Cost-Reimbursement Contracting with the Federal Government

With full coverage of the cost-reimbursement contracting process, including:

The purpose and nature of cost-reimbursement contracting
Types of cost-reimbursement contracts
Procurement techniques for cost-reimbursement contracts
Evaluating proposals and negotiating cost and fee
Contract administration issues related to cost reimbursement contracts
Overview of special cost principles and Cost Accounting Standards
Audits and payments
Avoidance of contract disputes

An important difference between contracting with the Government and private contracting is the Federal Government's widespread use of cost-reimbursement contracting vehicles. Cost-reimbursement contracts allow the parties to undertake projects that involve a substantial amount of technical and financial uncertainty and accord them greater flexibility during performance of the work than is possible under a fixed-price type contract.

At the same time, the Government has established elaborate procedures for awarding and administering cost-reimbursement contracts, including detailed cost principles relating to the allowability and allocability of performance costs. Anyone involved in the award or administration of a cost-reimbursement contract must keep up with these requirements. Failure to comply with these rules and procedures, which are constantly changing, can be costly and result in problems for both private industry and the Government.

No matter how keen your senses of awareness, or how advanced your level of knowledge of cost-reimbursement contracting, this is a subject about which you can never know enough. This course is designed for both those new to cost-reimbursement contracting, as well as experienced contracting professionals.

To assure understanding, maximum provision has been made for questioning by the audience. Toward that end the course faculty will (a) deliver information-packed lectures and (b) answer your questions-concentrating on particular aspects of the subjects which are of interest to you. Our purpose: To make certain that you learn the rules and procedures and know what must be done to comply with them in the award and administration of cost-reimbursement contracts.

Cost-Reimbursement Contracting with the Federal Government Course Curriculum

PURPOSE AND NATURE OF COST-REIMBURSEMENT CONTRACTING
1. Allocation of Risk
2. Choosing between fixed-price and cost-reimbursement contracts
3. Statutory guidance/restrictions
4. The role of the parties in cost-reimbursement contracting
TYPES OF COST-REIMBURSEMENT CONTRACTS
1. Completion vs. term form
2. Variable quantity arrangements
3. Cost-Plus-Fixed Fee contracts
4. Cost-Plus-Incentive Fee contracts
5. Cost-Plus-Award Fee contracts
6. Combined CPAF/CPIF contracts
7. Cost-No-Fee contracts
8. Cost-Sharing contracts
9. Indefinite-Delivery contracts
PLANNING COST-REIMBURSEMENT ACQUISITIONS
1. Acquisition planning
2. Determining and drafting the scope of work
3. Market research
4. Choosing the most effective acquisition strategy
5. The source selection strategy and relationship between cost and fee to non-cost evaluation factors
SOLICITING AND SUBMITTING PROPOSALS
1. The organization and content of a Request For Proposal
2. Preparation and submission of offerors' proposals
3. Cost realism information
4. The use of broad agency announcements
EVALUATING PROPOSALS
1. Communications to facilitate evaluation
2. The evaluation process and specific evaluation factors
3. Conducting the cost realism analysis
4. The need to document the results
5. Preparation and submission of offerors' proposals
CONDUCTING NEGOTIATIONS AND AWARD
1. Establishing the competitive range
2. The purpose of negotiations
3. Source selection and award
NEGOTIATING COST AND FEE
1. Government's analysis and negotiation of cost
2. Cost analysis techniques
3. Negotiation of fee using ghe FAR's structured approach and other techniques
4. Negotiation techniques and documentation
COST AND ACCOUNTING RULES
1. The FAR's Cost Principles
2. Agency modification to the Cost Principles
3. The Cost Accounting Standards and their applicability to cost-reimbursement contracts
4. Administration of CAS-covered contracts and subcontracts
GENERAL STANDARDS OF LIABILITY UNDER COST-REIMBURSEMENT CONTRACTS
1. Defining incurred costs and their allowability
2. Determining Reasonableness
3. Allocability of direct and indirect costs
4. Overview of special cost items
CONTRACT ADMINISTRATION
1. The role and effect of the Limitation of Cost and Limitation of Fee clauses
2. Changes and technical direction and their effect on the contractor's fee
3. Delays
4. Inspection and correction of defects
5. Terminations under cost-reimbursement contracts
6. Subcontracting issues
7. Risk of loss and third party liability
AUDIT AND PAYMENT
1. Purpose and objectives
2. Audit organizations
3. Types of audits
4. Billing procedures and legal status of payments under cost-reimbursement contracts
5. Withholding and set-off
DISPUTES AND REMEDIES UNDER COST-REIMBURSEMENT CONTRACTS
1. Claims relating to cost-reimbursement contracts
2. Government remedies for overpayment and disallowance of incurred costs
3. Penalties for unallowable costs in final indirect cost rate proposals

The Course Faculty

Ralph C. Nash, Jr. Nationally recognized as one of the leading and most respected authorities in Government procurement, Professor Nash taught at the George Washington University Law School from 1960 to 1993, retiring to become Professor Emeritus. In 1960, he founded the University's Government Contracts Program and served as its Director from 1960 to 1966 and from 1979 to 1984. In addition to consulting for Government agencies, private corporations, industrial organizations and law firms on procurement matters, Professor Nash continues to educate the contracting community through programs sponsored by educational institutions, professional societies and professional organizations. He received an A.B. from Princeton University and a J.D. from George Washington University.

Terry L. Albertson is a partner in the Washington, D.C. law firm of Crowell & Moring LLP, specializing in Government procurement law. Mr. Albertson is active in a number of trade and professional organizations. For several years, he served as Chairman of the Committee on Accounting and Cost and Pricing of the Public Contract Law Section of the American Bar Association. A member of The Government Contractor Advisory Broad, he has written and lectured frequently on Government procurement issues, with special emphasis on cost allowability issues, multiple award Federal Supply Schedule contracts, and issues related to fraud, debarment, and suspension. He received a Bachelor's degree from Georgetown University, magna cum laude, and Master's degree from Yale University, and a law degree from Harvard Law School, cum laude,. He is a member of the Bars of State of Maryland and the District of Columbia.