Cost Estimating and Analysis for CORs (2 Days)
FAC-COR Elective Training − All Levels
Course Perspective: Initial FAC-COR training often lacks meaningful coverage of cost estimating and analysis. It notes that CORs must prepare an independent Government cost estimate (IGCE) as part of a procurement request and sometimes offers a sample format. It references that CORs have a role to play in cost analysis of proposals and may even acknowledge that they should focus on “types and quantities of direct costs, including labor.” Although initial certification training emphasizes contract modifications, it typically focuses on how to process a change under a contract – not how to determine a fair pricing adjustment.
This course addresses a major gap in carrying out the “cost and pricing” aspects of the procurement process. CORs recognize that “it must be done, but how?” This two-day course will explain the why, what, when, and how of cost estimating and analysis for new acquisitions (including task orders) and contract modifications. This class is “hands-on,” using examples to show how estimates should be generated and how they should be analyzed.
Learning Objectives: At the conclusion of this training, participants will be able to:
Understand the importance of well-prepared statements of work (SOWs) to developing estimates and conducting cost analysis.
Become familiar with types of costs and approaches to estimating and analyzing costs.
Learn how to prepare an independent Government cost estimate (IGCE) for completion and term form requirements.
Identify and apply fundamental principles of cost analysis to an offeror’s proposal.
Identify and apply fundamental principles of pricing an equitable adjustment to a contract modification.
Provide adequate supporting documentation for their estimates and analyses.
Course Topics: This course covers:
1) Basic terminology and principles of contract pricing, estimating, and analysis.
2) Price, cost, and profit relationships.
3) Buyer, seller, and market relationships in shaping estimates.
4) The COR’s role and responsibilities in contract pricing and support provided by others.
5) The statement of work (SOW): the key to effective estimating and analysis.
6) Completion form SOWs: the need for an adequate phased task completion schedule linked to deliverables.
7) Term form SOWs: need for adequate service descriptions and workload/level-of-effort requirements.
8) Estimating a direct labor mix; estimating by comparison and detailed estimating.
9) Estimating direct labor rates and additive factors.
10) Estimating other direct costs.
11) Estimating mark-ups for indirect costs and profit.
12) Cost analysis: linking the offeror’s estimate to its technical proposal and IGCE.
13) Identifying the basis for the offeror’s estimate and adjustments made.
14) Determining reasonableness and providing recommendations to the contracting officer.
15) Reviewing a request for equitable adjustment: principles and techniques.
Hours: 16 hours/CLPs are credited for completion of this course. Classroom hours are 8:30 – 4:30.