An information-packed two-day program for Government, construction, and commercial contract professionals on how to successfully price and prove supply, service and construction contract claims
The program focuses on techniques for preparing and calculating
claims and on how to transform claim elements into recoverable
figures. This involves carefully pricing the tangibles and intangibles
— labor, material, equipment, overhead, profit, etc. — and, in many
claims (especially those related to construction), loss of efficiency. The
most costly losses a contractor can incur on a project frequently result
from reduced labor and equipment productivity, where delay and
disruption to contract work impacts productivity — which then leads
to loss of efficiency claims.
Furthermore, in its entirety, the course provide you with skills to:
• Identify all of the cost factors that can be and should be included in
claims under Government contracts and construction contracts.
• Compute the proper dollar amounts assignable to those factors.
• Present your claim in clear, indisputable terms.
• Understand and successfully manage the necessary elements of a
claim’s proof.
• Price equitable adjustments, direct costs, loss of efficiency, indirect
costs, and more.
• Successfully manage the special issues that can arise when pricing
and proving claims that arise from delays, contract breaches, and
terminations.
The course will be presented by a highly distinguished Course Faculty
— two experienced practitioners whose credentials are detailed below.
In addition to highly insightful lectures and classroom discussions,
you will also receive a comprehensive Manual of written materials
— for your use during the course and for concise reference after the
course has been completed.
We look forward to your participation in this highly valuable, skillenhancing
program.
Government Contract Claims and Pricing of Claims Course Curriculum
1. A PRICING ROADMAP
- A. Pricing Objectives
- B. Types of Claims
1. Changes
2. Termination for convenience
3. Termination for default
4. Suspension of work
5. Breach of contract - C. Types of Costs to Recover
1. Direct and indirect
2. Fixed and variable
3. Facilities capital cost of money
4. Lost opportunity - D. Pricing Concepts
1. Cost identification
2. Cost principles
3. Cost accounting standards
4. Cost allowability
5. Cost allocation
2. PRICING EQUITABLE ADJUSTMENTS
- A. Additive Changes
- B. Deductive Changes
- C. Substitutive Changes
- D. Application of The Bruce Rule
- E. Indirect Cost Entitlements
- F. Loss Contracts
- G. Increased Costs of Unchanged Work
- H. Methods of Pricing
1. Actual costs
2. Estimates
3. Jury verdict
4. “Total cost” approach
3. PRICING DIRECT COSTS
- A. Direct Costs Defined
- B. Labor Costs
1. Direct labor and payroll
2. Idle direct labor
3. Learning curves
4. Reverse learning curves
5. Labor escalation
C. Materials
1. LIFO, FIFO and other inventory
pricing
2. Inter-divisional transfers
3. Material overhead
4. Adjustments - D. Equipment
1. Depreciation
2. ACRS
3. Idle facilities
4. Special tooling
5. Special test equipment
6. Depreciating construction
equipment
7. Idle construction equipment
4. LOSS OF EFFICIENCY CLAIMS
- A. Types of Claims
1. Acceleration
2. Overtime
3. Multiple crews
4. Manpower availability
5. Restricted access
6. Stacking of trades
7. Working out of sequence
8. Ripple effect
9. Increased storage
10. Increased material handling - B. Understanding Productivity
- C. Causes of Loss of Efficiency
- D. Legal Issues Impacting Liability
- E. Using Learning Curves
1. Using them
2. Reverse learning curves - F. Extended Overhead
- G. Cause and Effect Analyses
- H. Special Calculations
- I. Calculating Losses
1. Comparative work
2. Similar contracts
3. Project productivity studies
4. Industry productivity standards
5. Industry manuals
6. Estimated labor costs
7. Expert analyses
8. Bid comparisons
9. Manloading analyses
10. Productivity per labor hour
11. Return per labor hour
12. Escalation
5. PRICING INDIRECT COSTS
- A. Indirect Costs Defined
- B. Allocation
- C. Cost Accounting Consistency
- D. Cost Accounting Standards
- E. Allocating Home Office Expenses
- F. Allocating G&A Costs
6. DELAY, ACCELERATION and
EXTENDED OVERHEAD CLAIMS
- A. Identifying the Delay
- B. Measuring the Delay
- C. Use of PERT and CPM
- D. Concurrent Delays
- E. Acceleration
- F. Extended or Unabsorbed Overhead
1. The Eichleay formula
2. Modified Eichleay - G. Impact and Ripple Effect
7. BREACH CLAIMS
- A. Basic Principles
- B. Methods of Computing Damage
1. Expectancy
2. Reliance interest
3. Restitution - C. Measuring the Damages
1. Market value
2. Resale and cover
3. Contract price less saved costs - D. Consequential Damages
1. Causal connection
2. Foreseeability - E. Duty to Mitigate
- F. Damages in Sale of Goods Contracts
- G. Damages in Construction Contracts
8. TERMINATION FOR CONVENIENCE
CLAIMS
- A. Cost Recovery
1. Common items
2. Special tooling and equipment
3. Starting load costs
4. Subcontract costs
5. Costs after termination
6. Unabsorbed overhead - B. Measuring Profit
- C. Partial Terminations
- D. Settlement Expenses
9. TERMINATION FOR DEFAULT
CLAIMS
- A. Termination for Convenience
Conversion - B. Contractor’s Liability
10. PROFIT, INTEREST and
ATTORNEYS’ FEES
- A. Profit Defined
1. Added work
2. Delays - B. Measuring Profits
1. Weighted guidelines
2. Historical data
3. Legal limitations - C. Interest on Government Claims
1. Prompt Payment Act
2. Contract Disputes Act - D. Interest on Commercial Claims
- E. Attorneys’ Fees
11. PACKAGING AND PRESENTING
THE CLAIM
- A. Organization
- B. The Narrative Portion
- C. Calculations
- D. Charts and Attachments
- E. Certification Requirements
- F. Successful Presentation Techniques
and Strategies - D. Who Should Prepare
- E. The Claim Team
The Course Faculty
John Person A Founding Partner in the Washington D.C. law firm of Person & Craver,
LLP • Special expertise in the litigation and resolution of disputes in the areas of Government contracting, construction contracting, and environmental remediation; his practice includes a large number of contractual, privatization, and regulatory matters regarding Government contracting programs • Experienced in a wide variety of judicial and administrative forums ranging from Federal District Court, to the GAO and the U.S. Court of Federal Claims, to more specialized proceedings • Served as a practicing engineer for a number of years, holding various positions in project engineering, scheduling, and construction management • A registered professional engineer; member of the National Panel of Construction Arbitrators for the American Arbitration Association and a member of numerous honorary, technical and legal societies and organizations • Lectures frequently on contracting matters and is the author of numerous articles on procurement issues • Bachelors degree and Masters in Civil Engineering from the University of Michigan; Juris Doctor degree from the University of Michigan Law School
Darrell J. Oyer Certified Public Accountant, with extensive experience in the application and interpretation of Government costs matters, including the Cost Accounting Standards, the FAR, FAR supplements, and Financial Accounting Standards Board matters • Former partner with Deloitte & Touche; served in numerous capacities with the Defense Contract Audit Agency, including service as a field staff auditor, program manager, Assistant Regional Director, and as Assistant Director, DCAA, in the areas of Operations and Professional Development, Resources, and Policy and Plans • Fellow of the National Contract Management Association; Chairman of the National Defense Industrial Association’s Contract Finance Subcommittee; former Chairman of the Institute of Management Accountants’ Cost Accounting Standards Subcommittee • Author of numerous articles on contract cost matters • Bachelor of Science degree from the University of Illinois; Master of Business Administration degree from American University.
Michael E. Steen, Certified Public Accountant, is a Senior Managing Consultant in Beason & Nalley’s Government Contract Consulting Group. Prior to joining Beason & Nalley in 2007, Mike was employed with DCAA and has over 30 years experience which will provide our clients with a high degree of technical competence. As a senior executive with DCAA over the past several years, Mike was responsible for the management of audits of approximately $25B annually and management of agency resources approximating 800 employees. Mike was also involved in conducting or managing a variety of compliance audits, to include cost proposals, internal controls and related systems, Cost Accounting Standards, claims, defective pricing, and special programs. He was also actively involved in contract disputes and litigation, and has prepared and presented various lectures and seminars to DCAA staff and business community leaders. Mike also served as a member of the Executive Steering Committee for DCAA during his tenure as a Regional Director.