cost and pricing data | The Contracting Education Academy

The General Services Administration’s watchdog again raised concerns over plans to move ahead with a three-year Transactional Data Reporting (TDR) pilot program, at the expense of two other contract provisions it says helps federal buyers save money.

This is the case that GSA made for Transactional Data Reporting when it issued a proposed rule in 2015 to capture transactional data on procurements across all of its government-wide acquisition vehicles.

In comments on the GSA’s strategy to extend its TDR pilot for another year after its planned conclusion this December, the GSA Office of Inspector General said it remains concerned TDR could cripple the agency’s buying schedules, which include IT Schedule 70, because it has yet to produce useable pricing data. The comments were dated July 26 but publicly released this week.

GSA’s TDR pilot collects pricing data from vendor volunteers, including prices paid by government customers, for products and services sold under agency contracts. It hopes the data gathered could level out pricing for federal buyers. When it was launched, the GSA OIG characterized the pilot as “the most significant change to GSA’s Multiple Award Schedules Program in over 20 years.” However, it warned at the beginning of the pilot and again in recent comments that the effort had produced no significant measurable pricing data federal agencies could use.

Keep reading this article at: https://fcw.com/articles/2019/08/28/watchdog-warns-pricing-trial-rockwell.aspx

Defense procurement officials have taken a step toward cracking down on what they have called price gouging within the military spare parts market. They issued a new edict that requires DoD contracting officers to gather cost and pricing data when they enter into agreements with TransDigm Group.

The memo, signed on Friday by Kim Herrington, DoD’s acting director for Defense Pricing and Contracting, tells contracting officers they must “require” that TransDigm turn over uncertified cost data to support the prices the company is charging the government. The mandate applies to situations where TransDigm or its subsidiaries are the only makers of a particular part, a scenario that applies to the vast majority of the company’s business.

The order also tells contracting officers to treat many of their contracts for parts the company makes as non-competitive — even when two or more resellers are bidding to supply the same item.

“The definition of adequate price competition does not address the fact that a sole manufacturer (such as TransDigm) participating in a competition can effectively control the competition by its ability to establish the material pricing for all other offerors,” Herrington wrote. “In these situations, the department does not consider such rigged competitions to be adequate price competition, based on independently submitted offers.”

The memo is highly unusual in that it targets one particular company, rather than laying out a broadly-applicable policy.

It was prompted by a February 2019 DoD inspector general report which found that TransDigm was routinely earning “excess profits” in its Defense contracts. For 17 of the 47 parts in a sample auditors examined, they calculated the company’s profit margins at 1,000% or more, and deemed all but one of the parts to have been marked up to unreasonable levels.

Keep reading article at: https://federalnewsnetwork.com/defense-main/2019/06/new-dod-policy-aims-to-crack-down-on-alleged-price-gouging-by-transdigm/

Watchdog warns on GSA’s contracting data trial

The General Services Administration’s watchdog again raised concerns over plans to move ahead with a three-year Transactional Data Reporting (TDR) pilot program, at the expense of two other contract provisions it says helps federal buyers save money.

New DoD policy aims to crack down on alleged price gouging by TransDigm

Defense procurement officials have taken a step toward cracking down on what they have called price gouging within the military spare parts market. They issued a new edict that requires DoD contracting officers to gather cost and pricing data when they enter into agreements with TransDigm Group.

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