Type 3 material cost is defined as which of the following?

Type 3 material cost is defined as which of the following?

• A. A unit price less than $350 and procured from a private supplier
• B. A unit price less than $250 and procured from an OGA source
• C. A unit price less than $100 and procured from a foreign source
• D. A unit price less than $500 and procured through local vendors

Answer: (B)

Type 3 material cost refers to low-cost items that are bought through an Other Government Agency (OGA) source to speed procurement. The defining rule is that the unit price is under $250 and the source is an OGA, which keeps these inexpensive items moving quickly through a streamlined government-to-government channel. That’s why the option describing a unit price under $250 procured from an OGA source is the correct match. The other descriptions don’t fit because they specify different price thresholds or sources (private supplier, foreign source, or local vendors) that aren’t part of the Type 3 category.

Type 3 material cost refers to low-cost items that are bought through an Other Government Agency (OGA) source to speed procurement. The defining rule is that the unit price is under $250 and the source is an OGA, which keeps these inexpensive items moving quickly through a streamlined government-to-government channel. That’s why the option describing a unit price under $250 procured from an OGA source is the correct match. The other descriptions don’t fit because they specify different price thresholds or sources (private supplier, foreign source, or local vendors) that aren’t part of the Type 3 category.