However, please be advised that the increase in the simplified acquisition threshold to $250,000 does not apply for Buy America purposes, as the small purchase amount is established at $150,000 in FTA's . (v) Consider the guidance in section 3.3, chapter 3, volume I, of the Contract Pricing Reference Guide cited at 15.404-1(a)(7) to determine the data an offeror shall be required to submit. The contracting officer should require such information in all other negotiated contracts when appropriate. -Consider soliciting at least 3 sources true ETHICS PROCUREMENT PERSONNEL: You are a COR working on the third year of a 5-year contract (football tickets) "We laugh at [venture] firms that . (3) Upon the request of a contractor that was required to submit certified cost or pricing data in connection with a prime contract entered into before July 1, 2018, the contracting officer shall modify the contract, without requiring consideration, to reflect a $2 million threshold for obtaining certified cost or pricing data on subcontracts entered on and after July 1, 2018. Explain the basis for the estimates, including identification of any provision for experienced or anticipated allowances, such as shrinkage, rework, design changes, etc. This subfactor measures how much the indirect costs contribute to contract performance. Copies of updated information that will significantly affect the audit should be provided to the auditor by the contracting officer. (4) The requirement for necessary preaward or postaward access to offerors records. DoD, GSA, and NASA published an interim rule in the Federal Register at 75 FR 34277 on June 16, 2010, to implement section 826, Market Research, of the National Defense Authorization Act for Fiscal Year 2008 ( Pub. (A) Material acquisition. -Mandatory Federal Supply Schedule (www.gsaadvantage.gov) (C) In evaluating assumption of cost risk, contracting officers shall, except in unusual circumstances, treat time-and-materials, labor-hour, and firm-fixed-price, level-of-effort term contracts as cost-plus-fixed-fee contracts. (8) The most significant facts or considerations controlling the establishment of the prenegotiation objectives and the negotiated agreement including an explanation of any significant differences between the two positions. (1) Conduct appropriate cost or price analyses to establish the reasonableness of proposed subcontract prices; (2) Include the results of these analyses in the price proposal; and. However, proposals shall be evaluated using the criteria in the solicitation, and the offered prices shall not be adjusted as a result of the analysis. It was driven 18,000 miles in 2018 and 32,000 miles in 2019. (iv) Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements. (a) Purchase supplies and services from responsible sources at fair and reasonable prices. Full and Open Competition PART 2--DEFINITIONS OF WORDS AND TERMS ***Insert the day, month, and year of signing, which should be as close as practicable to the date when the price negotiations were concluded and the contract price was agreed to. Form USM-416, Individual Acquisition Planning, must be completed for each new contract action above the dollar threshold of $100,000. The contracting officer should consider whether a contractor or subcontractor has an approved purchasing system, has performed cost or price analysis of proposed subcontractor prices, or has negotiated the subcontract prices before negotiation of the prime contract, in determining the reasonableness of the prime contract price. on the contractor? In order to foster achievement of program objectives, each agency may include additional factors in its structured approach or take them into account in the profit analysis of individual contract actions. Acquisition Detail - purchase order number, donation source or gift source 9. What is the policy for providing for full and open competition? (2) Under cost-reimbursement contracts and under all fixed-price contracts except firm-fixed-price contracts and fixed-price contracts with economic price adjustment, payments to subcontractors that are higher than they would be had there been no defective subcontractor certified cost or pricing data shall be the basis for disallowance or nonrecognition of costs under the clauses prescribed in 15.408(b) and (c). (2) In arriving at a price adjustment, the contracting officer shall consider the time by which the certified cost or pricing data became reasonably available to the contractor, and the extent to which the Government relied upon the defective data. (i) Some initial production has already taken place; (ii) The contract will be awarded on a sole source basis; (iii) There are future year production requirements for substantial quantities of like items; (iv) The items being acquired have a history of increasing costs; (v) The work is sufficiently defined to permit an effective analysis and major changes are unlikely; (vi) Sufficient time is available to plan and adequately conduct the should-cost review; and. (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. 113-66)). Price Changes. Specify the total estimated dollar value of the acquisition, inclusive of options, and the total performance/delivery period. (3) The objective of the overhead should-cost review is to evaluate significant indirect cost elements in-depth, and identify and recommend corrective actions regarding inefficient and uneconomical practices. (iii) Federal socioeconomic programs. When prospective contractors are required to submit proposed make-or-buy programs, the solicitation shall include-, (1) A statement that the program and required supporting information must accompany the offer; and. When is an indefinite delivery contract appropriate? Sole Source This entitlement is ensured by including in the contract one of the clauses prescribed in 15.408(b) and (c) and is set forth in the clauses at 52.215-10, Price Reduction for Defective Certified Cost or Pricing Data, and 52.215-11, Price Reduction for Defective Certified Cost or Pricing Data-Modifications. Such techniques and procedures include the following: (i) Verification of cost data or pricing data and evaluation of cost elements, including-. Define working capital. (e) If certified cost or pricing data are requested by the Government and submitted by an offeror, but an exception is later found to apply, the data shall not be considered certified cost or pricing data and shall not be certified in accordance with this subsection. -Requires approvals . From 1993 to 2001, Cisco acquired 71 companies, at an average price of approximately $350 million. Amount of info already available. (iii) Use the clause 52.215-23 with its Alternate I when the contracting officer determines that the prospective contractor has demonstrated that its functions provide added value to the contracting effort and there are no excessive pass-through charges. Acquisition planning commences with a legislated directive or when a concept or a need is identified. (iii) The modification of any sealed bid or negotiated contract (whether or not certified cost or pricing data were initially required) or any subcontract covered by paragraph (a)(1)(ii) of this subsection. Acquisition premium represents the increased . Designated at the agency and each procuring activity and responsible for: Unless an exception under 15.403-1(b)(1) or (2) applies, the contracting officer shall require that the data submitted by the offeror include, at a minimum, appropriate data on the prices at which the same item or similar items have previously been sold, adequate for determining the reasonableness of the price. This dollar range is current as of the date of issuance of interim acquisition policy memorandum No. This approach has been constantly refined over the years, without having produced any noticeable Increase in Value of Equity as ROE Increase. (C) Conversion-related indirect costs. true ETHICS PROCUREMENT PERSONNEL: You are a COR working on the third year of a 5-year contract (football tickets). a detailed analysis of the various cost elements associated with the acquisition that is used to estimate its cost or price. (3) The clauses referred to in paragraph (b)(1) of this subsection recognize that the Governments right to a price adjustment is not affected by any of the following circumstances: (i) The contractor or subcontractor was a sole source supplier or otherwise was in a superior bargaining position; (ii) The contracting officer should have known that the certified cost or pricing data in issue were defective even though the contractor or subcontractor took no affirmative action to bring the character of the data to the attention of the contracting officer; (iii) The contract was based on an agreement about the total cost of the contract and there was no agreement about the cost of each item procured under such contract; or. Request for Quotation - Simplified Acquisition Procedures - FAR Part 13 Price analysis should be used to verify that the overall price offered is fair and reasonable. (4) Replace the basic clause 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. -Promoting full and open competition L. 85-804 shall be accomplished as expeditiously as practicable, consistent with the care, restraint, and . collecting and analyzing information about capabilities within the market to satisfy agency needs, The extent of market research will vary, depending upon factors such as: What is the cost of 5.55.55.5 pounds of chicken breasts if they cost $3.49\$3.49$3.49 per pound? The statement of applicability may state that the information in the part applies to a distinct set of acquisitions, does not apply to a distinct set of acquisitions, or both. ARB Coordinator. However, because of the potential impact on small business participation, before conducting an acquisition that is a consolidation of requirements with an estimated total dollar value exceeding $2 million, the senior procurement executive (SPE) or chief acquisition officer (CAO) shall make a written determination that the consolidation is . Contracting officer may exercise options only after determining that- (b) Definition. The head of the contracting activity shall justify the requirement for certified cost or pricing data. 6.302-6 - National security 2377. Agencies shall ensure updated information that changes a contracting officers prior final determination is reported into the FAPIIS module of Contractor Performance Assessment Reporting System (CPARS) in the event of a. -Statutory requirement (ii) Consider whether award of the contract will result in paying unreasonably high prices for contract performance. Purpose. While the particular elements to be analyzed are a function of the contract work task, elements such as manufacturing, pricing and accounting, management and organization, and subcontract and vendor management are normally reviewed in a should-cost review. and depending on the size of the acquisition or disposition, may require . When cost analysis is required, the contracting officer shall document the pertinent issues to be negotiated, the cost objectives, and a profit or fee objective. Depending on your system, you must provide breakdowns for the following basic cost elements, as applicable: (2) All Other. -Description of the supply/service COR 106 Flashcards | Quizlet It is used for the writing soliciations and contracts. "Upon closing this transaction, we will have acquired more than 55,000 net acres of highly productive, oil-weighted inventory in Howard and western Glasscock counties in just two years . High School For Environmental Studies Ceeb Code, Prohibition on obtaining certified cost or pricing data (10 U.S.C. While these acquisitions are "accretive" to EPS, they are highly dilutive to cash flows and ACHC's balance sheet. (c) Standards for exceptions from certified cost or pricing data requirements. Annual run rate synergies of $28 million are expected to be achieved by the third year. (1) Should-cost reviews are a specialized form of cost analysis. However, the contracting officer may agree to these as "make items" if an overall lower Governmentwide cost would result or it is otherwise in the best interest of the Government. 6.302-1 - Only one responsible source and no other supplies or services will satisfy agency requirements -Optional use Federal Supply Schedules -Solicit quotations based on personal preference. . Acquisition valuation involves the use of multiple analyses to determine a range of possible prices to pay for an acquisition candidate. The threshold for obtaining certified cost or pricing data is $750,000 for prime contracts awarded before July 1, 2018, and $2 million for prime contracts awarded on or after July 1, 2018.When a clause refers to this threshold, and if the threshold is adjusted for inflation pursuant to 1.109(a), then pursuant to 1.109(d) the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment. This acquisition is conducted under the authority of 41 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 For more information on peer reviews, see DFARS 201.170 and AFARS 5101.170. . FAR 5.101(a)(1) Proposed contract actions expected to exceed $25,000synopsize in GPE (Government-wide Point of Entry), Item that has been or will be sold to the general public; may required minor government directed modifications. Milestones (at which decisions should be made) Determining Seed-Round Valuation for Startups - Silicon Valley Bank CONTRACT AWARD: Depending upon the estimated dollar value of the acquisition:. Affect more than one contract action If the contracting officer determines that a product or service claimed to be commercial is not, and that no other exception or waiver applies (e.g., the acquisition is not based on adequate price competition; the acquisition is not based on prices set by law or regulation; and the acquisition exceeds the threshold for the submission of certified cost or pricing data at 15.403-4(a)(1)) the contracting officer shall require submission of certified cost or pricing data. Estimated dollar value The contracting officer shall, when contracting by negotiation, insert the clause at 52.215-11, Price Reduction for Defective Certified Cost or Pricing DataModifications, in solicitations and contracts when it is contemplated that certified cost or pricing data will be required from the contractor or any subcontractor (see 15.403-4) for the pricing of contract modifications, and the clause prescribed in paragraph (b) of this section has not been included. (C) There is no finding that the price of the otherwise successful offeror is unreasonable. Government -wide acquisition contracts (GWACS): (1) The contractor shall submit, or cause to be submitted by the subcontractor(s), certified cost or pricing data to the Government for subcontracts that are the lower of either-, (i) $15 million or more; or. (1) Use the clause with its Alternate I to specify a format for certified cost or pricing data other than the format required by Table 15-2 of this section; (2) Use the clause with its Alternate II if copies of the proposal are to be sent to the ACO and contract auditor; (3) Use the clause with its Alternate III if submission via electronic media is required; and. Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. (ii) Contract cost risk. (ii) The contracting officers signature on the price negotiation memorandum or other documentation supporting determination of fair and reasonable price documents the contracting officers determination that the statutory price or fee limitations have not been exceeded. (2) At a minimum, the technical analysis should examine the types and quantities of material proposed and the need for the types and quantities of labor hours and the labor mix. estimates? 2. Negotiation of extremely low profits, use of historical averages, or automatic application of predetermined percentages to total estimated costs do not provide proper motivation for optimum contract performance. . Price adjustment amounts must consider both increases and decreases (e.g., a $500,000 modification resulting from a reduction of $1,500,000 and an increase of $1,000,000 is a $2,500,000 pricing adjustment exceeding the $2,000,000 threshold). (iv) Verification that the offeror's cost submissions are in accordance with the contract cost principles and procedures in part 31 and, when applicable, the requirements and procedures in 48 CFR chapter 99, Cost Accounting Standards. In order to afford an opportunity for corrective action, the contracting officer should give the prime contractor reasonable advance notice before determining to reduce the prime contract price. (c) The contracting officer and contractor are encouraged to reach a prior agreement on criteria for establishing closing or cutoff dates when appropriate in order to minimize delays associated with proposal updates. Justification and agency approval must be documented in the contract file. Not Exceeding $700K - Contracting Officer -Foreign Military Sales (if source directed) (2) Consider losses or profits realized or anticipated under other contracts. (1) If, after award, certified cost or pricing data are found to be inaccurate, incomplete, or noncurrent as of the date of final agreement on price or an earlier date agreed upon by the parties given on the contractor's or subcontractor's Certificate of Current Cost or Pricing Data, the Government is entitled to a price adjustment, including profit or fee, of any significant amount by which the price was increased because of the defective data. Any other data that may be pertinent to an assessment of the offerors ability to accomplish the technical requirements or to the cost or price analysis of the service or product being proposed should also be included in the analysis. Optional, unless required by the Contracting Officer. The contracting officer shall insert the provision at 52.215-16, Facilities Capital Cost of Money, in solicitations expected to result in contracts that are subject to the cost principles for contracts with commercial organizations (see subpart 31.2). See 86 Fed. Phasos of the Services Acquisrt:ion Procoss 4 Reqmr.menls Oeflndlon 5. Date and number of inventory requisition 10. no, the tickets exceed the . Negotiations aimed merely at reducing prices by reducing profit, without proper recognition of the function of profit, are not in the Governments interest. (1) The requirements of this paragraph (h) are applicable to all agencies. (5) When modifying a contract or subcontract for commercial products or commercial services (see standards in paragraph (c)(3) of this section). 6.302-5 - Authorized or required by statute 12,816. Statement of need Enter your redetermination proposal amount. In this module, the following topics will be covered: 1) estimates of the values of environmental goods in dollar terms, and 2) the strengths and weaknesses of valuation methods in all three parts of the environmental valuation toolkit. (2) Format for submission of data other than certified cost or pricing data. When this result is negative, place the amount in parentheses. For all other acquisitions, the PCO may serve as the SSA in accordance with FAR 15.303 unless the Agency head or designee appoints another individual. (iii) The following requirements apply to minor modifications defined in paragraph (3)(ii) of the definition of a commercial product at 2.101 that do not change the commercial product to other than commercial: (A) For acquisitions funded by any agency other than DoD, NASA, or Coast Guard, such modifications of a commercial product are exempt from the requirement for submission of certified cost or pricing data. (v) GSA use of the Government purchase card for micro-purchases shall follow the instructions under GSA Order 4200.1A CFO.