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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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Feed / Contract Cost, Price and Finance

Regression
0 Replies
View Discussion

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
View Discussion

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
View Discussion

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
View Discussion

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
View Discussion
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
COMMENTS
JPO FUNDING
0 Replies
View Discussion
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?

COMMENTS
JPO Funding
0 Replies
View Discussion
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
COMMENTS
Contract Financing for Lease or Rental Equipment?
0 Replies
View Discussion
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
COMMENTS
Reviewing Contractor Insurance Certifications
0 Replies
View Discussion
October 5, 2023 - 12:55pm
QUESTION
SCENARIO
COMMENTS

Events / Contract Cost, Price and Finance

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Announcements / Contract Cost, Price and Finance

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

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
View Announcement

​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
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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.​

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

​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
View Announcement

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

Community Announcement / Contract Cost, Price and Finance
2017 DoD Contracting Conference
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​Check back here for UPDATES from the 2017 DoD Contracting Conference being held June 26-29 in Leesburg, VA!

Resources / Contract Cost, Price and Finance

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

Image removed.Commercial Item Group Overview

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Community Resource / Contract Cost, Price and Finance
Indirect Costs
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Community Resource / Contract Cost, Price and Finance
Resources
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Community Resource / Contract Cost, Price and Finance
Continuous Learning Modules CLM

Listing of relevant modules available on the DAU Continuous Learning Center (CLC). Because of the way the CLC is set up, you will have to access each module from the CLC main menu.

DAU Continuous Learning Center 

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Community Resource / Contract Cost, Price and Finance
Training
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Documents / Contract Cost, Price and Finance

Negotiation Tracker
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Summary

This is a part of the DoD Sole Source Streamlining Toolbox. This spreadsheet tracks the contractor’s elements; subtotal cost, profit, profit %, FCCOM and total costs. For each element, this information is tracked for the original proposal, contractor’s updated proposals and government positions.

Lessons Learned for Pricing Chiefs' Workshop
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Summary

In this PowerPoint presentation, MaryKathryn Robinson, SAF/AQCK, provides lessons learned for the business clearance and peer review process.  In addition, she discusses the structure of the PPNM. This briefing was presented at the  AF Pricing Chiefs' Workshop hosted by HQ AFMC/PKF from 6-8 October and held at DAU Midwest Region, Kettering, Ohio. In this PowerPoint presentation, MaryKathryn Robinson, SAF/AQCK, provides lessons learned for the business clearance and peer review process.  In addition, she discusses the structure of the PPNM.

Improving Competition in Defense Procurements
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This memorandum provides additional guidance for competitive situations in which only one offer is received in response to a solicitation and is based on the direction provided in the USD(AT & L) memorandum "Better Buying Power: Guidance for Obtaining Greater Efficiency and Productivity in Defense Spending" dated September 14, 2010. Further details are provided within the memorandum. Provides guidane for competitive situations in which only one offer is received.

CLC 131 Commercial Item Pricing
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This training module includes an overview of the new Procedures, Guidance, and Information (PGI) concerning sole-source commercial items and elaboration on the requirements of FAR 15.4. It includes links to relevant FAR, PGI, and Contract Pricing Reference Guide sections and includes examples of applications of the material. The overall learning objective of the module is to identify the various pricing methodologies that can be used to determine fair and reasonable prices for a commercial acquisition. Click here to access this course information. This module takes approximately one hour to complete. It contains an end of module test that must be passed with a 100% score. You will have unlimited attempts to pass the test. Upon completion of this module, you will receive 1 Continuous Learning Point (CLP), an electronic certificate of completion in your ATLAS account and a record of completion entered into your DAU Transcript.

CLC 104 Analyzing Profit or Fee
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Description: Determining profit/fee involves rewarding the contractor for performance and acceptance of risk. But what is a reasonable profit/fee for a given contract? Different individuals' perspectives may vary substantially on this question. That is why proper use of the structured approach that FAR requires is so important. In this module, you will learn about this approach and the guidelines for developing a reasonable profit/fee position. Upon completion of this module you will receive 1 CLP. Click here to access training. CLC104

Contractor Insurance and Pension Review, DCMA Instructions and Requirements
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Contractor Insurance and Pension Review, DCMA Instructions and Requirements

Major Subcontractor Partnering Process Agreement
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Summary

This is a part of the DoD Sole Source Streamlining Toolbox. This is a sample partnering agreement when there are subcontractor’s over $500M. It sets the ground rules for initial proposal reviews, audits, the level of detail of analysis for the proposal and how alternatives analysis would be run.

Proposal Adequacy Checklist Revision
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Summary

Published as a DFARS final rule in Federal Register (79 FR 4633). This final rule removed item 19 from the Proposal Adequacy Checklist as it duplicated item 14 under the Material and Service Section. Provides the Final Rule as published on January 29, 2014 in 79 FR 4633.

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