Contract pricing january 2007
This presentation is the property of its rightful owner.
Sponsored Links
1 / 14

Contract Pricing January 2007 PowerPoint PPT Presentation


  • 88 Views
  • Uploaded on
  • Presentation posted in: General

U.S. Air Force. Contract Pricing January 2007. I n t e g r i t y - S e r v i c e - E x c e l l e n c e. Mr. Phil McManus, GS 15 Chief, Contract Pricing Electronic Systems Center DSN 478-4529. I n t e g r i t y - S e r v i c e - E x c e l l e n c e. Overview.

Download Presentation

Contract Pricing January 2007

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Contract pricing january 2007

U.S. Air Force

Contract Pricing January 2007

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Mr. Phil McManus, GS 15

Chief, Contract Pricing

Electronic Systems Center

DSN 478-4529

I n t e g r i t y - S e r v i c e - E x c e l l e n c e


Overview

Overview

  • Air Force Organization

  • Workforce / Workload

  • Challenges – Field Perspective

  • Initiatives


Air force center organization simplified

Air Force Center Organization (Simplified)

Wings/Groups own all wing/group slots including PK – Some organizations currently have pricing slots in wings/groups

Center Staff Pricing provides support to all wings/groups:

Threshold: Actions >$10M at Product Centers, #$ at ALCs


Pricing responsibilities

Pricing Responsibilities

  • Primary Responsibilities:

    • Cost & Price Analysis / Negotiation

      • Proposal Adequacy

      • TINA Compliance

    • Training

    • Business / Financial Advice

    • Pricing Policy


How we function

How We Function

  • Limited resources forces “pricing triage”

  • Match analyst skills to cases based on:

    • Complexity

    • Pricing Risk (contract type, structure)

    • Urgency

    • Caseload

    • Training Needs


Air force price analysts by grade

Air Force Price AnalystsBy Grade

As of Dec 06

Source: SAF/AQCX


Air force price analysts by command

Air Force Price AnalystsBy Command

Total = 131

As of Dec 06

Source: SAF/AQCX


Af materiel command pricing workload

AF Materiel CommandPricing Workload

  • FY 05 data - ASC 12 Month look-ahead in Aug 06 showed 87cases worth $26B


Challenges field perspective

ChallengesField Perspective

  • Importance of Price

    • Balance between Acquisition Speed and Price has been lost.

    • Price Should Matter to everyone – When we pay too much for what we buy, Warfighters end up with less of what they need

    • Importance of price needs to be re-established. If not, why have pricing?


Challenges field perspective cont

ChallengesField Perspective (cont)

  • Pricing is understaffed

    e.g.

    • ASC - had to waive nearly $900M of pricing cases in FY 05`

      50% cut in staff since 1990 with significant increase

      in workload

    • ESC – 33% cut in staff since 1996 / workload same

  • Pricing facing loss of key personnel (real soon)

    • ESC - 40% will be retired by Apr 08 (15 months)

    • ASC - 33% are retirement eligible within 4 years

    • WR-ALC - 27% will retire in < 5 years, 68% in < 10 years

    • OC-ALC has already experienced this - avg pricing experience is now < 7 years


Challenges field perspective cont1

ChallengesField Perspective (cont)

  • Morale of Workforce is negatively impacted by:

    • Caseload / Schedule stress

    • Integrated Product Team Approach

    • Limited promotion opportunities

    • Reduced emphasis on importance of price

  • Analysis & negotiation skills atrophied?

    • Case load & deadlines limit depth of analysis/negotiation

    • De-emphasis on price (why sharpen tools you won’t use?)

    • IPT Pricing

      • Manpower intensive – not enough pricers to support

      • Essentially a “done deal” coming out of IPT

      • Pressure on Govt evaluators to reach agreement

      • Process becoming less disciplined

      • Difficult learning environment for trainees


Initiatives tools

Initiatives / Tools

  • SAF/AFMC Level

    • Pricing Community of Practice (CoP)

    • Contract Audit Follow-up (CAFU)

    • Web-based Training Modules (AFIT)

    • Web-based Weighted Guidelines

    • Performance Based Payments Tool

    • Numerous subject specific guides


Initiatives tools1

Initiatives / Tools

  • Local Level

    • New Employee Training and Mentoring

    • Journeymen Refresher Training

    • Trainee Rotation Through Pricing

    • Negotiation Workshop


Final thoughts

Final Thoughts

“Pricing is the most value added task that a contract negotiator does”

Tom Wells, SES

AFMC/PK


  • Login