Cost and Price Analysis in Government Contracting

Courses that Meet Government
Contractor Needs
www.tdgovernmentsolutions.biz
©Tim Di Guiseppe, 2012 All Rights Reserved
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Cost Accounting Standards and Regulations the short version
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Cost and Price Analysis in Government Contracting
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Accounting, Administrative & Compliance Requirements of Government Contracts
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The Requirements for Codes of Business Ethics and Conduct
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INTEGRITY and COMPLIANCE at The Company
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FAR Part 31 The summary
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Government Contracting, Are you ready to make the investment
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Truth in Negotiation Act (TINA)
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Contract Closeout
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Compliant Allocations: Getting Costs To Where They Belong
www.tdgovernmentsolutions.biz
©Tim Di Guiseppe, 2012 All Rights Reserved
2
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Allocability and Allowability Regulations vs. Standards
CAS Coverage
Full or Modified CAS Coverage
Price Adjustments
FAR Part 31 Contract Cost Principles and Procedures
◦ Applicability
◦ Allowability, Allocability, and Reasonableness
◦ Penalties for Claiming Unallowable Costs
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Truth-In-Negotiations Act (TINA)
www.tdgovernmentsolutions.biz
©Tim Di Guiseppe, 2012 All Rights Reserved
3
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Regulatory Framework
Cost Analysis & Price Analysis – Definitions
Price Analysis
Quantitative Techniques For Contract Pricing
Cost Estimating Methodologies
Cost Estimating System Requirements
Cost Analysis
Profit
Facilities Capital Cost Of Money
Cost Realism Analysis
Far Part 31
Contract Cost Principles And Procedures
Far Part 30
Cost Accounting Standards Administration
Truth-in-negotiation Act
10 USC 2306a
Defective Pricing
Government Proposal Reviews
www.tdgovernmentsolutions.biz
©Tim Di Guiseppe, 2012 All Rights Reserved
4
Accounting, Administrative & Compliance
Requirements of Government Contracts
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Introduction and Background
Important Parts of the FAR, Parts 2, 4, 9
FAR Part 12 through 16 Summary- Government Contracts
FAR Part 19 Summary- Small Business Programs
FAR Part 42 Summary- Contract Administration and Audit
FAR Part 44 Summary- Subcontracting
FAR Part 45 Summary- Government Property
FAR Part 49 Summary- Contract Terminations
Cost Accounting Regulations and Standards
Mandatory Disclosure Rule
Conflict of Interest
Executive Compensation-First-Tier Subcontract Awards
Truth-In-Negotiations Act
Government audits
www.tdgovernmentsolutions.biz
©Tim Di Guiseppe, 2012 All Rights Reserved
5
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Do the New Requirements Apply to You?
What is Required?
What Must Be Disclosed?
What Is Credible Evidence?
What are the code of Business Ethics and Conduct Requirements?
What are the Requirements?
www.tdgovernmentsolutions.biz
©Tim Di Guiseppe, 2012 All Rights Reserved
6
 Individual's Responsibility
 Introduction
 Our Relationship with the Company and Each Other
 Our Relationship with Our Customers
 Our Relationship with Our Suppliers
 Our Relationship with Others
 Our Integrity and Compliance Program
 Ethical Decision-Making Model
www.tdgovernmentsolutions.biz
©Tim Di Guiseppe, 2012 All Rights Reserved
7
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Contract Cost Principles and Procedures
• Applicability
• Allowability
• Reasonableness
• Allocability
• Credits and Advance agreements
• Direct Cost Indirect Costs
• Cost Pool Structure
• Allowability of Cost Items
www.tdgovernmentsolutions.biz
©Tim Di Guiseppe, 2012 All Rights Reserved
8
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How the Government Does Business and Why
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Acquisition Process
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FAR Part 12 Commercial Item Contracts
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FAR Part 13 Simplified Acquisition Procedures
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FAR Part 14 Sealed Bidding
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FAR Part 15 Contracts by Negotiation
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FAR Part 16 Types of Contracts
www.tdgovernmentsolutions.biz
©Tim Di Guiseppe, 2012 All Rights Reserved
9
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The Purpose of TINA
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FAR Part 15.4 Contract Pricing
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TINA Exemptions
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TINA Requirements to submit available cost or pricing data
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TINA Certification Requirements
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Applying TINA provisions to Subcontractors
www.tdgovernmentsolutions.biz
©Tim Di Guiseppe, 2012 All Rights Reserved
10
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What is a Contract Closeout
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Contractor’s Role
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Closeout Plans
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Financial Aspects – Preparing for final payment
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Quick Closeouts
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Closeout Checklist
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7 Steps for Successful Closeout
www.tdgovernmentsolutions.biz
©Tim Di Guiseppe, 2012 All Rights Reserved
11
Compliant Allocations: Getting Costs To
Where They Belong – Two Day Course
A one day course that covers the following:
• Direct/Indirect cost – what are they and how should they be
treated.
• How to allocate Costs
• The Magic Circle – Pectoral example of cost allocation
• Contract Cost Principles – Allowability, Allocability,
Reasonableness
• Profit
• Defective Pricing
www.tdgovernmentsolutions.biz
©Tim Di Guiseppe, 2012 All Rights Reserved