YESTERDAY AND TODAYYESTERDAY AND TODAY

COST ANALYST COST ANALYST SUPPORTSUPPORT

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YESTERDAYYESTERDAY

AS RECENTLY AS THE LATE 1990sAS RECENTLY AS THE LATE 1990s

COST/PRICE ANALYST (C/PA) ROLE MAINLY COST/PRICE ANALYST (C/PA) ROLE MAINLY INVOLVED COST AND PRICING INVOLVED COST AND PRICING SUPPORT:SUPPORT:– COST TYPE SUBCONTRACTSCOST TYPE SUBCONTRACTS– SOLE SOURCE PROCUREMENTSSOLE SOURCE PROCUREMENTS– FEDERAL ACQUISITION REGULATION (FAR) FEDERAL ACQUISITION REGULATION (FAR)

PART 15 STRICT INTERPRETATIONPART 15 STRICT INTERPRETATION

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YESTERDAYYESTERDAY

AS RECENTLY AS THE LATE 1990sAS RECENTLY AS THE LATE 1990s

LIMITED INVOLVEMENT IN LIMITED INVOLVEMENT IN CUMBERSOME AND LABOR CUMBERSOME AND LABOR INTENSIVE COMPETITIVE SOURCE INTENSIVE COMPETITIVE SOURCE SELECTION METHODOLOGYSELECTION METHODOLOGY– C/PA PARTICIPATION LIMITED TO C/PA PARTICIPATION LIMITED TO

EVALUATION OF COST ESTIMATE AT EVALUATION OF COST ESTIMATE AT AWARD PHASEAWARD PHASE

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TODAYTODAY

– MOVED AWAY FROM COST CONTRACTINGMOVED AWAY FROM COST CONTRACTING VERY EXPENSIVE AND TIME CONSUMINGVERY EXPENSIVE AND TIME CONSUMING COPD THRESHOLD UP TO $650KCOPD THRESHOLD UP TO $650K

– PROCUREMENT HAS A STRONG PROCUREMENT HAS A STRONG PREFERENCE FOR COMMERCIAL PREFERENCE FOR COMMERCIAL CONTRACTINGCONTRACTING USE Best Value Source Selection (BVSS) for USE Best Value Source Selection (BVSS) for

competitive awards (best combination of competitive awards (best combination of technical attributes and price)technical attributes and price)

– MORE LATITUDE IN DEFINING MORE LATITUDE IN DEFINING COMMERCIALITY AND COMPETITIONCOMMERCIALITY AND COMPETITION

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CURRENT CONTRACTUAL CURRENT CONTRACTUAL PREFERENCESPREFERENCES

COST/PRICE ANALYST (C/PA) ROLE COST/PRICE ANALYST (C/PA) ROLE NOW MAINLY INVOLVES:NOW MAINLY INVOLVES:

FIXED PRICEFIXED PRICE TIME AND MATERIALTIME AND MATERIAL ELECTRONIC ORDERING SYSTEM ELECTRONIC ORDERING SYSTEM

CONTRACTSCONTRACTS

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TODAYTODAY

C/PA FUNCTION EMPHASISC/PA FUNCTION EMPHASIS

EMPHASIS ON COMMERCIALITYEMPHASIS ON COMMERCIALITY– Emphasis on reasonableness of price in lieu of Emphasis on reasonableness of price in lieu of

cost analysiscost analysis BEST VALUE PROVIDES FOR EMPHASIS ON BEST VALUE PROVIDES FOR EMPHASIS ON

TECHNICAL VALUE VS COSTTECHNICAL VALUE VS COST– Competition eliminates the need for COPD, Competition eliminates the need for COPD,

which requires audited/validated indirect rates.which requires audited/validated indirect rates.

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TODAYTODAY

C/PA FUNCTION EMPHASISC/PA FUNCTION EMPHASIS

BV PROVIDES LATITUDE FOR BV PROVIDES LATITUDE FOR DETERMINING COMPETION AND NEED DETERMINING COMPETION AND NEED FOR COPDFOR COPD

PROCUREMENT TEAM APPROACHPROCUREMENT TEAM APPROACH COST ANALYST MORE OF AN ADVISORCOST ANALYST MORE OF AN ADVISOR

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SUPPORTING AREASSUPPORTING AREAS

C/PA ROLE AS SUBCONTRACT ADMIN. C/PA ROLE AS SUBCONTRACT ADMIN. SUPPORTSUPPORT

EOS CONTRACTSEOS CONTRACTS 28%28% INCURRED COSTS/BILLINGSINCURRED COSTS/BILLINGS

– Work closely with SASSWork closely with SASS 20%20% PROPOSALSPROPOSALS

– FP, T&M, CRSC, FP, T&M, CRSC, 15%15% CLOSEOUTSCLOSEOUTS 11%11%

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SUPPORTING AREASSUPPORTING AREAS

C/PA ROLE AS SUBCONTRACT C/PA ROLE AS SUBCONTRACT ADMIN. SUPPORTADMIN. SUPPORT

PARTICIPATE IN ALL FORMAL REVIEW PARTICIPATE IN ALL FORMAL REVIEW OF RFPs AND CONTRACTS OF RFPs AND CONTRACTS 10%10%

FINANCIAL CAPABILITIESFINANCIAL CAPABILITIES 7% 7% TIMEKEEPING SYSTEM REV. (Pre)TIMEKEEPING SYSTEM REV. (Pre) 3% 3% TIMEKEEPING SYSTEM REV. (Post)TIMEKEEPING SYSTEM REV. (Post) 2% 2%

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SUPPORTING AREASSUPPORTING AREAS

C/PA ROLE AS SUBCONTRACT C/PA ROLE AS SUBCONTRACT ADMIN. SUPPORTADMIN. SUPPORT

BVSS BUYING TEAM MEMBERBVSS BUYING TEAM MEMBER 1%1% GUIDANCE ON PRICING ISSUESGUIDANCE ON PRICING ISSUES

1%1% GUIDANCE ON SUPPORTING GUIDANCE ON SUPPORTING

COMMERCIAL OR COMPETITIONCOMMERCIAL OR COMPETITION 1%1%

ASSISTANCE IN RFP DEVASSISTANCE IN RFP DEV 1%1% ACCOUNTING SYSTEM REVACCOUNTING SYSTEM REV MIN.MIN.

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SUPPORTING AREASSUPPORTING AREAS

PROPOSALS (15% of C/PA function)PROPOSALS (15% of C/PA function)

UNDER $650KUNDER $650K 20%20% DCAA FURNISHED RATESDCAA FURNISHED RATES 90%90% COST ANALYST DETERMINED COST ANALYST DETERMINED 10%10%

OVER $650k (COPD)OVER $650k (COPD) 80%80% T &M BILLING RATEST &M BILLING RATES 60%60% DCAA AUDITS/RATES PROVDCAA AUDITS/RATES PROV 30%30% COST ANALYST DETERMINED COST ANALYST DETERMINED 10%10%

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SUPPORTING AREASSUPPORTING AREASINCURRED COST REVIEWS (20% of C/PA INCURRED COST REVIEWS (20% of C/PA

function)function)

T&M BILLING RATEST&M BILLING RATES 60%60% DCAA DETERMINED RATESDCAA DETERMINED RATES 30%30% COST ANALYST DETERMINEDCOST ANALYST DETERMINED 10%10%

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STANDARD PROC. 15.6STANDARD PROC. 15.6

COST OR PRICE ANALYSISCOST OR PRICE ANALYSIS Price Analysis below $100,000Price Analysis below $100,000 Cost Analysis at $100,000 or moreCost Analysis at $100,000 or more COPD $650,000COPD $650,000

EXEMPTIONS: COMMERCIAL PRICING AND EXEMPTIONS: COMMERCIAL PRICING AND COMPETITIONCOMPETITION

COST REALISMCOST REALISMEVALUATE ESTIMATES FOR REALISM/BEST VALUE, EVALUATE ESTIMATES FOR REALISM/BEST VALUE, COMMERCIAL, COMPETITIVE OR UNDER $650,000COMMERCIAL, COMPETITIVE OR UNDER $650,000

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