screen is covered in greater detail in the “Historical Price Analysis” tutorial video. ♪ [music] ♪ Proposed item and market conditions. Choose whether the item you’re using for a comparison is identical or similar to the item being purchased. This is where you ensure that the sources are apples to apples.

SpendLogic allows you to adjust price for similarities and differences so that you’re comparing like items. For a detailed look at how to analyze similar two parts, check out the “Historical Price Analysis” tutorial video. When you finish, you’ll see that the supplier has been added to the table. You can add as many sources as you’d like by continuing to click the Add Source button at the top.

♪ [music] ♪ SpendLogic compares all of the sources and calculates the analysis price based on the lowest price source you site. This is our Risk Check screen. As with all methods, if you see a lot of red flags on this screen, it means your report is likely to be scrutinized.

Try to minimize the number of risk checks that you see. For those that can’t be removed, make sure your explanations are complete. Clicking Next takes us to the final summary. You can either finalize your report or download a copy. Remember, until your report is finalized, it’s subject to changes in the BLS. BLS indices are updated monthly, so your final report values may change. It’s a best practice to go ahead and finalize your report as soon as you can.

This concludes our video. Thanks for watching. If you have any questions on this or any other feature in SpendLogic, visit spendlogic.com/help or email us at [email protected]. ♪ [music] ♪

Free trial
Request your free SpendLogic trial license today! It’s 100% free – no commitment or credit card required.

    Right Menu Icon