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# Contract Cost, Price and Finance

This Community serves as a resource for the Contract Cost, Price & Finance Community by providing references to relevant guides and related websites. Share your success stories, pricing tools and other resources to better support the community.

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## Community Contacts

Kevin Linden - Community Owner
Steven Malashevitz - Community Leader
Ray Ward - Community Leader
Friedrich Schlich - Community Leader
David Lewis - Community Leader
Amy Timmermann - Community Leader
Renee Butler - Community Leader

## Feed / Contract Cost, Price and Finance

Regression
0 Replies

Trying to see if using this regression calculation is an acceptable process to arrive at support labor.

Example by multiplying the total material times the X Variable 1 Coefficient and adding the Intercept.

Is this a good calculation or is there a better process ?

Material  \$300,000,000

Intercept    56.13
X Variable 1    0.000000098

Support labor = (\$300,000,000 * 0.000000098) + 56.13 = 86

 Actual Material \$ Actual support for Regression \$         338,073,262 91 \$         343,425,344 94 \$         396,713,846 94 \$         475,330,113 98 \$         530,814,611 104 \$         748,507,682 130 \$         823,531,326 133 \$         785,887,674 135 \$         778,807,225 144 \$         763,340,407 126

 Regression Statistics Multiple R 0.97 R Square 0.93 Adjusted R Square 0.93 Standard Error 5.532463 Observations 10 ANOVA df SS MS F Significance F Regression 1 3499.684674 3499.684674 114.3383191 5.14E-06 Residual 8 244.8652175 30.60815219 Total 9 3744.549892 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 56.13 5.7794 9.7123 1.05510E-05 42.8036 69.4582 42.8036 69.4582 X Variable 1 0.000000098 9.20E-09 10.6929 5.13637E-06 7.71952E-08 1.19645E-07 7.71952E-08 1.19645E-07

 Material \$ Support \$         300,000,000 86 \$         335,000,000 89 \$         370,000,000 93 \$         405,000,000 96 \$         440,000,000 99 \$         475,000,000 103 \$         510,000,000 106 \$         545,000,000 110 \$         580,000,000 113 \$         615,000,000 117 \$         650,000,000 120 \$         685,000,000 124 \$         720,000,000 127 \$         755,000,000 130 \$         790,000,000 134 \$         825,000,000 137 \$         860,000,000 141 \$         895,000,000 144 \$         930,000,000 148 \$         965,000,000 151 \$     1,000,000,000 155 \$     1,035,000,000 158
JPO FUNDING
0 Replies

In joint programs which service is responsible for funding joint requirements ?

LRASM joint project- common and unique requirements - who should be taking the lead in regard to joint funding?

JPO Funding
0 Replies

Looking for guidance on the regulation that states which joint program party is responsible for a common lead service.

Contract Financing for Lease or Rental Equipment?
0 Replies

I work for a DoD organization. My question arises from the fact I can find very little solid guidance on if there is any flexibility on lease or rental contracts for financing. I've scanned regulation, forums, articles, etc., and nothing seems to give me a plain answer.

Per FAR 32.001, "contract financing payments" definition is finished by the following:

"Contract financing payments do not include--

(i) Invoice payments;

(ii) Payments for partial deliveries; or

(iii) Lease and rental payments.

So, what am I to do with a rental contract for a piece of equipment (likely barely to be under SAT) as far as payments go? The rental is for an entire year, and the contractor will almost surely be a small business. Can I utilize FAR 52.232-16 ALT 1, or, is this small business really expected to go all year before they get one lump sum payment at contract completion

## Discussions / Contract Cost, Price and Finance

Regression
0 Replies
March 21, 2024 - 12:30pm
QUESTION

Trying to see if using this regression calculation is an acceptable process to arrive at support labor.

Example by multiplying the total material times the X Variable 1 Coefficient and adding the Intercept.

Is this a good calculation or is there a better process ?

SCENARIO

Material  \$300,000,000

Intercept    56.13
X Variable 1    0.000000098

Support labor = (\$300,000,000 * 0.000000098) + 56.13 = 86

 Actual Material \$ Actual support for Regression \$         338,073,262 91 \$         343,425,344 94 \$         396,713,846 94 \$         475,330,113 98 \$         530,814,611 104 \$         748,507,682 130 \$         823,531,326 133 \$         785,887,674 135 \$         778,807,225 144 \$         763,340,407 126

 Regression Statistics Multiple R 0.97 R Square 0.93 Adjusted R Square 0.93 Standard Error 5.532463 Observations 10 ANOVA df SS MS F Significance F Regression 1 3499.684674 3499.684674 114.3383191 5.14E-06 Residual 8 244.8652175 30.60815219 Total 9 3744.549892 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 56.13 5.7794 9.7123 1.05510E-05 42.8036 69.4582 42.8036 69.4582 X Variable 1 0.000000098 9.20E-09 10.6929 5.13637E-06 7.71952E-08 1.19645E-07 7.71952E-08 1.19645E-07

 Material \$ Support \$         300,000,000 86 \$         335,000,000 89 \$         370,000,000 93 \$         405,000,000 96 \$         440,000,000 99 \$         475,000,000 103 \$         510,000,000 106 \$         545,000,000 110 \$         580,000,000 113 \$         615,000,000 117 \$         650,000,000 120 \$         685,000,000 124 \$         720,000,000 127 \$         755,000,000 130 \$         790,000,000 134 \$         825,000,000 137 \$         860,000,000 141 \$         895,000,000 144 \$         930,000,000 148 \$         965,000,000 151 \$     1,000,000,000 155 \$     1,035,000,000 158
JPO FUNDING
0 Replies
March 12, 2024 - 01:33pm
QUESTION

In joint programs which service is responsible for funding joint requirements ?

SCENARIO

LRASM joint project- common and unique requirements - who should be taking the lead in regard to joint funding?

JPO Funding
0 Replies
February 22, 2024 - 09:47pm
QUESTION

Looking for guidance on the regulation that states which joint program party is responsible for a common lead service.

SCENARIO
Contract Financing for Lease or Rental Equipment?
0 Replies
December 15, 2023 - 04:22pm
QUESTION

I work for a DoD organization. My question arises from the fact I can find very little solid guidance on if there is any flexibility on lease or rental contracts for financing. I've scanned regulation, forums, articles, etc., and nothing seems to give me a plain answer.

Per FAR 32.001, "contract financing payments" definition is finished by the following:

"Contract financing payments do not include--

(i) Invoice payments;

(ii) Payments for partial deliveries; or

(iii) Lease and rental payments.

So, what am I to do with a rental contract for a piece of equipment (likely barely to be under SAT) as far as payments go? The rental is for an entire year, and the contractor will almost surely be a small business. Can I utilize FAR 52.232-16 ALT 1, or, is this small business really expected to go all year before they get one lump sum payment at contract completion

SCENARIO
Reviewing Contractor Insurance Certifications
0 Replies
October 5, 2023 - 12:55pm
QUESTION
SCENARIO

## Events / Contract Cost, Price and Finance

No content available.

## Announcements / Contract Cost, Price and Finance

Community Announcement / Contract Cost, Price and Finance
GAO-17-291 DoD Needs Better Information on Incentive Outcomes

​On 11 July 2017, the GAO released this report on the DoD's use of incentive contracts.  View it in the documents tab under reports, or on the CCPF CoP home page under Incentive Contracting.

Community Announcement / Contract Cost, Price and Finance
CLC 137

​CLC 137, Advanced Issues in Incentive Contracting has been delayed until AUG 2017.

Community Announcement / Contract Cost, Price and Finance
2017 DoD Contracting Conference

​Check back here for UPDATES from the 2017 DoD Contracting Conference being held June 26-29 in Leesburg, VA!

Community Announcement / Contract Cost, Price and Finance
Upcoming Lunch and Learn - Truth in Negotiations Act (TINA) - 1 August 2018

On 7 June 2018, the Director of Defense Procurement and Acquisition Policy issued a Memorandum entitled, "Reducing Acquisition Lead Time by Eliminating Inefficiencies Associated with Cost or Pricing Data after Price Agreement ("Sweep Data"). On 1 August 2018, Professor Bob Williams, DAU Midwest Region, will present a Lunch and Learn on this topic (Truth in Negotiations Act (TINA), Certifications, and Sweeps Topic: Reducing Acquisition Lead Time by Eliminating Inefficiencies Associated with Cost or Pricing Data Submissions after Price Agreement ("Sweep Data).

The "Sweep", as a creation of the 1980's designed to reduce the incidences of defective pricing found in non-compliance with the Truth in Negotiations Act (or TINA), adds significantly to the Procurement Acquisition Lead Time (PALT). This lunch and learn will answer the questions:

• What is TINA?
• What is Defective Pricing?
• What is SWEEP data?
• What is the impact of this policy shift?

In addition to answering these questions, Robert (Bob) Williams, Professor of Contract Cost, Price, and Finance, will present a workflow learning tool to help facilitate, motivate and document more timely submissions of current cost and pricing data during negotiations.

To register for this event  - https://www.dau.mil/events/Lunch-and-Learn--%22TINA%22-Sweep-Policy-Change

Community Announcement / Contract Cost, Price and Finance
Director of Defense Pricing Video

​Mr. Shay Assad, Director of Defense Pricing, was a featured speaker at the 2017 Government Contract Pricing Summit. A video of his presentation has been uploaded to the CCPF Playlist.

Community Announcement / Contract Cost, Price and Finance
Contract Types Animated Videos

New animated videos which illustrate how various contract types generally operate have been uploaded to the CCPF Playlist and as Learning Materials under the Documents tab.​

## Resources / Contract Cost, Price and Finance

Community Resource / Contract Cost, Price and Finance
Policy, Guidance, and Information
Community Resource / Contract Cost, Price and Finance
Tools and Templates
Community Resource / Contract Cost, Price and Finance
Incentive Contracting

• ## Guidance on Using Incentive and Other Contract Types

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Community Resource / Contract Cost, Price and Finance
Commercial Pricing

## Commercial Item Group Overview

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Community Resource / Contract Cost, Price and Finance
Indirect Costs
Community Resource / Contract Cost, Price and Finance
Policies
Community Resource / Contract Cost, Price and Finance
Contract Cost, Price and Finance Community Homepage
Community Resource / Contract Cost, Price and Finance
Education and Training
 Learning Materials AFIT FIN160 Activity Based Costing and Activity Based Management DAU iCatalog AFIT QMT110 Price Analysis Methods Continuous Learning Modules Demystifying Weighted Guidelines CLB 007 Cost Analysis USAF Pricing Center of Excellence (PCE) CLC 008 Indirect Costs WGL Cost Efficiency CLC 020 Commercial Item Determination CLC 023 Commercial Item Determination Executive Overview CLC 024 Basic Math for CON 104 131987 ​ CLC 026 Performance Based Payments Overview 131994 ​ CLC 035 Other Transaction Authority for Prototype Projects: Comprehensive ​ CLC 056 Analyzing Contract Costs ​ CLC 057 Performance Based Payments and Value of Cash Flow ​ CLC 058 Introduction to Contract Pricing ​ CLC 060 Time and Materials Contracts 162576 ​ CLC 063 Sole Source Proposal Technical Evaluations ​ CLC 064 Wage Determinations for Service and Construction Contracts ​ CLC 103 Facilities Capital Cost of Money 132001 ​ CLC 104 Analyzing Profit or Fee 131985 ​ CLC 131 Commercial Item Pricing 162577 ​ CLC 135 Understanding Incentive and Other Contract Types ​ CLM 016 Cost Estimating 131996 ​
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## Documents / Contract Cost, Price and Finance

Streamlined PNM Format
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This is a part of the DoD Sole Source Streamlining Toolbox and can be found inside the AFMC IG 5315-4 document. It is for actions valued below \$5M, the Streamlined PNM Format or any other format which adequately addresses the basis of the proposed, objective, and negotiated amounts may be used.

JOC IDIQ Task Order Minimum Guarantee
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Parametric Estimating Handbook, 4th Edition.
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This comprehensive guide serves as a valuable resource for all industry and government acquisition professionals who prepare, evaluate or negotiate proposals using parametric estimating techniques. This comprehensive guide serves as a valuable resource for all industry and government acquisition professionals who prepare, evaluate or negotiate proposals using parametric estimating techniques. Reference Link: International Cost Estimating and Analysis Organization (http://www.iceaaonline.com)

DOD and NASA Guide - Incentive Contracting Guide 1969
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This 1969 Incentive Contracting Guide, which supersedes previous DoD and NASA Incentive Contracting Guides (the NASA Cost-Plus-Award-Fee (CPAF) Guide is the only exception), has been developed to describe improved incentive contract structuring and administration techniques in order to maximize the effectiveness of incentive contracts. DOD and NASA Guide: Incentive Contracting Guide 1969

CLB 007 Cost Analysis
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Description:   Cost Analysis (excerpted from BCF-103) focuses on the basic cost analysis process. Cost estimates are one of the fundamental building blocks of any acquisition program. At the end of this module, you should be able to, define various financial management terms as they relate to the defense acquisition process, determine when various cost estimates are required to be prepared, determine what estimating methodology is most appropriate, and what cost data is of interest to various program stakeholders.  Click here to access the module If you are interested in earning 3.5 Continuous Learning Points (CLPs) in Cost Analysis towards the DoD requirement for 80 Continuous Learning Points every two years, you must go through all lessons until the orange circles are filled in on the Table of Contents and you must score 100% on the post test. You will have as many attempts as you need to attain the 100% score. DAU iCatalog CLB 007

GAO-06-66, DoD Has Paid Billions in Award and Incentive Fees Regardless of Acquisition Outcomes December 2005
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GAO-06-66,  DoD Has Paid Billions in Award and Incentive Fees Regardless of Acquisition Outcomes (December 2005)

PROPOSAL KICKOFF MEETING CHECKLIST
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This is a part of the DoD Sole Source Streamlining Toolbox. This would be used by the Contracting Officer shortly after the RFP is issued and prior to receipt of proposal. It would be used to assist in ensuring proposal adequacy at both the prime and subcontractor levels. The contracting officer should conduct proposal kickoff meetings subsequent to request for proposal (RFP) (check agency regulation/policy if this is a mandatory procedure).

Guidance on Using Incentive and Other Contract Types
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On 1 April 2016, Ms. Grady, Director of Defense Procurement and Acquisition Policy, issued the attached memo and guide on using incentive and other contract types. The guide provides considerations for contracting officers and acquisition professionals when selecting and negotiating the most appropriate contract type for a given acquisition situation. The guide provides considerations for contracting officers and acquisition professionals when selecting and negotiating the most appropriate contract type for a given acquisition situation.