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)

Scrapped: $24M plan to replace refrigerators on Air Force One

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The U.S. Air Force has scrapped a $24 million plan to buy new refrigerators for its presidential jets, according to Pentagon documents released Monday by Rep. Joe Coutrney.

“The Air Force, working with the White House Military Office, recently reviewed the investment for the VC-25A chiller replacement and jointly decided to terminate the effort,” Air Force Secretary Heather Wilson said in a May 29 letter to the Connecticut Democrat. The VC-25A is the Air Force designation for the two Boeing 747s that take the callsign Air Force One when the president is aboard.

In December, Wilson’s service gave Boeing a contract to swap out the VC-25As’ aging chillers, the large and highly customized refrigerators that hold an extra-large supply of food for the U.S.president and staff. Defense One first reported the deal. On Feb. 8, Courtney expressed his concerns in a letter to Wilson.

Keep reading this article at: https://www.nextgov.com/cio-briefing/2018/06/scrapped-24m-plan-replace-refrigerators-air-force-one/148729/

GSA invites industry comment by Jan. 9th on upcoming e-commerce portals

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In an effort to create a new online market for government contracts, the General Services Administration (“GSA”) has invited industry to comment on the development and design of e-commerce portals for commercial procurements.

GSA’s request for comments was published on December 15, 2017.  This comment period provides a valuable opportunity for contractors to advise GSA on what regulations and business practices should apply to e-commerce portals, which will likely serve as a platform for billions of dollars’ worth of government business.

GSA’s announcement comes only days after the signing of the National Defense Authorization Act for FY 2018 (“2018 NDAA” or the “Act”), which included an overhaul of the commercial item procurement system and directed GSA to develop e-commerce systems.  Pursuant to Section 846(a) of the Act, GSA must establish e-commerce portals “for the purposes of enhancing competition, expediting procurement, enabling market research, and ensuring reasonable pricing of commercial products.”  2018 NDAA § 846(a).  GSA has 90 days to implement “phase I” of Section 846, under which GSA must develop a plan and schedule for creating e-commerce portals.  2018 NDAA § 846(c)(1).

Keep reading this article at: https://www.insidegovernmentcontracts.com/2017/12/7399/

DoD reopens comment period on pricing data rule

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The public comment period on a contract pricing rule which would amend the Defense Federal Acquisition Regulation Supplement (DFARS) has been extended to November 13, 2015.

DFARSThe proposed DFARS change is necessary in order to implement Section 831 of the 2013 National Defense Authorization Act (NDAA), which requires the issuance of guidance on the use of the authority to require the submission of other than cost or pricing data, 80 Fed. Reg. 61333.

The 2013 NDAA mandates that offerors submitting proposals for negotiated procurements provide certified cost or pricing data under certain circumstances if the estimated value of the procurement is above a certain dollar threshold. For other types of procurements (e.g., commercial-item acquisitions) the law requires only that an offeror provide “data other than certified cost or pricing data to the extent necessary to determine the reasonableness of the price” (10 U.S.C. 2306a(d)(1)).   Section 831 of the NDAA requires the issuance of guidance on the use of the authority to require the submission of other than cost or pricing data.

The new rule proposes to amend the DFARS as follows:

  • Add new definitions at 202.101 for “market-based pricing” and “uncertified cost data” and at 215.401 for “nongovernment sales,” “relevant sales data,” and “sufficient nongovernment sales to establish reasonableness of price”;
  • Add section 212.209 entitled “Determination of price reasonableness”;
  • Add guidelines at 215.402(a)(3), for obtaining data other than certified cost or pricing data;
  • Add instructions at 215.403-5 for the submission of certified cost or pricing data and data other than certified cost or pricing data;
  • Add guidelines at 215.404-1 concerning proposal analysis techniques;
  • Renumber the paragraph structure at 215.404-1-70;
  • Revise the clause prescription at 215.408, paragraph(3)(i), and add three new provision prescriptions at paragraph (6); and
  • Add three new provisions in part 252.

Interested parties may submit comments via the Federal eRulemaking portal by entering ‘‘DFARS Case 2013–D034’’ under the heading ‘‘Enter keyword or ID’’ and selecting ‘‘Search.’’ Select the link ‘‘Submit a Comment’’ that corresponds with ‘‘DFARS Case 2013– D034.’’ Follow the instructions provided at the ‘‘Submit a Comment’’ screen. Please include your name, company name (if any), and ‘‘DFARS Case 2013– D034’’ on your attached document.

  • Email: osd.dfars@mail.mil. Include DFARS Case 2013–D034 in the subject line of the message.
  • Fax: 571–372–6094.
  • Mail: Defense Acquisition Regulations System, Attn: Mr. Mark Gomersall, OUSD(AT&L)DPAP/DARS, Room 3B855, 3060 Defense Pentagon, Washington, DC 20301–3060.

More detail at: https://www.federalregister.gov/articles/2015/08/03/2015-18938/defense-federal-acquisition-regulation-supplement-evaluating-price-reasonableness-for-commercial 

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