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Provider:
ESI International
Topic(s):
Purchasing/Procurement
Who Should Attend?
Contractors, government personnel
Full Seminar Description
This course will explore how you determine the appropriate price for a contract , how the government evaluates the prices, and how do contractors set prices. This course offers a comprehensive, practical approach to establishing and evaluating prices for government contracts. Receive a thoroughly up-to-date coverage of the Federal Acquisition Streamlining Act of 1994 and the Clinger-Cohen Act on key pricing issues. Learn about updates to the Truth in Negotiations Act and the Federal Acquisition Regulation cost principles. Topics include: An Introduction to Pricing; Government Pricing Policies; Contract Pricing Arrangements; Audits; Pricing Strategies; The Estimating System; Preparation of the Cost Proposal; Market-Based Pricing-Price Analysis; Cost-Based Pricing-Cost Analysis; Truth in Negotiations Act and Special Pricing Tasks. 5 days. Fee per person: $1845.Class Length: 5 Days
Class Hours: 8:30 a.m. - 3:30 p.m., except last day 8:30 a.m. - 12:30 p.m.
Learn How To
- Develop and maintain cost estimating systems that deliver justifiable pricing information
- Evaluate price and cost proposals
- Establish and justify "fair and reasonable prices"
- Prepare successful price and cost proposals
- Recognize and apply common industry pricing strategies
- Know the right types of cost- and pricing-related data to require from offerors
- Identify the low offer or through price-related award factors
Course Synopsis
How do you determine the appropriate price for a contract? How does the government evaluate prices? How do contractors set prices? The answers to these questions form the core of this course. Contracting officers are required to award contracts at "fair and reasonable prices." While this sounds clear, it presents an enormous challenge to contractors and government personnel. Contractors must establish and support their proposed prices in a manner that enables the government to make a determination of price reasonableness. And, from the other side, government personnel must exercise skill in price and cost analysis to support the contracting officer's pricing decision. Mistakes in the process can be costly to all parties concerned.This course offers you a comprehensive, practical approach to establishing and evaluating prices for government contracts. You'll receive thoroughly up-to-date coverage of The Federal Acquisition Streamlining Act of 1994 and the Clinger-Cohen Act on key pricing issues. Plus, you'll learn about updates to the Truth in Negotiations Act and the Federal Acquisition Regulation (FAR) cost principles and about the unique challenges you face when pricing commercial items.
Course Topics
An Introduction to Pricing- How contractors set prices
- How the government evaluates prices
Government Pricing Policies
- The pricing objectives - fair and reasonable prices
- The role of the contracting officer in the pricing decision
- Submission of cost or pricing data
- Independent contract pricing
- Contingencies
Contract Pricing Arrangements
- Uncertainty and risk in cost estimating
- Types of contracts
- Allocation of risks
- Incentives to control costs
Audits
- Government's right to audit
- Audit policies and procedures
- Types of cases being audited
- Contractors' preparations for government audits
- Contractor Risk Assessment Guide
Pricing Strategies
- Market-based strategies
- Cost-based strategies
- Customer-based strategies
- Proactive vs. reactive strategies
The Estimating System
- The importance of a sound cost estimating system
- Definitions of some generally applied estimating techniques
- Characteristics of a sound cost estimating system
- The relationship between the cost estimating system and the pricing decision
- Management review
Preparation of the Cost Proposal
- The importance of the request for proposals (RFP) instructions
- Requirements and limitations
- Relationship of cost proposal to technical and management proposals
- Requirement for reasonable and realistic costs
Market-Based Pricing - Price Analysis
- Sealed bidding
- Competitive negotiations - adequate price competition, established catalog or market prices and prices set by law or regulation
- Requirement for price analysis
- Price analysis techniques - primary, secondary and auxiliary
Cost-Based Pricing - Cost Analysis
- Requirements for cost analysis
- Truth in Negotiations Act regulations
- Cost principles
- Reasonableness
- Allocability
- Compliance with Cost Accounting Standards
- Compliance with FAR 31.20
- Compliance with contract terms
- Cost Accounting Standards
- Direct cost analysis
- Indirect cost analysis
- Profit policy and analysis - weighted guidelines
Truth in Negotiations Act
- Intent of the act
- Regulatory implementation
- Definition of cost or pricing data
- Requirements for submission and certification
- Exceptions and waivers
- Effect on the pricing of commercial items
- Remedies for defective cost or pricing data
Special Pricing Tasks
- Equitable adjustment for changes
- Termination settlements
- Other adjustments and claims
Sponsor Background:
In 1989, ESI and The George Washington University School of Business and Public Management initiated the Project Management Professional Development Program as a corporate training program for one of the world's leading telecommunications companies.As the demand for project management expertise increased, ESI began offering public courses.
To date, more than 250,000 students from 50 countries around the world have benefited from the courses. As a result, our Project Management Professional Development Program has achieved the distinction of being the world's most comprehensive education program for building project management knowledge and skills.
Discounts and Payment Policy
Receive 10 percent off your registration when you sign up for two or more classes or you register yourself and a friend for the same course at the same time. You must sign up for the courses at the same time and pay in advance. Course discounts do not apply toward The Project Advantage course, the PMP Exam Preparation course or any e-training course.
In case of a course cancellation, substitutions can be arranged. Double Deal discounts cannot be applied to any past classes and are not applicable to e-training courses, the PMP Exam Preparation course or The ProjectAdvantage.
Quote From Past Participants:
"Better to take the course and learn in a week what it would take years to stumble over on your own." - Associate Contract Administrator, ACS Government Solutions Group"I received an excellent foundation for contract pricing. The instructor provided good examples and answered all questions to our complete satisfaction." - Contract Appeals, U.S. Army Legal Services Agency
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