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Management Concepts

Cost and Price Analysis

Next dates

Jul 15—19
5 days
Washington, District of Columbia, United States
USD 1209
USD 241 per day
Sep 9—13
5 days
Atlanta, Georgia, United States
USD 1209
USD 241 per day
Dec 2—6
5 days
Tysons, Virginia, United States
USD 1209
USD 241 per day
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The acquisition of goods and services with Federal money requires diligence and business acumen. You will be able to conduct acquisitions for your organization with confidence with a better understanding of price and cost analyses in accordance with the Federal Acquisition Regulation (FAR). This course is designed for those with a good understanding of the Federal contracting process.

Learning Objectives

  • Determine if pricing is fair and reasonable
  • Suggest modifications to price or cost to assure reasonableness

Course Topics

Contract Pricing—An Overview

  • Identifying the Government’s Pricing Objective
  • Identifying Government Approaches to Contract Pricing
  • Identifying Potential Participants in the Price Analysis
  • Exercise: Fair and Reasonable

Conducting Market Research for Price Analysis

  • Reviewing the Independent Government Estimate
  • Reviewing Acquisition Histories
  • Research Market Data
  • Using Market Research to Estimate Probable Price
  • Exercise: Brittle Bearings

Obtaining Offeror Information for Analysis

  • Requiring Data Other Than Certified Cost or Pricing Data
  • Requiring Certified Cost or Pricing Data
  • Exercise: Motley Systems

Applying Price-Related Factors

  • Applying Assumed Administrative Cost Factors
  • Applying the Buy American Statute Criteria
  • Applying Government-Furnished Property Factors
  • Applying Transportation Cost Factors
  • Lease vs. Purchase
  • Price Evaluation Preference for HUBZone Small Business Concerns
  • Determining Offered Price(s)
  • Evaluating Possible Award Combinations
  • Exercise: Loadstar

Comparing Prices

  • Making Comparisons
  • Types of Comparisons

Calculating the Should-Pay Price

  • Price Index Numbers
  • Trend Analysis
  • Price-Volume Analysis
  • Cost Estimating Relationships
  • Ratio of Price to Estimated Direct Cost

Introduction to Cost Analysis

  • Cost
  • Cost Analysis
  • Exercise: Costs and Cost Analysis

Contract Cost Principles

  • General Cost Principles on Allowability
  • Specific Cost Principles
  • Exercise: Applying Selected Cost Principles
  • Exercise: Allowability

Preparing for Cost Analysis

  • Collecting and Reviewing Available Data
  • Requesting and Analyzing Technical Support
  • Exercise: X.Pert Analysis Request
  • Requesting and Analyzing Audit Support
  • Exercise: FAST Audit

Direct Labor Costs

  • Analyze Direct Labor Mix
  • Analyze Labor Hour Estimates
  • Analyze Wage Rate

Direct Material Costs

  • Proposed Direct Material Mix
  • Summary Cost Estimates
  • Detailed Cost Estimates
  • Major Subcontract Requirements

Indirect Costs

  • Importance and Composition of Indirect Costs
  • Indirect Cost Rates
  • The Indirect Cost Allocation Cycle
  • Exercise: Cover Industries

Profit or Fee

  • Identifying the Factors Affecting Profit/Fee Analysis
  • Developing an Objective Using the DOD Weighted Guidelines
  • Developing an Objective Using the Department of Transportation Structured Approach

Preparing for Negotiation

  • Trade-Off Analysis
  • Contract Type and Prenegotiation Objectives
  • Documentation
  • Exercise: Woodson Works

Who should attend

This course is designed for personnel involved in establishing or modifying the price or cost of a government contract.

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