This transaction set enables suppliers and contractors to submit pricing proposals to buyers in response to contract opportunities or requests for pricing. Typically sent by a vendor, supplier, or contractor to a purchasing organization, the 805 documents detailed cost information for proposed contracts or pricing agreements. The structure centers on three mandatory segments that establish the proposal framework: the BCP (Beginning Segment for Contract Pricing Proposal) segment, which initiates the proposal and captures key proposal identifiers; the SPI (Specification Identifier) segment, which references technical or specification documents relevant to the pricing; and the PD (Pricing Data) segment, which contains the actual cost information and pricing breakdown for the proposed contract.

For example, Advanced Manufacturing Solutions prepares a contract pricing proposal in response to a request from Delta Aerospace. AMS uses the 805 transaction set to structure its response, including company contact information and location details in the N1 loop, specification references in the SPI segment, and detailed line-item pricing organized through the PD loop. The proposal may reference multiple cost categories through the CBS (Cost Breakdown Structure) loop if AMS is breaking down costs by operating expense categories, and includes supporting cost accounting data in the CB1 loop. Delta Aerospace receives the complete, machine-readable proposal and can systematically evaluate AMS’s pricing against other vendors’ submissions.