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Who should attend
This course is designed for new hires to the contracting career field and anyone interested in developing insights into contract pricing.
About the course
Beginning with an in-depth review of the market research process, this course will help you master contractor pricing strategies. You’ll learn to develop a Cost-Volume-Profit analysis, calculate contribution margin estimates, and determine cost-estimating relationships in order to accomplish an effective price analysis pursuant to FAR Subpart 15.4. After learning the basic elements of price and cost analysis, you’ll build and defend a pre-negotiation objective, including a minimum and maximum pricing objective with a Weighted Guidelines assessment. After successfully defending your pricing objectives, you will practice face-to-face negotiations. Your performance will be assessed by graded exams on math fundamentals and applied course material, as well as an exercise involving participation in and completion of negotiations.
What You Will Learn
- The Truth in Negotiations Act (TINA), including its purpose in mitigating government cost risk
- The policies and procedures for applying the Cost Accounting Standards Board (CASB) rules and regulations to negotiated contracts and subcontracts
- Federal contract cost principles and procedures, including the concept of cost allowability
- Cost Estimating Relationships, given market research data
- Contracting strategies, including the contract type and other incentives, appropriate to various acquisition situations
- Financing arrangements, their order of preference, and the situations for use
- Cost analysis techniques, price analysis techniques, and cost realism analysis appropriate to various acquisition situations
How You Will Benefit
- Demonstrate the ability to execute fundamental quantitative pricing skills.
- Successfully distinguish various seller pricing strategies given an acquisition situation.
- Describe the TINA including its purpose in mitigating government cost risk.
- Identify the policies and procedures for applying the Cost Accounting Standards Board (CASB) rules and regulations to negotiated contracts and subcontracts.
- Identify the contract cost principles and procedures.
THE CONTRACTING ENVIRONMENT
- Unique aspects of government contracting compared to commercial contracting
- Truth in Negotiations Act (TINA)
- Cost Accounting Standards (CAS)
- Market research
QUANTITATIVE METHODS FOR CONTRACT PRICING
- Price indexing
- Cost estimating relationships
- Cost-volume analysis
- Cost-volume-profit analysis
- Contract types, incentives and risks
- Contract financing arrangements
- Differences between cost and price analysis
- Price analysis techniques
- Price related factors
- Scenarios for price analysis
- Process, players, and initiatives
- Direct and indirect costs
- Facilities Capital Cost of Money (FCCOM)
- Profit (Weighted Guidelines)
- Certification, sweeps, defective pricing, and final pricing
Alexis Kirksey is the Program Manager for The Contracting Education Academy at Georgia Tech, operating within the Georgia Institute of Technology’s Enterprise Innovation Institute. Her expertise includes providing consultation to government and industry in all aspects of government contracting, i...
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