Government Contracting

Contract Proposal Analysis

• The objective of proposal analysis is to ensure that the final agreed-to price is fair and reasonable.

• The contracting officer is responsible for evaluating the reasonableness of the offered prices.

• Price analysis shall be used when certified cost or pricing data are not required.

• Cost analysis shall be used to evaluate the reasonableness of individual cost elements when certified cost or pricing data are required.

• Cost analysis may also be used to evaluate data other than certified cost or pricing data to determine cost reasonableness or cost realism when a fair and reasonable price cannot be determined through price analysis alone.

• The contracting officer may request the advice and assistance of other experts to ensure that an appropriate analysis is performed.

• 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.

• Price analysis is the process of examining and evaluating a proposed price without evaluating its separate cost elements and proposed profit.

• The Government may use various price analysis techniques and procedures to ensure a fair and reasonable price.

• Cost analysis is the review and evaluation of any separate cost elements and profit or fee in an offeror’s or contractor’s proposal, as needed to determine a fair and reasonable price or to determine cost realism.

• Technical analysis is the process of reviewing and evaluating the proposed types and quantities of materials, labor, processes, special tooling, equipment or real property to determine the need for and reasonableness of the proposed resources.

• Unbalanced pricing may increase performance risk and could result in payment of unreasonably high prices.Exemption from Contract Requirements

• This text refers to the exemption from contract requirements.

• The exemption applies to certain contract actions awarded under specific subparts.

• The subparts that qualify for the exemption are 19.5, 19.8, 19.13, 19.14, or 19.15.

• The exemption is based on section 1615 of the National Defense Authorization Act for Fiscal Year 2014 (Pub. L. 113-66).

• The exemption means that these contract actions are not subject to the requirements of paragraph (h).

• Paragraph (h) likely refers to a section of a larger document outlining contract requirements.

• The exemption may be based on the nature of the contract actions or the entities involved.

• The purpose of the exemption is not stated in this text.

• The exemption may have implications for the bidding and awarding process of contracts.

• The exemption may also have implications for the types of entities eligible for certain contract actions.

• The exemption may be subject to change based on future legislation or regulatory updates.

• The text does not provide further details on the specific contract actions or subparts covered by the exemption.

Test your knowledge on government contracting with this quiz focused on Contract Proposal Analysis and Exemption from Contract Requirements. Challenge yourself with questions related to the evaluation of proposed prices, cost analysis, and technical analysis, as well as understanding the exemptions from certain contract requirements. Sharpen your skills and learn more about the intricacies of government contracting with this informative quiz.