Jump to content
The Wifcon Forums and Blogs
Sign in to follow this  
lotus

Index of cost or pricing data

Recommended Posts

i ran across a cost or pricing requirement at FAR 15.408, Table 15-2, Section I Paragraph B and am having a hard time visualizing what that would look like, and what to include and what to exclude. 

Facts come from all over the place.  Accounting reports.  Old text books.  Rules of thumb.  Magazine articles.  Yesterday's lunch.  Databases.  Conversations. 

Can anyone point me to an example and provide explanation?

--------------------------------------------

I made a mess of this post when I was trying to get rid of all the different fonts used.

Bob

Share this post


Link to post
Share on other sites

lotus, suggest you start with FAR 2.101 definition of "certified cost or pricing data" which discusses what "facts" the government is concerned about. The purpose of the index is to help the government navigate through the (certified) cost or pricing data; the goal is to prevent a contractor from dumping a lot of paper and claiming that it has complied with the disclosure requirement, and then forcing government personnel to find a metaphorical needle in a haystack.

Constructing an index isn't really very hard if your narrative clearly explains the facts and assumptions used to arrive at the proposed price. In fact, here is a narrative template for you to consider using to create your index, provided free of charge:

1. General Background

2. Key Assumptions

3. Direct Labor

4. Direct Material

5. Subcontractors

6. Other Direct Costs

7. Indirect costs

8. Other Matters

I like to use "other matters" for stuff like M&A activity, efficiency studies, and the like.

Hope this helps.

 

Share this post


Link to post
Share on other sites
On 11/4/2018 at 9:53 AM, lotus said:

Thanks Don.  It is a reference table for cost buildups.  Maybe that's a start, but it hardly seems to include "all facts."

That model actually complies with the Instructions in FAR Table 15-2. The instructions state:

Quote

The requirement for submission of certified cost or pricing data is met when all accurate certified cost or pricing data reasonably available to the offeror have been submitted, either actually or by specific identification, to the Contracting Officer or an authorized representative.

The exhibits reference specific files where the cost or pricing data are contained and can be furnished "immediately upon request". 

Share this post


Link to post
Share on other sites

Thanks again, Don.

     When I think of an index, I normally think of the index at the back of a textbook.   Key words and topics are typically indexed.

     When I think of all facts, I include this in my thinking.   Offeror has an internal discussion about the price to offer and decides on how low it can go in negotiations.  That the discussion took place is a fact.  That a decision was made is a fact.  The contents of that decision is a fact.  All are relevant to the evaluation of the offer, and the KO would love to know those facts.

     I'm struggling with indexing those facts.

Share this post


Link to post
Share on other sites

While they may be facts, they seem to be judgmental (negotiation position) and/or not relevant to or are not cost or pricing data ( a discussion took place, a decision was made). Therefore they wouldn't be indexed. Other examples include the fact that companies may be always looking to buy another company, merge or sell the company. When executives reach a final decision to pursue one of those items, it would be a fact that may impact future costs. "Always looking" is not a fact that has any affect on cost or pricing data because nothing has actually happened as a fact to affect the cost or pricing data. If you wish you may include "always looking" in your index but it seems to raise more questions than facts that affect cost or pricing data.

Share this post


Link to post
Share on other sites
23 hours ago, lotus said:

Thanks again, Don.

     When I think of an index, I normally think of the index at the back of a textbook.   Key words and topics are typically indexed.

     When I think of all facts, I include this in my thinking.   Offeror has an internal discussion about the price to offer and decides on how low it can go in negotiations.  That the discussion took place is a fact.  That a decision was made is a fact.  The contents of that decision is a fact.  All are relevant to the evaluation of the offer, and the KO would love to know those facts.

     I'm struggling with indexing those facts.

here_2_help's #8, "Other Matters" seems like a good place to put other relevant disclosures.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×