Advanced Price Analysis in Government Contracts

Overview
Dates/Locations
Agenda
Experts
Accreditation
Travel

Overview

With the ever increasing pressure on federal government budgets, the emphasis on ensuring that prices paid for goods and services are “fair and reasonable” are at an all-time high. “Buyers” (both Government Contracting Officers as well as Prime Contractors) are under intense scrutiny to demonstrate that analytical techniques (Cost Analysis and Price Analysis) prescribed in the Federal Acquisition Regulation (FAR) for determining “fairness and reasonableness” are being performed appropriately and adequately. FAR describes ‘price analysis’ as “…the process of examining and evaluating a proposed price without evaluating its separate cost elements and proposed profit.” Price analysis techniques and procedures include the following:

Comparison of proposed prices received in response to a solicitation
Comparison of the proposed prices to historical prices paid for similar items
Use of parametric estimating methods/application of rough yardsticks
Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements
Comparison of proposed prices with independent Government cost estimates
Comparison of proposed prices with prices obtained through market research for the same or similar items
Analysis of data other than certified cost or pricing data (as defined at 2.101) provided by the offeror

Advanced Price Analysis focuses on these techniques and describes and demonstrates in detail the procedures required to accomplish these. Participants will learn not only the “why’s” and the “how to’s”, but will also gain insights on industry best practices. The course objective, simply stated, is to have participants obtain a working level understanding of Price Analysis through a thorough review and analysis of the regulations and illustrated through a variety of real world examples, scenarios and case studies.

Learning Objectives
After completing this course, you will be able to:

Demonstrate knowledge of a price analysis
Recognize fair and reasonable prices paid for goods and services
Compare and analyze price proposals of a solicitation
Determine price reasonableness based on government estimates
Analyze data through market research and comparable products or services

Who should attend:
Finance, Accounting, Contracts Personnel, Supply Chain and Acquisition Specialists with 5 or more years of experience in Cost and Price Analysis. Those who have taken the Cost & Price Analysis class at least 6 months prior.

Dates/Locations

No upcoming dates/locations at this time

Agenda

Day 1
9:00 AM - 4:00 PM

Day 2
9:00 AM - 12:00 PM

DAY ONE

• Price Analysis – When is it required?
• Price Analysis Policy and Regulations
• When to do Price Analysis
• Price Reasonableness vs. Realism
• Price vs. Cost analysis
• Requirements for Price Analysis
• Consequences for Failure to Perform Adequate Price Analysis
• Price Analysis Techniques
o Competition
o Market Research
o Historical prices
o Parametrics
o Published price lists, published market prices of commodities, indexes, discounts or rebates
o Independent Estimates
12:00-1:00 PM LUNCH BREAK
• Price Analysis Techniques - Continued
o Comparison with Independent Government Cost Estimates (IGCE’s)
o Market research
o Pricing information provided by offeror
o Other Than Certified Cost or Pricing Data
o Certified Cost or Pricing Data
• Price Analysis Tools
• Documentation
• Single/Sole Source Procurement
• Commercial Pricing and Market Based Pricing

• Subcontract Price Analysis
• Government Business System implications
o Estimating System Reviews
o Purchasing System Reviews
• Class Exercises
• Industry Best Practices and Current Trends
• Summary

Experts

Derek Shaw

Director, BDO

Derek Shaw is a Director in the Government Contractor Advisory Services practice and brings to BDO more than 27 years of Finance experience with focus on Government Finance & Compliance in the Aerospace & Defense sectors. This includes a broad range of Government contracting & com...

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Accreditation

See Individual Courses For Available Credits

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: www.nasbaregistry.org.

For more information regarding administrative policies such as refunds, cancellations and complaints, please contact Federal Publications Seminars at 888.494.3696.

CPE Hours

This program is eligible for: 9.50 (CPE) hours of credit

Program Level: N/A

Program Prerequisite: N/A

Advance Preparation: N/A

Method: N/A

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: 8.00 (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: 8.25 (60 minutes), (50 minutes)

Travel

No travel information is available at this time