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Who should attend:
This key course is essential for all contractors. It is designed for professionals with 1 or more years of experience with cost and price information. Attendees include accounting, finance, compliance, management, contracting personnel and anyone who must have a solid knowledge of cost and price analysis.

What you will learn: 
Government Contracting Officers are required to “purchase supplies and services from responsible sources at fair and reasonable prices”:

“(1) The contracting officer is responsible for evaluating the reasonableness of the offered prices. The analytical techniques and procedures described in this subsection may be used, singly or in combination with others, to ensure that the final price is fair and reasonable. The complexity and circumstances of each acquisition should determine the level of detail of the analysis required.

(2) Price analysis shall be used when certified cost or pricing data are not required

(3) Cost analysis shall be used to evaluate the reasonableness of individual cost elements when certified cost or pricing data are required. Price analysis should be used to verify that the overall price offered is fair and reasonable.”2

The CO is given the following additional guidance:

“Normally competition establishes price reasonableness. Therefore, when contracting on a firm fixed-price or fixed-price with economic price adjustment basis, comparison of the proposed prices will usually satisfy the requirement to perform price analysis, and a cost analysis need not be performed.”3

Government Contractors, when purchasing supplies or services under a government cost reimbursement contract, are held to a similar standard.4 Furthermore, when bidding on any contract for which “certified cost or pricing data” are required, contractors are instructed to: “Conduct price analyses of all subcontractor proposals. Conduct cost analyses for all subcontracts when certified cost or pricing data are submitted by the subcontractor. Include these analyses as part of your own certified cost or pricing data submissions for subcontracts expected to exceed the appropriate threshold in FAR 15.403-4.”5

Cost Analysis and Price Analysis – two critical and essential tools used in assessing fairness and reasonableness of proposed prices – must be understood by buyers and sellers in all government contracting situations - government contracting officers, and contractors alike,

    1 FAR 15.402 - Pricing Policy
    2 FAR 15.404-1(a) – Proposal Analysis Techniques
    3 FAR 15.305 – Proposal Evaluation
    4 FAR 44 – Subcontracting Policies and Procedures
    5 FAR Table 15-2 – Instructions for Submitting Cost/Price Proposals When Cost or Pricing Data Are Required particularly when the              contractor fills both the seller’s and buyer’s shoes in performing on a government contract.

Taught in a straight forward manner from the perspective of the Buyer, Cost and Price Analysis in Government Contracting presents a thorough discussion of these concepts in practical and actionable terms. Participants will learn not only the “why’s” but the “how to’s”. The course objective, simply stated, is to have participants obtain a working level understanding of what the dual techniques of Cost Analysis and Price Analysis are, when they are to be used, and how to accomplish them. This objective is achieved through a thorough review and analysis of the regulations and illustrated through a variety of real world examples, scenarios and case studies.

Learning Objectives: 

  • Recognize the contracting officer’s responsibilities in acquisition of products and services at fair and reasonable prices
  • Demonstrate the ability to use tools to determine reasonableness 
  • Ability to define cost analysis and price analysis
  • Correctly define certified price or cost data
  • Determine and establish adequate price competition
  • Correctly use analytical techniques in determination of cost and price data
  • Cite the correct FAR and DFAR related clauses
  • Basic understanding of cost principles and CAS
  • Define and examine defective pricing challenges
No upcoming dates/locations at this time
8:00 AM - 3:00 PM
La Jolla, Hilton Head and Las Vegas September Weeklong Conference Locations
9:00 AM - 4:00 PM
All other locations

NOTE: The start and end times for the La Jolla, CA is earlier. Classes begin at 8:00 AM (breakfast/registration at 7 AM) and end at 3:00 PM.

DAY 1:  

1. The Regulatory Framework
a. Truth In Negotiations Act
b. Competition In Contracting Act

2. Cost Analysis and Price Analysis
a. Definitions
b. Comparison and contrast

3. Certified Cost or Pricing Data
a. What is it?
b. When is it required?
c. Exemptions from Certified Cost or Pricing Data requirement
i. Adequate price competition
ii. Prices set by law or regulation
iii. Waiver
iv. Commercial Items
v. Other

4. Adequate Price Competition
a. Offeror responsibility
b. Best value
c. Reasonableness

5. Data Other Than Certified Cost or Pricing Data

6. Contingencies

7. Price Analysis Techniques
a. Comparison of Proposed Prices
b. Historical Price Comparison
c. Parametric Estimating
d. Comparison to Published Price Lists
e. Independent Estimates

8. Analytical Techniques for Cost and Price Analysis
a. Statistical analysis
b. Price Indices
c. Cost-Profit-Volume Analysis
d. Improvement Curve Analysis
e. Regression Analysis

9. Cost Estimating Methods and Requirements
a. FAR 15.407-5
b. DFARS 15.407-5-70

10. Prime Contractor’s Requirement for Submission of Subcontractor’s Certified Cost or Pricing Data

DAY 2:
1. Cost Analysis Techniques
a. Evaluation of Cost or Pricing Data and verification of cost elements
b. Comparison
c. Evaluation of current practices on future costs
d. Make-Buy analysis
e. Compliance with FAR Cost Principles and CAS
f. Verification that Cost or Pricing Data are current, accurate and complete

2. Profit
a. FAR Subpart 15.404-4
b. DoD Weighted Guidelines approach – DD Form 1547

3. Cost Of Money
a. FAR 31.205-10
b. CAS 414

4. Cost Realism Analysis

5. Overview – Contract Cost Principles

6. Overview – Cost Accounting Standards

7. Defective Pricing
a. Risk Mitigation Strategies 
  • Ki Capitano
    Ki Capitano is a consultant with Capitano Consulting providing consultation, advice, assistance, and training on government contract financial and other regulatory compliance matters.

    Ki began his career in government contracting in 1976, working as a contract auditor for the Defense Contra...
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Certificates of Completion are provided to all seminar participants who attend Federal Publications Seminars courses following the event, upon request.
CPE: Continuing Professional Education
Field of Study: Specialized Knowledge
Delivery Method: Group-Live Classroom
Federal Publications Seminars is affiliated with West Professional Development and 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 submitted to the National Registry of CPE Sponsors through its website:
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CPE Hours
This program is eligible for: 13.0 (CPE) hours of credit
Program Level: Beginner
Program Prerequisite: None
Advance Preparation: None
Method: Group-Live
CLP: Continuous Learning Points
Approved for CLP by Defense Acquisition University
Defense Acquisition Workforce members must acquire 80 Continuous Learning Points (CLP) every two years from the date of entry into the acquisition workforce for as long as the member remains in an acquisition position per DoD Instruction 5000.66. We will provide you with documentation of points awarded for completing the event.
CLP Hours
This program is eligible for: 11.0 (CLP) hours of credit
CLE: Continuing Legal Education
States have widely varying regulations regarding MCLE credit. LegalEdcenter is an approved provider in AL, AK, AR, CA, GA, IL, ME, MO, MS, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, PA, RI, SC, TN, TX, UT, VA, VI, VT, WA, WI, and WV. Credit may be applied for in other jurisdictions on request and in accordance with state MCLE rules.
Please note that because some states are changing their policy on CLE reporting, you will need to fill out the request for credit from Federal Publications Seminars within 10 business days, or we may not be able to issue credits for the program.
CLE Hours
This program is eligible for: 11.0 (60 minutes), 13.0 (50 minutes)
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  • 100
    Basic or fundamental subject matter is covered. Courses are geared to general knowledge or can be taken as a refresher.
  • 200
    Specific topics or issues within a topic area are covered. Students should be familiar with terms of art and general concepts concerning the course topic.
  • 300
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