This two-day online course introduces participants to the concepts of cost and price analysis in government contracts from a buyer's perspective and translates them into actionable terms. Participants will gain a deep understanding of the “why's” and “how-to's” of cost analysis. Through a thorough review of relevant regulations and real-world examples, participants will achieve a working-level understanding of these techniques.
Form and price analysis in government contracts
Form and price analysis is an important step in bidding on government contracts. It allows government agencies to determine whether a price is fair and reasonable and allows for the most efficient use of government funds. The purpose of this analysis is to ensure that a prime contract is not overpriced. This is done by analyzing contractor purchasing systems and certified cost and pricing data.
While this process can be difficult, it is intended to protect taxpayers by ensuring that prices are reasonable. Companies should hire a cost analysis expert to help them with this process. While this type of analysis is not mandatory, companies that do not often undertake it may wish to consider seeking professional help.
Form and price analysis in government contracts involves the comparison of price and form to ensure that the costs are realistic. It is important to note that the cost estimate must be supported by other information. It should also have the support of other members of the government acquisition team. Using this analysis can identify understated costs that a contract may require.
Besides the form and price analysis, this analysis also includes the evaluation of cost data other than certified cost and pricing data i loved this. This analysis helps contracting officers decide whether a price is reasonable or not. For example, if a contractor is trying to sell a sole source commercial item, he or she must be willing to provide certified cost data.
The FAR outlines what constitutes cost and pricing data in a contract. It is important to note that certified cost and pricing data is not always current. The data submitted by an offeror is not considered certified cost and pricing data if it is inaccurate or non-current. Furthermore, price negotiations that exceed the certified cost or pricing data threshold must include a basis for the exception.
Cost and price analysis is crucial to the fairness of a contract. Without proper cost and price analysis, the contracting officer cannot make an informed decision on price. It is crucial to collect sufficient data to ensure that the past prices are based on accurate analysis. It is also necessary to coordinate the analysis with other offices to ensure that the data used for cost and pricing are comparable.
How to spot opportunities
If you want to find opportunities in the government market, you need to know how to spot these opportunities. The first step is to identify the commodity code. Government agencies use this code to solicit specific professional services. Then, use the search function in GovShop to look for opportunities that fall under this code. This will narrow down the number of opportunities for you and allow you to begin your capture effort. You can also make your own qualifying criteria.
Once you have the right data, you can forecast the government's investment decisions and evaluate market conditions. This information can give you an advantage over the competition and provide a sense of business certainty. However, before you can start tracking data and identifying opportunities, you need to determine your market size and shape. This step is critical to analyzing government contracts and finding new market opportunities. This is done by identifying the products and services that are in demand, the problems they solve, and their potential value for customers.
Track agency trends
If you're interested in tracking government contract trends, you can use sources spanning more than 50 years. Statistical Abstracts and reports provide high-level data. The Government Accountability Office frequently posts infographics and reports on its blog. One of these is the CONTRACTING DATA ANALYSIS Assessment of Government-wide Trends. You can find full bibliographic information for these sources in the Library of Congress Online Catalog.