Contract Pricing and Pricing Fundamentals

Overview

Many federal contractors are wasting significant amounts of time and increasing audit risk and exposure by the improper use of price and cost analysis. Many contractors and Government oversight officials do not understand the true requirements contained in the Federal Acquisition Regulation (FAR) regarding the use of Price Analysis versus Cost Analysis. This results in significant time and expense preparing and justifying detailed cost estimates when the most basic price analysis tools and techniques, which require far less effort, are all that is required. This has been made even more challenging by clarifications made to the FAR in 2011 that actually encourage contracting officers to reach out and obtain cost details, even when they are not required.

This course will examine the principle phases of price and cost analysis - from the initial contract solicitation to the final contract award. We will cover methods for identifying, considering and understanding whether the ultimate price will require either cost analysis or price analysis. We will also cover relevant costs, tools and techniques associated with price analysis, key elements associated with cost proposal requirements including documentation of direct labor, material and subcontracts and the associated cost analysis and cost realism analysis. This foundational knowledge can help companies to provide the appropriate levels of data to customers and demand appropriate levels from vendors and subcontracts.

This course may also be eligible for the following credits through The Public Contracting Institute: 

• 6 CLEs
• 6 CLPs
• 7.2 CPEs

If CLE credits are needed, the request along with the jurisdiction must be received before the start of the training.

George Mason University Executive and Professional Education 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 addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Nashville, TN, 37219-2417.