Course Description:
This FAI-compliant course explores contract pricing in greater depth than in the Price Analysis and Cost Analysis courses. This advanced curriculum is directed to the student with a basic understanding of cost and price analysis. The course materials and discussions illustrate how mathematical techniques and analytical methods may be used to solve problems related to contract pricing. The student is required to demonstrate an understanding of the material by applying appropriate techniques to course problems.
This course relies heavily on case studies and practical exercises to ensure that students understand the learning objectives and can apply them. There is, of course, some lecture required to present various mathematical and analytical concepts, but students will work daily in small groups to cement the learning.
This is an advanced course, and as such should not be taken by the casual student who only requires an introduction to contract pricing. Students in this course should be contract specialists and others who are actively involved in complex contract pricing activities. A minimum of one year of experience in the contracting field is recommended as preparation for this course. Prerequisites:
• Acquisition Planning I
• Contract Formation I
• Contract Administration I
• Price Analysis
• Cost Analysis
• Federal Contract Negotiation
• Acquisition Planning II
• Contract Formation II
• Contract Administration II
Learning Objectives:
1. Math Techniques
Given data and analytical references and resources:
• Differentiate among statistical methods in pricing.
• Select the appropriate statistical technique.
• Describe the linear regression process and use regression analysis to predict the dependent variable.
• Use Net Present Value analysis to determine the best procurement alternative.
• Apply price indexing to project a new FPEPA rate.
• Paraphrase the Unit Improvement Curve Theory and estimate work differences using Improvement Curve Analysis.
2. Production
Given a production contract scenario, references, mathematical techniques, and analytical resources:
• Identify costs to include in the indirect cost pool.
• Calculate the indirect cost rate.
• Identify Fixed Price Incentive Firm (FPIF) elements.
• Calculate FPIF elements.
3. Supplies
Given a commercial supply contract scenario, references, mathematical techniques, and analytical resources:
• Determine commerciality.
• Determine the cost data required.
• Recognize issues and factors to consider in a lease vs. purchase decision.
• Use Net Present Value analysis to make a lease vs. purchase decision.
• Uses price indexing to calculate contract cost changes.
• Execute a Termination for Commercial Item modification.
4. Services
Given a services contract scenario, references, mathematical techniques, and analytical resources:
• Identify Cost Plus Incentive Fee (CPIF) elements.
• Calculate CPIF elements.
• Recognize issues and factors to consider in making equitable adjustments.
• Determine the equitable price adjustment for a contract modification.
• Determine the contract price adjustment for defective pricing data.
5. Construction
Given a construction contract scenario, references, mathematical techniques, and analytical resources:
• Use Improvement Curve Analysis to determine labor hour changes.
• Determine the adjusted labor cost for changing labor conditions.
• Determine a proposed equitable price adjustment for work stoppages.
• Calculate the adjusted settlement for a partial Termination for Convenience.f
Students may be able to split the course into two 1-week courses. Please call for details. |
