Georgia Tech Procurement Assistance Center

GTPAC hosts cost/price proposal workshop

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One of the most important skills government contractors must learn is how to prepare a quality cost/price proposal.  Recently, on April 24, 2019, the Georgia Tech Procurement Assistance Center (“GTPAC”), with support provided by The Contracting Education Academy at Georgia Tech, held a free cost/price proposal workshop at the Georgia Tech Global Learning Center in midtown Atlanta, GA.  Attendees at the day-long workshop were provided detailed instruction on cost estimating, cost/price proposal preparation, and how to properly analyze their direct costs, indirect costs, profit, and other factors when determining a competitive cost/price.

“I am extremely happy with the event, and I thought the contractors in attendance asked some fantastic questions about pricing,” said Andrew Smith, Program Manager of GTPAC, he continued, “There are a lot of resources available on how to put together the technical proposal, but a lot fewer resources available, that focus specifically on how to put together a great price or cost proposal.  I think this workshop provides that missing piece.”

The cost/price proposal slideshow materials from the workshop are provided below at no cost.  Permission is granted to other Procurement Technical Assistance Centers (“PTACs”) to use and modify the presentation in conjunction with the delivery of training and other services to PTAC clients.  

“I would encourage government contractors to learn from the materials, and other PTACs to use or incorporate the materials in their own presentations to the business community,” said Smith, he continued, “The slideshow is detailed and high quality and a great resource to take advantage of.”

To download the presentation, click the following links:

Cost and Price Proposal Handout (PDF)

Cost and Price Proposal Handout (PowerPoint)

To view cost/price proposal on-demand webinar training, see the video below:

Renewed focus on contractor business system reviews

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According to a recent U.S. Government Accountability Office (GAO) report, the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA) have taken certain steps to improve the contractor business system (CBS) review process and are forecasting that CBS reviews will increase significantly over the next four years. Contractor business systems include a contractor’s accounting, earned value management, estimating, purchasing, material management, and property management systems.

These systems require contractors to maintain internal controls that, as GAO noted, “act as the first line of defense against fraud, waste and abuse of federal funding.” Given their importance, the renewed focus on ensuring CBS reviews are conducted in a timely and consistent manner is not surprising, and contractors should prepare for a new wave of audit activity.

Past Challenges to Completing CBS Reviews

In its report, GAO identified persistent challenges that have prevented DCAA and DCMA from performing consistent and timely CBS reviews. One key factor for DCAA is its focus on eliminating the backlog of incurred cost audits, which determine whether contractor costs are allowable prior to closing out the contract. GAO found that as a result of prioritizing incurred cost audits, Contracting Officers maintained CBS determinations as adequate even though the systems had not been audited in many years. GAO further found that lacking a mechanism to track CBS audits, DCMA and DCAA did not always comply with requirements to report CBS deficiencies or did not report the deficiencies within required timeframes.

Keep reading this article at: https://governmentcontractsnavigator.com/2019/03/21/renewed-focus-on-contractor-business-system-reviews/

GTPAC to host Cost/Price Proposal Workshop on April 24th

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One of the most important skills government contractors must learn is how to prepare a quality cost/price proposal, and how to analyze their cost/price competitiveness through market research.  In order to help Georgia businesses learn this skill, the Georgia Tech Procurement Assistance Center (“GTPAC”), with support from The Contracting Education Academy at Georgia Tech will be hosting a day-long workshop to provide instruction to businesses on cost/price proposal preparation and cost/price analysis.  Attendees will receive training and materials on topics such as: cost estimating, direct and indirect costs, cost realism and how to do price related market research, among others.

Date:  4/24/2019

Time:  9:00 AM to 3:00 PM (EDT)

Location:  The Global Learning Center, 84 5th Street NW, Atlanta, Georgia 30308

Presenters:  Alexis Kirksey, Nancy Cleveland, Andrew Smith

Admission is free, but pre-registration is required as seating is limited. 

Registration:  Go to https://gtpac.ecenterdirect.com/events/8683 and click “Sign Up”

If you have any questions, call Alexis Kirksey at (404) 894-6109

Pentagon auditors advised to better monitor contractor business systems

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The Defense Department’s management and auditing sub-agencies need to clarify their roles and improve the timeliness of their examinations of contractor accounting, estimating and purchasing systems, a watchdog found.

“DoD currently lacks a mechanism based on relevant and reliable information, such as the number of [contractor business system] reviews that are outstanding, the risk level assigned to those systems, and the resources available to conduct such reviews,” the Government Accountability Office wrote in a report released on February 8th.

Citing directives from Congress over the past decade, GAO reviewed data from the Defense Contract Management Agency and the Defense Contract Audit Agency and found that the DCAA, for example, conducted few business system audits in the past six years, due, in part, to the need for it to reduce its backlog on completing incurred cost audits.

Keep reading this article at: https://www.govexec.com/defense/2019/02/pentagon-auditors-advised-better-monitor-contractor-business-systems/154758/

Beware of these common construction estimating mistakes

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Completing projects within budget is a constant challenge facing the construction industry.

In the past three years, only 31 percent of all projects came within 10 percent of their budgets.

To top it off, 78 percent of engineering and construction companies believe project risks are rising. Suffice it to say, there is room for improvement.

Here are five construction estimating mistakes you should be aware of and best practices to put in place to avoid becoming their next victim (registration required): https://content.industrydive.com/gordian-cd-infographic-avoidable-construction-estimating-mistakes/

 

GAO: ‘Mechanical’ cost realism evaluation was improper

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An agency’s cost realism evaluation was improper because the agency “mechanically” compared an offeror’s proposed staffing to an undisclosed government estimate.

In a recent bid protest decision, the GAO held that it was improper for the agency to apply its own estimates for labor hours and costs without considering the protester’s unique technical approach.

The GAO’s decision in CFS-KBR Marianas Support Services, LLC; Fluor Federal Solutions LLC, B-410586 et al. (Jan. 2, 2015) involved a Navy procurement for base operations support services.  The solicitation contemplated the award of a cost-reimbursement contract, which was to be awarded on a “best value” basis.  Among the evaluation factors, the Navy was to consider offerors’ proposed staffing and resources.

Keep reading this article at: http://smallgovcon.com/gaobidprotests/gao-mechanical-cost-realism-evaluation-was-improper/

Tech’s Contracting Academy to teach cost & price course in October

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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 invaluable 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

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