When acquiring commercial items, what must the contracting officer establish regarding price?

In the context of acquiring commercial items, the contracting officer is required to establish price reasonableness as per the guidelines provided in specific parts of the Federal Acquisition Regulation (FAR). This requirement is crucial because it ensures that the price offered for commercial items is fair and reflects the market value, thereby protecting the interests of the government while also enabling competitive procurement.

The rationale behind establishing price reasonableness is to confirm that the price is consistent with the current market rates and does not exceed what is generally charged for similar goods or services. The FAR provides several methods for determining price reasonableness, including comparing prices received in response to solicitation, comparing to prior contract prices, and utilizing historical data, among other techniques.

Furthermore, understanding price reasonableness helps in maintaining accountability and transparency in the procurement process, which is vital for compliance with federal regulations and for fostering fair competition in the marketplace. This makes option C the correct choice in the context of federal contracts involving commercial items.