Contracting officers and primes must determine a price fair and reasonable before contract award which requires performing either cost or price analysis. Luckily, not all proposals must endure rigorous cost analysis, but you still must provide enough information to aid in the determination of a fair and reasonable price. We’ll explain the differences between cost and price analysis, the reasons for each, and best practices to help you maximize profit and minimize findings.
1. Identify and collect all costs associated with a product or service
2. Calculate and allocate indirect rates
3. Present cohesive and logical cost and pricing support
Robert E. Jones
Government Contracts & Accounting Expert
CPA, CPCM, NCMA Fellow
Meet your presenter:
• Robert has over 15 years of Department of
Defense contract and accounting experience.
• He has successfully managed over $30 million
in federal contracts and has a 100% success
rate for all audits he has helped support.
Government Accounting & Finance Advisor
Meet your presenter:
• Melissa has successfully developed and
instituted compliant and efficient processes
that have saved businesses over $1.5 million
during the last 5 years.
• She has successfully managed over $100
million in annual federal funds.
Today we’ll learn:
How to help the contracting officer make a determination
of fair and reasonable prices.
“We can complain because rose
bushes have thorns, or rejoice
because thorns have roses.”
~ Alphonse Karr
French critic, journalist, and novelist
1. Identify and collect all costs
associated with a product or
2. Calculate and allocate indirect
3. Present cohesive and logical
cost and pricing support
Are you currently working on government contracts?
• Not yet - we need help!
• Not interested
Identify & Collect
Follow RFP Instructions
Excel vs PDF
FAR Table II
Hours & Dollars
by Labor Category
by Year (time phased)
Provide Complete Details
Provide all information requested
• Should only be top-level price
• May ask for price by CLIN or item, but should not be cost elements
• Base labor and material costs
• Details of Fringe, Overhead, and G&A
Verify the Math
Have an outsider verify the math
Ensure columns foot and cross-foot
Ensure supporting documents match
Ensure supporting tables tie to summary
Do you need help with cost and pricing?
• Yes – please hurry!
• No – we’re experts