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June 15, 2016 By AMK

How DoD is bettering its commercial pricing practices

The Defense Department (DoD) is spending a lot of time trying to figure out how it can speed up its acquisition process while saving money too.

DCMAOne method DoD is constantly working on is how it buys commercial items. It spends about $60 billion a year on items that are sold in the private sector.

But, determining what is considered a commercial item and how much that commercial item should cost can get tricky.

That’s where the Defense Contract Management Agency’s new Cost and Pricing Centers come into play.

First started as a pilot program back in 2013, the Congressionally mandated centers are set to be fully staffed this June.

Keep reading this article at: http://federalnewsradio.com/acquisition-policy/2016/05/dod-bettering-commercial-pricing-practices/

Filed Under: Government Contracting News Tagged With: acquisition strategy, commercial item, commercial products, cost and pricing, Cost and Pricing Center, DCMA, DoD, pricing strategy

February 1, 2016 By AMK

Cost and price analysis takes center stage in March

The Contracting Education Academy at Georgia Tech is offering a course spotlighting the Fundamentals of Cost & Price Analysis in government contracting.

To see details or to register, click here.  The 10-day course is scheduled for Mar. 14 through 25, 2016.

The Academy’s comprehensive course begins with an in-depth review of the market research process, and provides instruction to help students understand and analyze contractor pricing strategies.

Attendees learn to accomplish cost-volume-profit analysis, calculate contribution margin estimates, and develop cost estimating relationships in order to accomplish an effective price analysis pursuant to FAR Subpart 15.4.

After learning the basic elements of price and cost analysis, students will build and defend a pre-negotiation objective, including a minimum and maximum pricing objective with a weighted guidelines assessment.

Cost and price analysis is part of a plan of total market surveillance designed to understand the relationship of market forces on the acquisition of technology, products and services.
Cost and price analysis is part of a plan of total market surveillance designed to understand the relationship of market forces on the Government’s acquisition of technology, products and services.

This course is ideal for new hires in the contracting career field.   In addition, for government contractors, this course provides invaluable insights into the government contracting decision-making process.

Student performance is assessed by graded exams on math fundamentals and applied course material as well as an exercise for student participation and completion of negotiations.

CON 170 – Fundamentals of Cost & Price Analysis is Defense Acquisition University-equivalent training that satisfies the FAC-C and DAWIA certification programs. For more information or to register, please visit: http://www.pe.gatech.edu/courses/con-170-fundamentals-cost-and-price-analysis

Filed Under: Academy News Tagged With: CON 170, cost and price, cost and price analysis, market research, math fundamentals, pricing objective, pricing strategy

April 20, 2015 By AMK

GSA’s proposed pricing data rule questioned

A rule proposed by the General Services Administration to gather pricing data from contractors is part of the agency’s effort to boost contract efficiencies and agencies’ buying power. But contractors are concerned that it could be costly and compromise their pricing information.

GSA logoIn March, GSA proposed a change to its acquisition regulations that would require vendors to report transactional data from orders and prices paid by ordering activities, including orders under Federal Supply Schedule contracts, non-FSS contract vehicles, governmentwide acquisition contracts, and indefinite-delivery, indefinite-quantity contracts.

At a daylong public meeting on the proposed rule at GSA’s Washington headquarters on April 17, agency officials said the proposed change would help address several challenges GSA faces with multiplying contracts, price differences among contracting vehicles, general transparency and rules that in some cases were put in place before the Internet took hold.

Kevin Youel-Page, assistant commissioner of GSA’s Integrated Award Environment, said the information gathered under the proposed rule would help give federal customers a system that better fits their needs.

“The federal government is the biggest buyer on planet Earth,” he told the audience of contractors and federal employees gathered to discuss the proposal. “We need to act like it.”

Anne Rung, administrator of the Office of Federal Procurement Policy, reminded the audience that the federal procurement process “is plagued by complexity and duplication.” The proposed rule would bolster OFPP’s “new vision” for federal buying, including the expansion of data-driven procurement practices and category management programs across the entire federal government, she added.

Keep reading this article at: http://fcw.com/articles/2015/04/17/transactional-data.aspx

Filed Under: Government Contracting News Tagged With: category management, data-driven procurement, FSS, GSA, GSA Schedule, GWAC, IDIQ, MAS, OFPP, pricing strategy, schedule, Schedules

March 27, 2014 By AMK

Acquisition infrastructure takes a village

Problems in government contracting today include complex issues of pricing, staffing, and outcomes. Solutions are often arrived at quickly; new legislation or regulation, adopting commercial practices, adding or reducing staff and oversight. Wherever we lie on the oversight or streamlining continuum, we always seem to want to get to the other side. Short term actions result in winners and losers, but long-term results don’t significantly change.

Government agencies are now largely dependent upon contract support to meet their mission. Yet, their organizational structure doesn’t reflect this new dependence. A robust contracting infrastructure in both the public and private sectors is necessary and must include the knowledge and experience embodied in professional competencies in program management, system engineering, finance, quality assurance, property, logistics, information technology, etc. to positively impact program outcomes and reflect organizational leadership and culture. These core competencies are necessary to plan and execute a mission that reliant on contracted support of products and services. GAO’s acquisition framework includes an analysis of organizational structure and placement when reviewing risk factors for agency success.

Keep reading this article at: http://www.federaltimes.com/article/20140303/BLG06/303030008/Acquisition-infrastructure-takes-village 

Filed Under: Government Contracting News Tagged With: acquisition reform, acquisition strategy, GAO, pricing strategy

August 28, 2013 By AMK

Cost and price course scheduled in October

The Contracting Education Academy at Georgia Tech is offering a course focusing on the Fundamentals of Cost & Price Analysis in government contracting on October 14-25, 2013.

This comprehensive, two-week course begins with an in-depth review of the market research process, and provides instruction to help students understand and analyze contractor pricing strategies.

Attendees will learn to accomplish cost-volume-profit analysis, calculate contribution margin estimates, and develop cost estimating relationships in order to accomplish an effective price analysis pursuant to FAR Subpart 15.4.

After learning the basic elements of price and cost analysis, students will build and defend a pre-negotiation objective, including a minimum and maximum pricing objective with a weighted guidelines assessment. After successfully defending their pricing objectives, the students will practice face-to-face negotiations.

This course is targeted toward new hires to the contracting career field.   For government contractors, this course also provides valuable insights into the government contracting decision-making process.

Student performance will be assessed by graded exams on math fundamentals and applied course material as well as an exercise for student participation and completion of negotiations.

CON 170 – Fundamentals of Cost & Price Analysis is Defense Acquisition University-equivalent training that satisfies the FAC-C and DAWIA certification programs.   In addition, 7.35 CEUs are granted for successful course completion.

For more information or to register, please visit: http://www.pe.gatech.edu/courses/con-170-fundamentals-cost-and-price-analysis

Filed Under: Academy News Tagged With: CON 170, Contracting Academy, cost and price analaysis, cost estimate, DAU, DAWIA, FAC-C, Georgia Tech, market research, pricing strategy

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