CON 7310: Cost Analysis Course
IDACQI8200

Module 1: Regulatory Framework — FAR Part 15, TINA, and the Cost/Pricing Landscape

• Identify the regulatory foundation governing cost and pricing data requirements under the FAR.
• Explain the purpose and applicability of the Truth in Negotiations Act (TINA).
• Distinguish between certified cost or pricing data and other than certified cost or pricing data.
• Recognize the thresholds and exceptions that trigger cost or pricing data requirements.

Module 2: Price Analysis Techniques and Applications

• Identify price analysis techniques appropriate for evaluating contractor proposals.
• Apply catalog and market price comparisons to assess price reasonableness.
• Use historical pricing data and competitive pricing benchmarks effectively.
• Determine when price analysis alone is sufficient to establish fair and reasonable pricing.

Module 3: Cost Analysis — Direct and Indirect Cost Elements

• Distinguish between direct and indirect costs in contractor proposals.
• Analyze direct cost elements including labor, materials, and subcontract costs.
• Evaluate indirect cost pools, allocation bases, and overhead rates.
• Identify inconsistencies and unsupported costs within a proposal.

Module 4: Labor, Material, and Subcontract Cost Analysis

• Evaluate proposed labor rates and labor mix for reasonableness and realism.
• Analyze material costs using purchasing records, vendor quotes, and market data.
• Apply subcontract review requirements and flow-down obligations.
• Identify risks associated with inadequately supported labor and material estimates.

Module 5: Overhead, G&A, and Other Indirect Costs

• Analyze overhead, general and administrative (G&A), and other indirect cost pools.
• Evaluate the reasonableness of proposed indirect cost rates.
• Understand the relationship between indirect rates and contract cost impact.
• Identify allocation methodology concerns that may affect proposal accuracy.

Module 6: Cost Realism Analysis for Cost-Reimbursement Contracts

• Explain the purpose and application of cost realism analysis.
• Distinguish between cost realism and cost reasonableness determinations.
• Apply cost realism techniques to evaluate proposed costs on cost-reimbursement contracts.
• Document cost realism findings in support of the source selection decision.

Module 7: Profit and Fee Analysis — Policy, Techniques, and Weighted Guidelines

• Explain the regulatory policies governing profit and fee objectives under FAR Part 15.
• Apply the weighted guidelines method to develop a pre-negotiation profit objective.
• Distinguish between fixed-fee, incentive-fee, and award-fee structures.
• Negotiate profit objectives consistent with contractor risk and performance expectations.

Module 8: Cost Accounting Standards (CAS) Overview and Application

• Identify the purpose and scope of the Cost Accounting Standards (CAS).
• Distinguish between CAS-covered and non-CAS-covered contracts.
• Recognize the impact of CAS requirements on contractor cost proposals.
• Apply CAS compliance considerations during proposal evaluation.

Module 9: Defective Pricing and TINA Compliance

• Identify circumstances that may constitute defective pricing under TINA.
• Explain government remedies available when defective pricing is identified.
• Apply procedures for reviewing contractor disclosure obligations.
• Recognize audit and oversight roles in TINA compliance and enforcement.

Module 10: Unbalanced and Unrealistic Pricing Identification

• Define unbalanced pricing and explain its risks to the government.
• Identify indicators of mathematically and materially unbalanced proposals.
• Distinguish between unrealistic pricing and unbalanced pricing concerns.
• Determine appropriate government responses to identified unbalanced proposals.

Module 11: Forward Pricing Rate Agreements and Recommendations

• Explain the purpose and use of Forward Pricing Rate Agreements (FPRAs) and Recommendations (FPRRs).
• Identify how FPRAs and FPRRs are established and applied in proposal evaluation.
• Assess the reliability of forward pricing rates when evaluating contractor proposals.
• Recognize the role of DCAA in supporting forward pricing rate negotiations.

Module 12: Should-Cost Analysis and Independent Government Cost Estimates

• Explain the purpose of should-cost analysis and when it is appropriate.
• Distinguish between should-cost review and Independent Government Cost Estimates (IGCEs).
• Apply should-cost principles to identify cost reduction opportunities.
• Develop and document IGCEs in support of pre-award pricing decisions.

Module 13: Documenting the Pricing Decision — Pre-Negotiation Memorandum

• Identify the components and purpose of the pre-negotiation memorandum (PNM).
• Document the government's cost and price analysis findings in the PNM.
• Establish pre-negotiation objectives for price, cost elements, and profit.
• Apply FAR documentation requirements for pre-award pricing actions.

Module 14: Price Negotiation Memorandum (PNM) Preparation

• Explain the purpose and required content of the Price Negotiation Memorandum.
• Document negotiation results and the basis for the final negotiated price.
• Prepare a complete and compliant PNM in accordance with FAR Part 15 requirements.
• Recognize common deficiencies in PNM documentation and how to avoid them.

Module 15: Cost/Price Analysis for Contract Modifications

• Apply cost and price analysis principles to contract modifications and change orders.
• Identify when certified cost or pricing data is required for contract modifications.
• Evaluate the cost impact of proposed modifications on contract value and terms.
• Document modification pricing decisions consistent with applicable FAR requirements.

Module 16: Advanced Cost Analysis Case Studies and Exercises

• Apply cost analysis techniques to complex, multi-element contractor proposals.
• Integrate price analysis, cost analysis, and profit objectives in a unified evaluation.
• Identify and address analytical challenges common in advanced cost analysis scenarios.
• Document analysis findings and develop negotiation positions from case study results.

Module 17: Multi-Year and Long-Term Contract Pricing Considerations

• Identify pricing challenges unique to multi-year and long-term contracts.
• Apply economic price adjustment and escalation techniques to long-term proposals.
• Evaluate contractor proposed escalation factors for reasonableness.
• Recognize the impact of contract type selection on pricing risk in long-term agreements.

Module 18: Cost Analysis in a Competitive Environment

• Distinguish between price analysis and cost analysis in competitive acquisitions.
• Apply cost analysis techniques when adequate price competition is absent.
• Evaluate proposals in sole-source and limited-competition environments.
• Identify when additional cost data is needed despite a competitive acquisition setting.

Module 19: Audit Support and DCAA Coordination

• Explain the role of the Defense Contract Audit Agency (DCAA) in the pricing process.
• Identify when and how to request DCAA audit assistance during proposal evaluation.
• Interpret DCAA audit reports and apply findings to the cost analysis.
• Coordinate effectively with audit agencies to support pre-award and post-award pricing actions.

Module 20: Capstone Pricing Scenario and Practical Application

• Apply cost and price analysis skills developed throughout the course to a comprehensive pricing scenario.
• Integrate regulatory requirements, cost element analysis, and profit objectives in a complete evaluation.
• Prepare documentation supporting the pricing decision and negotiation outcome.
• Demonstrate proficiency in the analytical and documentation skills required of federal cost analysts.