A FAR revision should be requested if an agency knows it will require a class deviation on a permanent basis Civilian agencies, other than NASA, must furnish copy of approved deviation to the FAR Secretariat, Affect only one contract action (A) Two or more responsible offerors, competing independently, submit priced offers that satisfy the Governments expressed requirement; (B) Award will be made to the offeror whose proposal represents the best value (see 2.101) where price is a substantial factor in source selection; and. (ii) The clause may be used when the total estimated contract or order value is below the thresholds identified in 15.408(n)(2)(i) and for any contract type, when the contracting officer determines that inclusion of the clause is appropriate. (h) Review and justification of pass-through contracts. (i) Acquisitions at or below the simplified acquisition threshold; (ii) Construction or architect-engineer services under part 36; (iv) Service contracts where supplies are not required; (v) Acquisitions of commercial products and commercial services; and. Select and defend the tools you think are more effective in promoting the national interest. After completing the negotiation, the contracting officer shall provide the ACO a report of any identified uneconomical or inefficient practices, together with a report of correction or disposition agreements reached with the contractor. (1) When the contracting officer determines that prices agreed upon are based on adequate price competition (see standards in paragraph (c)(1) of this subsection); (2) When the contracting officer determines that prices agreed upon are based on prices set by law or regulation (see standards in paragraph (c)(2) of this subsection); (3) When a commercial product or commercial service is being acquired (see standards in paragraph (c)(3) of this subsection); (4) When a waiver has been granted (see standards in paragraph (c)(4) of this subsection); or. . Capacity is an estimated five-year dollar amount of what an individual could potentially give to the non-profit industry as a whole. Enter the number of units completed during the period for which experienced costs of production are being submitted. (1) Structured approaches (see paragraph (d) of this subsection) for determining profit or fee prenegotiation objectives provide a discipline for ensuring that all relevant factors are considered. Enter your redetermination proposal amount. Consequently, award of any lower-tier subcontract expected to exceed the certified cost or pricing data threshold requires the submission of certified cost or pricing data unless-, (i) An exception otherwise applies to the subcontract; or. 1.5 Agency and Public Participation The median Series A deal had a pre-money valuation of $20 million. (1) When a prime contractor includes defective subcontract data in arriving at the price but later awards the subcontract to a lower priced subcontractor (or does not subcontract for the work), any adjustment in the prime contract price due to defective subcontract data is limited to the difference (plus applicable indirect cost and profit markups) between the subcontract price used for pricing the prime contract, and either the actual subcontract price or the actual cost to the contractor, if not subcontracted, provided the data on which the actual subcontract price is based are not themselves defective. What are the five types of money and their purposes? (2) The contracting officer shall not request a separate preaward audit of indirect costs unless the information already available from an existing audit, completed within the preceding 12 months, is considered inadequate for determining the reasonableness of the proposed indirect costs ( 41 U.S.C.4706 and 10 U.S.C. The estimate should consider the technical content of the program described in the CNS, UA, acquisition strategy, and test strategy. Exhibit 519.104 depending upon the type of appraisaL No changes to the appraisal . The prime contractor is responsible for updating a prospective subcontractors data. a detailed analysis of the various cost elements associated with the acquisition that is used to estimate its cost or price. Citation of the FAR that it prescribes Depending on the complexity of the acquisition, the evaluation process can last anywhere from a few days to several months. (3) The auditor is responsible for the scope and depth of the audit. The contracting officer should require such information in all other negotiated contracts when appropriate. What are the two major types of contracts? You can usually find these by doing a google search for something like: Depending upon the estimated dollar value of the acquisition: the contracting officer or the source selection authority. Limited competition required to meet requirements This factor should compensate contractors proportionately for assuming greater cost risks. (D) The application of audited or negotiated indirect cost rates, labor rates, and cost of money or other factors. . (vii) Analysis of data other than certified cost or pricing data (as defined at 2.101) provided by the offeror. acquisition costs proposed is in excess of $1 million, 10 percent of all remaining . PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM (c) Contracting officer responsibilities. . (5) An offset shall be allowed only in an amount supported by the facts and if the contractor-, (i) Certifies to the contracting officer that, to the best of the contractors knowledge and belief, the contractor is entitled to the offset in the amount requested; and. Acquisition Premium: An acquisition premium is the difference between the estimated real value of a company and the actual price paid to obtain it. trade-offs made or relied on by the KO, including benefits associated with additional costs. Urgency Should-cost reviews differ from traditional evaluation methods because they do not assume that a contractors historical costs reflect efficient and economical operation. (1) Cost analysis is the review and evaluation of any separate cost elements and profit or fee in an offerors or contractors proposal, as needed to determine a fair and reasonable price or to determine cost realism, and the application of judgment to determine how well the proposed costs represent what the cost of the contract should be, assuming reasonable economy and efficiency. (vii) Other conditions (e.g., changes in accounting systems, management, or business activity). (1) When the program is to be incorporated in the contract and the design status of the product being acquired does not permit accurate precontract identification of major items or work efforts, the contracting officer shall notify the prospective contractor in writing that these items or efforts, when identifiable, shall be added under the clause at 52.215-9, Changes or Additions to Make-or-Buy Program. The initial cost estimate must be completed before entry into the execution phase and must be updated annually. Disposition of the action should be documented. Quarterly B. The dollar value will be supported by appropriate documentation. CHAPTER 35). Our acquisition regulations provide foundation on which the acquisition is based and legally delegate which type of authority to the contracting . Option fulfills an existing need (iv) Information relative to the business, technical, production, or other capabilities and practices of an offeror. . When this result is negative, place the amount in parentheses. Specify the total estimated dollar value of the acquisition, inclusive of options, and the total performance/delivery period. An acquisition plan may have numerous elements as listed in FAR 7.105; depending upon the estimated cost of the acquisition, these elements include: Statement of need and background Applicable conditions Cost Life cycle costs if applicable Capability or performance Delivery or performance requirements Wiki User 2017-06-15 17:26:11 Currently, acquisition programs are grouped and then managed at the Office of the Secretary of Defense (OSD) by dollar value depending on the dollar value, the OSD provides different levels of oversight and different management processes. the contracting officer or the source selection authority INVOICE: Wide Area Work Flow (WAWF) is a Paperless Contracting . 45 day response time for R&D actions that exceed the SAT, Contracting Officers must publicize contract actions in order to 1. (A) Use the basic clause in solicitations and contracts when the estimated value equals or exceeds $100,000, but is less than $191,000 The K values are based on 1968 dollars. Risks Requirements Contracts (i) Except as provided in paragraph (n)(2)(ii), the contracting officer shall insert the clause 52.215-23, Limitations on Pass-Through Charges, in solicitations and contracts including task or delivery orders as follows: (A) For civilian agencies, insert the clause when-, (1) The total estimated contract or order value exceeds the simplified acquisition threshold as defined in section 2.101 and, (2) The contemplated contract type is expected to be a cost-reimbursement type contract as defined in subpart 16.3; or, (1) The total estimated contract or order value exceeds the threshold for obtaining cost or pricing data in 15.403-4; and, (2) The contemplated contract type is expected to be any contract type except-. March 31, 2021. . Past experience -Price analysis 8(a) Programs Enter total incurred costs (Total of Columns (8), (9), and (10)). To the maximum extent practicable (b)(1) The extent of market research will vary, depending on such factors as urgency, estimated dollar value, complexity, and past experience. (4) Subject to paragraphs (b)(5) and (6) of this subsection, the contracting officer shall allow an offset for any understated certified cost or pricing data submitted in support of price negotiations, up to the amount of the Governments claim for overstated pricing data arising out of the same pricing action (e.g., the initial pricing of the same contract or the pricing of the same change order). For interorganizational transfers priced at cost, provide a separate breakdown of cost elements. Lowest Price Technically Acceptable (LPTA) (4) Patent application serial numbers, or other basis on which the royalty is payable. Such offsets need not be in the same cost groupings (e.g., material, direct labor, or indirect costs). The prime contractor is responsible for managing contract performance, including planning, placing, and administering subcontracts as necessary to ensure the lowest overall cost and technical risk to the Government. At the same point in time, the thirty-year treasury bond rate in the United States was 8.00%. See HHSAR 306.304(a)(1) and 313.501(a)(2)(i) for additional information regarding CO approval of a JOFOC in this dollar range. If such alternative approaches are selected, any resulting solicitations shall be issued in accordance with the competition requirements under FAR part 6; (ii) Make a written determination that the contracting approach selected is in the best interest of the Government; and. Sole Source The contracting officer shall prepare a memorandum documenting both the determination and any corrective action taken as a result. The contracting officer shall insert the clause at 52.215-9, Changes or Additions to Make-or-Buy Program, in solicitations and contracts when it is contemplated that a make-or-buy program will be incorporated in the contract. (b) The certificate does not constitute a representation as to the accuracy of the contractors judgment on the estimate of future costs or projections. The services contracting that the Gov. Requests for updated offeror data should be limited to data that affect the adequacy of the proposal for negotiations, such as changes in price lists. 3505(b)). (D) A statement that interest will continue to accrue until repayment is made. (vii) Personnel with the required skills are available or can be assigned for the duration of the should-cost review. Jimmy Snyder Musician, The fact that a price is included in a catalog does not, in and of itself, make it fair and reasonable. The scope and depth of the analysis supporting the objectives should be directly related to the dollar value, importance, and complexity of the pricing action. (a) Purchase supplies and services from responsible sources at fair and reasonable prices. Healy, Palepu, and Ruback (1997) argue that advantages of using a sample of large acquisitions over a random sample include (1) the dollar value of the Quantity deleted from inventory 11. assignment standards and adequately supports the value estimate, and specifically and WHITEHOUSE STATION, N.J., Dec. 14, 2020 (GLOBE NEWSWIRE) -- Murphy USA announced an agreement to acquire QuickChek Corporation ("QuickChek") in an all-cash transaction for . This data may include history of sales to non-governmental and governmental entities, cost data, or any other information the contracting officer requires to determine the price is fair and reasonable. When adequate price competition exists (see 15.403-1(c)(1)), generally no additional data are necessary to determine the reasonableness of price. what makes muscle tissue different from other tissues? Established requirement to use "competitive procedures" in acquiring supplies/services , when the estimated value equals or exceeds $25,000, but is less than $182,000 , unless an exception at FAR 25.401 or 225.401 applies. Looking for U.S. government information and services? (6) If a change or modification calls for essentially the same type and mix of work as the basic contract and is of relatively small dollar value compared to the total contract value, the contracting officer may use the basic contracts profit or fee rate as the prenegotiation objective for that change or modification. "Make item," as used in this subsection, means an item or work effort to be produced or performed by the prime contractor or its affiliates, subsidiaries, or divisions. . INVOICE: Wide Area Work Flow (WAWF) is a Paperless Contracting. What is the depreciation expense for 2019? When an overhead should-cost review is conducted, a separate audit report is required. Affect more than one contract action The scope of a should-cost review can range from a large-scale review examining the contractors entire operation (including plant-wide overhead and selected major subcontractors) to a small-scale tailored review examining specific portions of a contractors operation. requires that funds appropriated by Congress be used only for the programs and purposes for which the appropriation was made. The HCA may consider waiving the requirement if the price can be determined to be fair and reasonable without submission of certified cost or pricing data. Research, Development, Test and Evaluation (RDT&E) - 2 years When required by the contracting officer, data other than certified cost or pricing data may be submitted in the offerors own format unless the contracting officer decides that use of a specific format is essential for evaluating and determining that the price is fair and reasonable and the format has been described in the solicitation. that, in the Government's estimation, provides the greatest overall benefit in response to the requirement. 1. The documentation shall include a written finding that certified cost or pricing data are necessary to determine whether the price is fair and reasonable and the facts supporting that finding. Copies of updated information that will significantly affect the audit should be provided to the auditor by the contracting officer. The truck is estimated to have a residual value of $4,000 and a useful life of 4 years and 120,000 miles. Identification of the . Consent to subcontracts and review of contractors purchasing systems are separate actions covered in part 44. Q: Depending upon the estimated dollar value of the acquisition and agency procedures the decision to award will be made by? 3841). Acquisition Streamlining (B) The contractor assumes the greatest cost risk in a closely priced firm-fixed-price contract under which it agrees to perform a complex undertaking on time and at a predetermined price. (ii) When it is necessary to have written technical and audit reports, the contracting officer shall request that the audit agency concurrently forward the audit report to the requesting contracting officer and the administrative contracting officer (ACO). the parent combines the Equity In Subsidiary Earnings with the subsidiary company's revenues less expenses. Also submit any information reasonably required to explain your estimating process (including the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data, and the nature and amount of any contingencies included in the price). Depending upon the estimated dollar value of the acquisition: the contracting officer or the source selection authority. (h)Ensuring that the principles of this subpart are used, as appropriate, for those acquisitions that do not require a written plan as well as for those that do. These reviews are accomplished by a multi-functional team of Government contracting, contract administration, pricing, audit, and engineering representatives. If there has been a significant time lapse between the last acquisition and the present one, if the terms and conditions of the acquisition are significantly different, or if the reasonableness of the prior price is uncertain, then the prior price may not be a valid basis for comparison. 15.402 Pricing policy. (5) If certified cost or pricing data were not required in the case of any price negotiation exceeding the certified cost or pricing data threshold, the exception used and the basis for it. (1) Depending upon the extent and complexity of the field pricing review, results, including supporting rationale, may be reported directly to the contracting officer orally, in writing, or by any other method acceptable to the contracting officer. 3701(2) and 41 U.S.C.3501(a)(3)). 4. (b) Adequate price competition. For acquisitions with a total estimated value of $100M or more, the SSA shall be an individual other than the PCO. chapter 35). (A) This factor measures the degree of cost responsibility and associated risk that the prospective contractor will assume as a result of the contract type contemplated and considering the reliability of the cost estimate in relation to the complexity and duration of the contract task. (4) Replace the basic provision with its Alternate IV if certified cost or pricing data are not expected to be required because an exception may apply, but data other than certified cost or pricing data will be required as described in 15.403-3. 6.302-6 - National security -May be IDIQ contracts or contracts with annual options Policy (3) Format for submission of data supporting forward pricing rate agreements. (vi) Corporate reorganizations, mergers, acquisitions, or takeovers. (iv) Reasons for categorizing items and work efforts as "must make" or "must buy," and proposing to "make" or to "buy" those categorized as "can either make or buy." The amount of time necessary for the planning process is dependent upon the dollar value, risk, complexity, and criticality of the proposed purchase. The estimated cost of equity for Glaxo in December 1994 was Cost of Equity = 8.00% + 1.10 (5.50%) = 14.05% This is the cost of equity, if cash flows are estimated in dollars. -Sufficient justification for the authority cited (ii) Comparison of the proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items. research? Typically this is determined by a dollar value cut off based on the size of the Target - for example, all agreements which involve (or which could potentially involve) more than $50,000 in value or which the Company's operations are substantially dependent. (c) Any contractor or subcontractor that is required to submit certified cost or pricing data also shall obtain and analyze certified cost or pricing data before awarding any subcontract, purchase order, or modification expected to exceed the certified cost or pricing data threshold, unless an exception in 15.403-1(b) applies to that action. Requiring certified cost or pricing data (10 U.S.C. (3) Cost analysis shall be used to evaluate the reasonableness of individual cost elements when certified cost or pricing data are required. (ii) The waiver specifically includes the subcontract and the rationale supporting the waiver for that subcontract. This provision also provides instructions to offerors on how to request an exception from the requirement to submit certified cost or pricing data. (i) Contractor effort. Before applying profit or fee factors, the contracting officer shall exclude from the pre-negotiation cost objective amounts the purchase cost of contractor-acquired property that is categorized as equipment, as defined in FAR 45.101, and where such equipment is to be charged directly to the contract. The information required from a contractor in a make-or-buy program shall be confined to those major items or work efforts that normally would require company management review of the make-or-buy decision because they are complex, costly, needed in large quantities, or require additional equipment or real property to produce. Actual annual usage was 5,500 hours . Include the current estimates of what the cost would have been to complete the deleted work not yet performed (not the original proposal estimates), and the cost of deleted work already performed. Plan of Action , when the estimated value equals or exceeds $25,000, but is less than $182,000 , unless an exception at FAR 25.401 or 225.401 applies. -Price competition Depending upon the estimated dollar value of the acquisition: the contracting officer or the source selection authority. Fixed price contracts Acquisition Premium: An acquisition premium is the difference between the estimated real value of a company and the actual price paid to obtain it. (iii) Use of parametric estimating methods/application of rough yardsticks (such as dollars per pound or per horsepower, or other units) to highlight significant inconsistencies that warrant additional pricing inquiry. The Contracting Officer may require you to submit cost or pricing data in support of proposals in lower amounts. AF PGI 5315 Contracting by Negotiation AF PGI 5315.209-90 Solicitation Provisions and Contract Clauses (a) The contracting officer may include language in Section L (or equivalent in a solicitation for the acquisition of a commercial item) substantially the same as the following when a DD Form 254, Contract Security Classification Specification is a requirement at time of award: "The offeror . Also provide data showing the basis for establishing source and reasonableness of price. Where are Acquisition plans found in the FAR? acquisition costs proposed is in excess of $1 million, 10 percent of all remaining . 2. Also show how the costs would be allocated to the units at their various stages of contract completion. Planning the purchase should begin at the earliest practicable time. Seven statutory exceptions. Column(5) minus Column(4) equals Column(6). The ACO or the auditor, as appropriate, shall notify the contracting officer immediately if the data provided for review is so deficient as to preclude review or audit, or if the contractor or offeror has denied access to any records considered essential to conduct a satisfactory review or audit. Enter the cutoff date required by the contract, if applicable. 50% of the cash consideration payable by the Company for the Acquisition will be lent by Sure Victor to China Rongsheng, a subsidiary of Value Link and therefore a subsidiary of the Company upon . If the contractor proposes to reverse the categorization of such items during contract performance, the contract price shall be subject to equitable reduction. The ARB Coordinators will review packages, schedule and facilitate Pre-ARB and ARB meetings, capture discussions in board minutes, distribute minutes, and coordinate and document approvals/disapprovals. Approvals needed. Direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit; and Unless the acquisition requires synopsizing: Enter the net cost to be deleted, which is the estimated cost of all deleted work less the cost of deleted work already performed. Increase in Equity Value. In addition, provide a summary of your cost analysis and a copy of certified cost or pricing data submitted by the prospective source in support of each subcontract, or purchase order that is the lower of either $15 million or more, or both more than the pertinent certified cost or pricing data threshold and more than 10 percent of the prime contractor's proposed price. (i) A price is based on adequate price competition when. With this deal, the combined value of the company amounts to $1.3 billion. (6) Recommendations or conclusions regarding the Governments review or analysis of an offerors or contractors proposal shall not be disclosed to the offeror or contractor without the concurrence of the contracting officer. L. 110-181 ). Pronouncements in the form of periodic rulings, reviews, or similar actions of a governmental body, or embodied in the laws, are sufficient to set a price. Purchase Card and is not required to be advertised. (ii) Data other than certified cost or pricing data such as-. (7) The Air Force Institute of Technology (AFIT) and the Federal Acquisition Institute (FAI) jointly prepared a five-volume set of Contract Pricing Reference Guides to guide pricing and negotiation personnel. ** Insert the day, month, and year when price negotiations were concluded and price agreement was reached or, if applicable, an earlier date agreed upon between the parties that is as close as practicable to the date of agreement on price. (b) Whenever field pricing assistance has been obtained, the contracting officer shall forward a copy of the negotiation documentation to the office(s) providing assistance. Which of the following individuals has expressed authority to enter into and administer contracts and is responsible for ensuring? Enter total estimated cost (Total of Columns (11) and (12)). As well, generally internally generated goodwill and other intangible assets can not be recognized on the balance sheet. They are available via the internet at http://www.acq.osd.mil/dpap/cpic/cp/contract_pricing_reference_guides.html. (k) Notification of Ownership Changes. The range of data from which the K and m values are derived in the primary sources should be observed in order to use them in making cost estimates. for supplies or services currently being provided by a small business and the proposed acquisition is of a quantity or estimated dollar value, the magnitude of which makes it unlikely that small businesses can compete . Describe what illustrations should show about a product. Applies if: -Helps the agency to meet their small business goals estimated value, etc., will not be made until each procurement is initiated. Capital assets should be valued at cost including all ancillary charges necessary to place the asset in its intended location and condition for use. Option is the most advantageous method of fulfilling the need 2. (C) For acquisitions funded by DoD, NASA, or Coast Guard such modifications of a commercial product are not exempt from the requirement for submission of certified cost or pricing data on the basis of the exemption provided for at 15.403-1(c)(3) if the total price of all such modifications under a particular contract action exceeds the greater of the threshold for obtaining certified cost or pricing data in 15.403-4 or 5 percent of the total price of the contract at the time of contract award. What are the two types of market research and how do they differ? fiscal policy. 3501: (A) When purchasing services that are not offered and sold competitively in substantial quantities in the commercial marketplace, but are of a type offered and sold competitively in substantial quantities in the commercial marketplace, they may be considered commercial services (thus meeting the purpose of 41 U.S.C.chapter 35 and 10 U.S.C.