CON 170: Fundamentals of Cost and Price Analysis

Course Description

This course begins with an in-depth review of the market research process and provides instruction to help students understand and analyze contractor pricing strategies. Students will learn to accomplish Cost-Volume-Profit analysis, calculate contribution margin estimates and develop cost estimating relationships in order to accomplish an effective price analysis pursuant to FAR Subpart 15.4. The course provides an overview regarding the regulations and processes regarding the use of cost analysis and for requiring certified cost and pricing data. After learning the basic elements of price and cost analysis, students will build and defend a pre-negotiation objective, including a minimum and maximum pricing objective with a Weighted Guidelines assessment. After successfully defending their pricing objectives, the students will practice face-to-face negotiations. This is a 10-day course targeted toward new hires to the contracting career field. Student performance will be assessed by graded exams on math fundamentals and applied course material as well as an exercise for student participation and completion of negotiations.

Course ID: EASC 0123P
Course Format: Classroom

Available Classroom Sections

There are no available sections for this course. Please check back later.

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CRN Start date End date Format Location Cost
14223 Jun 16, 2014 Jun 27, 2014 Classroom Atlanta, GA $2,000
14224 Jan 5, 2015 Jan 16, 2015 Classroom Atlanta, GA $2,250
15310 Feb 16, 2015 Feb 27, 2015 Classroom Atlanta, GA $2,250
15311 Jul 6, 2015 Jul 17, 2015 Classroom Atlanta, GA $2,250
15799 Nov 30, 2015 Dec 11, 2015 Classroom Atlanta, GA $2,250
16232 Mar 14, 2016 Mar 25, 2016 Classroom Atlanta, GA $2,250
16233 Jul 11, 2016 Jul 22, 2016 Classroom Atlanta, GA $2,250
17381 Mar 13, 2017 Mar 24, 2017 Classroom Atlanta, GA $2,250
17382 Jul 10, 2017 Jul 21, 2017 Classroom Atlanta, GA $2,250

Who Should Attend

New hires to the contracting career field

How You Will Benefit

  • Demonstrate the ability to execute fundamental quantitative pricing skills.

  • Successfully distinguish various seller pricing strategies given an acquisition situation.

  • Describe the Truth in Negotiations Act, including its purpose in mitigating government cost risk.

  • Identify the policies and procedures for applying the Cost Accounting Standards Board (CASB) rules and regulations to negotiated contracts and subcontracts.

  • Identify the contract cost principles and procedures.

Content

  • DAU mission briefing

  • Contracting with the government

  • Truth in Negotiations Act (TINA)

  • Cost Accounting Standards (CAS)

  • Cost principles

  • Market research

  • Fundamental quant problems

  • Price indexing

  • Shape, center, spread, trend

  • Net Present Value (NPV)

  • Cost estimating relationships

  • Cost volume analysis

  • Cost volume profit, contribution income, breakeven analysis, capacity

  • Contract types

  • Contract financing

  • Differences between price and cost analysis

  • Price analysis techniques

  • Price related factors

  • Cost analysis process, players, initiatives,

  • Direct and indirect costs

  • Evaluating direct costs

  • Indirect rates

  • Facilities Capital Cost of Money (FCCOM)

  • Profit (Weighted Guidelines)

  • Sweep, certificate of current cost and pricing data

  • Defective pricing

  • Price/cost analysis review scenarios

  • Fundamentals of negotiation

  • Face-to-face negotiation exercise

Materials

Provided

  • Student guide, assessment instruments, exercises and supplemental information

Additional Resources

Georgia Tech is an approved Defense Acquisition University (DAU) equivalency provider and offers DAU-equivalent training that will satisfy the FAC-C and DAWIA certification programs

The Contracting Education Academy at Georgia Tech (The Academy) is an approved equivalency training provider to the Defense Acquisition University (DAU) and provides continuing education training to Acquisition and Government Contracting professionals as well as to business professionals working for government contractors or pursuing opportunities in federal contracting

For Course-Related Questions

Please contact the course administrator: John "Chuck" Schadl