* All fees are exclusive of vat ** PREMIUM - Customize your learning experience
In this course, you’ll learn the cost and pricing knowledge and skills essential for making sound contracting negotiation decisions. Building on the basic skills learned in Level I contracting courses and on-the-job experiences, Cost Analysis and Negotiation Techniques introduces the techniques needed to analyze cost proposals to establish pre-negotiation objectives for the various elements of cost contained in the proposals. Through an integrated case study, participants will demonstrate their ability to calculate a cost objective and a price/cost objective and determine their pre-negotiation position based on their calculations.
What Do Participants Learn?
Determine when cost analysis should be used
Identify the use and application of a contract audit
Outline the process for preparing to conduct contract negotiations
Explain the implications of having an acceptable or unacceptable estimating and accounting, purchasing and internal control systems
Determine a pre-negotiation objective for direct material, direct labor, and other direct costs
Determine a pre-negotiation objective for indirect costs, facilities cost of money and profit/fee
Who Should Attend?
Those who are interested in the field
What Will the Learning Experience Include?
Comprehensive pre-program activities include:
Web-based information forms & surveys completed by attendee.
Direct consultation with the attendee about the expectations.
During the training, participants engage in data, activities, and conversations that lead to insight and knowledge.
Participants learn from expert trainers who have both academic and business experiences.
Highly applicable training content & instructive activities for adding depth to training topics.
**A half-day site visit for integrating the experience & plan next steps. Opportunities to provide connections, ideas & support.
Explore & Practice
Apply & sustain the learning experience by using this ongoing support:
To ensure participant has new skills or behavior progress.
Optional, fee-based mentoring & coaching with the trainer.
Training materials & additional documents (e-books, pdf files, presentations and articles)
Evaluate your training experience by giving us feedbacks and help us to reach our organizational goals.
Section One: Cost Analysis Basics and Contract Audits
What is the cost analysis?
The role of cost analysis in contract pricing
Types of contract proposal analysis
Truth in Negotiations Act
Benefits of using cost analysis
What is an audit?
The players in the contract audit process
Field pricing assistance
Defense Contract Audit Agency (DCAA) support
Types of audits and services
DCAA audit reports
Section Two: Internal Control Systems and Contract Negotiation Strategies
Importance of contractor internal controls
Cost accounting system
Approval, disapproval, and changes to internal control systems
What are negotiations?
Factors involved in successful negotiations
Possible outcomes of negotiations
Attitudes leading to successful negotiations
Key negotiation terms
Steps in the win/win process
Section Three: The Big Picture View of Contract Analysis and Statistics in Contract Pricing
Resource-constrained vs. schedule-constrained processes
Customer process inputs to program/project management
Seller process inputs to program/project management
Identification of statistical terms
Contract situation where statistical analysis is appropriate
Measures of central tendency
Measuring the dispersion of data sets
Establishing confidence intervals
Section Four: Simplified Regression Analysis and Analyzing Direct Labor Costs
Regression analysis defined
Different regression analysis methods
Coefficient of determination
How well the regression equation fits the data
Establishing and using a prediction interval
When advanced regression analysis is required
Defining direct labor
Direct labor classifications
Major types of direct labor
Planning for further analysis
Cost Estimating Relationships (CERs)
Using industry and company data to estimate future labor rates
Section Five: Analyzing Direct Material Costs and Indirect Costs
Directly associated materials
Planning for further analysis
Estimating methodologies used in developing direct materials estimates
Detailed quantity estimates
Unit cost estimates
Subcontract pricing responsibilities
importance of proper identification and treatment of direct costs
Typical other direct costs
General considerations for other direct costs
Analysis of specific other direct costs elements
Cost pools and cost bases utilized in developing indirect rates
Methods used to calculate indirect cost rates
Allowability of costs used in indirect cost rates
Presentation of allowable and unallowable costs for indirect costs