COST ANALYST SUPPORT - PowerPoint PPT Presentation

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COST ANALYST SUPPORT

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  1. COST ANALYST SUPPORT YESTERDAY AND TODAY

  2. YESTERDAY AS RECENTLY AS THE LATE 1990s COST/PRICE ANALYST (C/PA) ROLE MAINLY INVOLVED COST AND PRICING SUPPORT: • COST TYPE SUBCONTRACTS • SOLE SOURCE PROCUREMENTS • FEDERAL ACQUISITION REGULATION (FAR) PART 15 STRICT INTERPRETATION

  3. YESTERDAY AS RECENTLY AS THE LATE 1990s • LIMITED INVOLVEMENT IN CUMBERSOME AND LABOR INTENSIVE COMPETITIVE SOURCE SELECTION METHODOLOGY • C/PA PARTICIPATION LIMITED TO EVALUATION OF COST ESTIMATE AT AWARD PHASE

  4. TODAY • MOVED AWAY FROM COST CONTRACTING • VERY EXPENSIVE AND TIME CONSUMING • COPD THRESHOLD UP TO $650K • PROCUREMENT HAS A STRONG PREFERENCE FOR COMMERCIAL CONTRACTING • USE Best Value Source Selection (BVSS) for competitive awards (best combination of technical attributes and price) • MORE LATITUDE IN DEFINING COMMERCIALITY AND COMPETITION

  5. CURRENT CONTRACTUAL PREFERENCES COST/PRICE ANALYST (C/PA) ROLE NOW MAINLY INVOLVES: • FIXED PRICE • TIME AND MATERIAL • ELECTRONIC ORDERING SYSTEM CONTRACTS

  6. TODAY C/PA FUNCTION EMPHASIS • EMPHASIS ON COMMERCIALITY • Emphasis on reasonableness of price in lieu of cost analysis • BEST VALUE PROVIDES FOR EMPHASIS ON TECHNICAL VALUE VS COST • Competition eliminates the need for COPD, which requires audited/validated indirect rates.

  7. TODAY C/PA FUNCTION EMPHASIS • BV PROVIDES LATITUDE FOR DETERMINING COMPETION AND NEED FOR COPD • PROCUREMENT TEAM APPROACH • COST ANALYST MORE OF AN ADVISOR

  8. SUPPORTING AREAS C/PA ROLE AS SUBCONTRACT ADMIN. SUPPORT • EOS CONTRACTS 28% • INCURRED COSTS/BILLINGS • Work closely with SASS 20% • PROPOSALS • FP, T&M, CRSC, 15% • CLOSEOUTS 11%

  9. SUPPORTING AREAS C/PA ROLE AS SUBCONTRACT ADMIN. SUPPORT • PARTICIPATE IN ALL FORMAL REVIEW OF RFPs AND CONTRACTS 10% • FINANCIAL CAPABILITIES 7% • TIMEKEEPING SYSTEM REV. (Pre) 3% • TIMEKEEPING SYSTEM REV. (Post) 2%

  10. SUPPORTING AREAS C/PA ROLE AS SUBCONTRACT ADMIN. SUPPORT • BVSS BUYING TEAM MEMBER 1% • GUIDANCE ON PRICING ISSUES 1% • GUIDANCE ON SUPPORTING COMMERCIAL OR COMPETITION 1% • ASSISTANCE IN RFP DEV 1% • ACCOUNTING SYSTEM REV MIN.

  11. SUPPORTING AREAS PROPOSALS (15% of C/PA function) UNDER $650K20% • DCAA FURNISHED RATES 90% • COST ANALYST DETERMINED 10% OVER $650k (COPD)80% • T &M BILLING RATES 60% • DCAA AUDITS/RATES PROV 30% • COST ANALYST DETERMINED 10%

  12. SUPPORTING AREAS INCURRED COST REVIEWS (20% of C/PA function) • T&M BILLING RATES 60% • DCAA DETERMINED RATES 30% • COST ANALYST DETERMINED 10%

  13. STANDARD PROC. 15.6 COST OR PRICE ANALYSIS • Price Analysis below $100,000 • Cost Analysis at $100,000 or more • COPD $650,000 EXEMPTIONS: COMMERCIAL PRICING AND COMPETITION • COST REALISM EVALUATE ESTIMATES FOR REALISM/BEST VALUE, COMMERCIAL, COMPETITIVE OR UNDER $650,000