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.
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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.
Jeffrey “Jeff” Hetrick retired in 2013 after 34.5 years of Federal Service where he worked for the Defense Contract Audit Agency (DCAA). During his career, Jeff held numerous positions with DCAA, including comprehensive labor auditor, supervisory auditor, EDP auditor, DCAA Headquarters Program Manager, and Branch Manager. From October 2003 until his retirement, he was the Branch Manager of the Fairfax Branch Office where he managed an audit staff of approximately 40 auditors. He was responsible for all DCAA audits performed at both large major defense contractors and numerous smaller contractors under his cognizance. These audits included annual audits of incurred costs, business system audits, audits of forward pricing proposals and rate agreements, CAS compliance, financial capability, claims and equitable adjustments, and defective pricing. During his time as a DCAA Headquarters Program Manager, Jeff was selected to participate in the LEGIS program and spent 6 months working on Capitol Hill for Congressman John Spratt (D-South Carolina). He provided accounting and auditing advice and research to the Congressman in raising the TINA threshold. In addition, he helped prepare the DCAA Director and Deputy Director for numerous testimonies before both House and Senate Committees.In early 2003, Jeff was selected by the DCAA Director to lead a team to review the Iraq Reconstruction Contingency contracting efforts of the Department of Defense. He presented the team’s findings and recommendations to the DOD Comptroller resulting in contingency contracting reforms. These efforts earned Jeff the DCAA Meritorious Civilian Service Award, the second highest award given by DCAA. Jeff holds a CPA License in the state of Virginia. He graduated from George Mason University with a B.S. in Business Administration (Accounting) and an M.S. in Information Systems. He also has an M.S. in Administration from Central Michigan University.
Continuing Education Credits
5.5 CLE/0.55 CEU/ 6.5 CPE (Finance) credits may be earned for each day of this course. One day is recommended for 8 CLP credits.
This course has been approved for CLE in CA, PA, VA and TX. Because this activity has been approved in another CLE jurisdiction, you may also receive credit for participation in AK, AZ, AR, CO, FL, HI, IL, ME, MT, NJ, NY, ND, and WI (additional state requirements may apply). If you are seeking CLE credits for a jurisdiction other than the ones listed above, please contact us for additional information.
This course can be submitted to Project Management Institute (PMI) for PDU. Upon their approval, it may be worth 5.5 PDU credits.