Cost and Pricing Trends
2:00-3:30pm ET

• January 16: Price Analysis and Fair and Reasonable Pricing
• January 18: Commercial Item Pricing and Challenges in the Current Environment
• January 23: Direct and Indirect Costs and a Little Thing Called G&A!
• January 25: Profit – Yes, contractors are allowed to have some!?
• January 30: Cost Analysis and Cost Realism and Their Expanding Roles in Contract Pricing
• February 1: Defective Pricing – Hazards & Defenses

Part I: Price Analysis and Fair and Reasonable Pricing

Summary

Price Analysis and Fair and Reasonable Pricing topics covered will include:

• Regulatory requirements and expectations related to price analysis
  • What is price analysis and when is it required?
  • Data requirements - two types of cost and pricing data – Why, when and how TINA (Now TCPD) applies.
• Ramifications of inadequate price analysis on cost recovery
• How and when to perform and document price analysis
• Preparing for the analysis
  • Market research
  • Price related factors and award combinations
• Comparative analysis techniques including
  • Competition
  • One-offer when more were expected
  • Use of prior paid prices for the same or “of a type” items
  • Parametric comparisons
  • Catalogs and published price lists
  • Federal supply schedules
  • Price set by law
  • Independent estimates
  • Value analysis
  • Requesting and use of Data Other Than Certified Cost Or Pricing Data

Join FORVIS' Bill Walter for an interactive discussion on current topics in cost & pricing.

Part II: Commercial Item Pricing and Challenges in the Current Environment

Summary

This Virtual Training covers the second half of the commercial item acquisition process – Pricing!  The identification and documentation of the Commercial Item Description (“CID”) was covered in our previous broadcast.

The determination of fair and reasonable pricing for the commercial item or service is probably the most challenging task for the contracting officer today. One of the principle challenges recognized today, is identifying and evaluating a price for a commercial item or service to be fair and reasonable.

This virtual class will prepare buyers and sellers to maximize efficiency with analysis tools and techniques that are provided in guidance available to federal oversight officials.

The instructor will review current guidance available – including the recently issued Commercial Item Pricing Guidebook – Part B, Pricing issued in February of this year.   We will also discuss industry best practices and provide some current, relevant examples to help fill the knowledge gap and close the loop on commercial item pricing.

Learning Objectives       

Upon completion of this session the participant should know:

• Price analysis tools and techniques to support fair and reasonable commercial item price determinations
• Guidelines available in several agencies to support to price analysis process for commercial items
• Additional layers of approvals placed on procurement officials when using commercial pricing
• Recent trends and developments affecting the ability of the contracting officer to award commercial item contracts

Part III: Direct and Indirect Costs and a Little Thing Called G&A!

Summary

Join FORVIS' Bill Walter for an interactive discussion of using costs for estimating, accumulating and reporting costs under government contracts.  He will discuss various types of costs, building up costs and using the cost structures and cost allocation tools.

Learning Objectives

Among the topics to be discussed will be:

• What is a cost? – How does the FAR definition help us understand the various categories of cost?
• Direct Costs – What are the five key elements to help decide if a cost should be direct?
• Indirect Costs – What are four tests to determine if a cost should be indirect?
• G&A – What is properly included in the G&A expense pool?
• Allowable Cost – What are the black, white and grey areas associated with this often confusing, unique element of Federal contracting.

Part IV: Profit – Yes, contractors are allowed to have some!?

Summary

Join FORVIS' Bill Walter for an interactive discussion of profit and fee determination on Government contracts.  FAR 15.404-4(b) that requires a contracting officer to use a structured approach to establish a profit or fee objective.  While the FAR does not identify a specific approach that must be followed, it does identify some of the factors that should be considered.  Some agencies, such as the Department of Defense and NASA, do have their own structured approaches that are used by contracting officers within each agency.  Bill will discuss various tools and methods of determining profit and fee objectives.

Learning Objectives

Among the topics to be discussed will be:

• Profit as a motivator for the contractor
• Structured approaches and relevant factors that should be considered
• Agency specific structured approaches to profit and fee
• Cost of Money and its impact on profit objectives
• Statutory limitations on fee
• Strategies for negotiating profit and fee objectives.

Part V: Cost Analysis and Cost Realism and Their Expanding Roles in Contract Pricing

Summary

Join FORVIS' Bill Walter for an interactive discussion of considerations in using cost analysis to support proposed pricing for prime and subcontracted goods and services. Among the topics to be discussed will be:

• Cost Analysis – When is it required?
• Cost or Pricing Data - How much is enough?  What type of data is needed?
• Cost Realism – Critical in the cost reimbursement marketplace,
• Certification – Who should certify what?
• Tools available – Where can you find cost analysis resources.
• Documentation – How much is enough, again . . .

David and Bill will answer these questions:

• Can a cost be realistic but unreasonable?
• Can a cost be reasonable but unrealistic?
• Can certain individual costs be unreasonable but overall costs be reasonable?

Part VI: Defective Pricing – Hazards & Defenses

Summary

In this final session of this season’s Trending Cost & Pricing Issues, Bill Walter of Dixon Hughes Goodman and his guest host David Bodenheimer with Crowell & Moring will introduce one of the unique weapons in the Federal Government’s arsenal. Since 1963, when applicable, Public Law 87-652 (aka the “Truth In Negotiations Act” (TINA)) provides a contractual right to the Government – in certain circumstances -  where the Contracting Officer can reduce contracted prices – after the fact. When used effectively – TINA significantly levels the playing field regarding superior knowledge regarding cost and pricing data – while at the same time increasing the cost of contracting with the Federal Government.  Our instructors will present the steps used by the Government to seek out and identify Defective Pricing.  We will also identify strategies and defenses you can take to avoid the risk of contract price adjustments and other penalties.  Our instructors will examine TINA from several viewpoints and outline the risks imposed and review relevant case law and interpretations to help you understand the wide net that can be cast under this law – and steps you can take to avoid potential challenges.

This season finale will:

• Discuss relevant history of defective pricing
• Identify the exemptions to TINA and pricing strategies to avoid TINA
• Identify the differences between Certified Cost or Pricing Data and Data other than Certified Cost or Pricing Data
• Define the criteria for Defective Pricing
• Provide some relevant examples of the Hazards contractors face
• Cover indicators of defective pricing
• Review DCAA’s Program Plan and its impact on defective pricing audits in 2016
• Discuss DCAA audit guidance programs related TINA
• Present a discussion of recent, relevant cases

Join FORVIS' Bill Walter for an interactive discussion on current topics in cost & pricing.