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The Trifecta: Price Analysis, Cost Analysis, and Contract Negotiations
October 23 @ 9:00 am - October 25 @ 4:00 pm
The US Government relies on contractor pricing proposals and cost representations to establish prices and/or reimburse actual costs. In this regard, the burden is on the buyer to demonstrate that prudent business actions have been taken to determine that the prices paid to suppliers are fair and reasonable in accordance with the Federal Acquisition Regulation (FAR) Subpart 15.4, Contract Pricing. In addition, FAR Part 31, Contract Cost Principles And Procedures, contains cost principles and procedures for the pricing of contracts, subcontracts, and modifications to contracts and subcontracts whenever cost analysis is performed. Consequently, it is also incumbent upon the analyst to ensure that proposed costs are in conformance with FAR Part 31. This course is designed to provide specific guidance in performing and documenting price analysis and cost analysis for goods and services acquired for US Government contracts and subcontracts. Students will benefit from attending either one day, two days, or all three days of this course, depending on the extent to which they utilize/need to understand price analysis and/or cost analysis.
Learning Objectives: Upon completion of this course, the participant should know the US Government’s requirements for conducting price analysis and cost analysis for US Government contracts & subcontracts, including
- Regulatory requirements and expectations related to price analysis and cost analysis
- How and when to perform and document price analysis and cost analysis
- How and when to perform and incorporate technical analysis
- Documenting the results of price analysis and cost analysis
- Principles of direct and indirect cost identification, accumulation, distribution, and estimation
- Criteria regarding allowability/unallowability of the selected cost elements included in FAR Subpart 31.2
Day 1: Price Analysis
This course is designed to provide specific guidance in performing and documenting price analysis for commercial and non-commercial goods and services acquired for US Government contracts and subcontracts.
Day 2: Cost Analysis
This course is designed to provide specific guidance in performing and documenting cost analysis for goods and services acquired for US Government contracts and subcontracts in those situations when Truthful Cost or Pricing Data (formerly know as Truth in Negotiations Act) applies, or when price analysis alone is insufficient to demonstrate the reasonableness of lower-tier suppliers’ prices.
Day 3: Contract Negotiations
Perform a simulated contract award through the application of cost analysis. Participate in a simulated negotiation using cost analysis. For the cost analysis case, participants are given a set of raw data and split into negotiation teams in order to perform a cost analysis, and the teams then use the results of their cost analysis to conduct a simulated negotiation. The day concludes with a comprehensive review of price and cost analysis, using a question and answer game style format that maximizes student interaction.
The Public Contracting Institute is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.