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Welcome back to the Cost Corner, where we provide practical insight into the complex cost and pricing requirements that apply to Government Contractors. We just completed two articles on the Truth in Negotiations Act (TINA) [1] and, before that, two articles on Defense Contract Audit Agency (DCAA) audits.
“Fair and Reasonable” MAS contract level pricing is impacted by a host of factors. Contracting officers must assess, analyze, and apply these factors when reviewing an offeror’s proposal and negotiating fair and reasonable pricing. Previous FAR & Beyond blogs regarding this topic can be found here and here.
As one of three major acquisition policy changes GSA is seeking over the next year, the proposal would remove language in the schedules program that many blame for why agencies use lowest price, technically acceptable (LPTA) still too often. Koses said CICA change would help contracting officers as well as companies alike.
And I think the labor market is definitely an area of challenge that a lot of contractors are facing, not just this particular issue, but just in general. Absent that, we definitely don’t want them manufactured in places like China or North Korea or Russia. That kind of provision and insertion we’ve never seen before.
These regulations and associated guidance address a host of contracting officer responsibilities, including but not limited to, proposal evaluation, negotiations, price and/or cost analysis, data rights, and foreign acquisition ( e.g. , TAA). For this reason, procurement policy flow-downs cannot be one-sided.
Federal Acquisition Policy and Procedure (PAP) 2021-05, Evaluation of FSS Program Pricing , sets forth “comprehensive guidance regarding the evaluation of pricing throughout the life of a Federal Supply Schedule (FSS) program contract.” Pay a Fair and Reasonable Price ). Emphasis added.) See Section 2.
This week, in the spirit of “Fair and Reasonable Transparency,” the Coalition submitted to the Federal Acquisition Service (FAS) feedback on its “ FAS Policy and Procedure (PAP) 2021-05, Evaluation of FSS Program Pricing.” Beyond the non-mandatory nature of the FSS program, all task and delivery orders are governed by the FAR 8.4
I’ve had clients who pushed back, delayed and then negotiated what the Justice Department really wanted. These employees would have to do everything from managing contracts to keeping up with pricing changes to keeping on top of all the legal and cybersecurity compliance requirements and much more. Why take the risk?
Interview Transcript: Zach Prince Well, it really depends on how the FAR council ends up refining the definitions. The FAR council said that in the proposed rule, because it touches anybody that has a contract, that includes some information and communication technology, which is a hugely broad definition of things. Tom Temin Sure.
Federal Acquisition Policy and Procedure (PAP) 2021-05, Evaluation of FSS Program Pricing , sets forth “comprehensive guidance regarding the evaluation of pricing throughout the life of a Federal Supply Schedule (FSS) program contract.” Pay a Fair and Reasonable Price ). Emphasis added.) See Section 2.
These regulations and associated guidance address a host of contracting officer responsibilities, including but not limited to, proposal evaluation, negotiations, price and/or cost analysis, data rights, and foreign acquisition ( e.g. , TAA). For this reason, procurement policy flow-downs cannot be one-sided.
Welcome back to the Cost Corner, where we provide practical insight into the complex cost and pricing requirements that apply to Government contractors. 1] This definition is quite broad. Manos, Government Contract Cost & Pricing § 13:3 (2023). [24] DCAA, DCAM ¶ 6-413.1.c. 10] FAR 31.205-6(b)(1). [11] 18] See FAR 31.205-6.
Definition of Prime Contractor A prime contractor refers to an entity that receives a government contract to oversee and carry out a project. Differentiating your company through technical excellence, innovative solutions, and competitive pricing can also increase your chances of winning contracts.
But first a definition of efficiency. One of the greatest sources of contract disputes is how to handle price increase requests where there is no clear contract language. The best method is an evidence-based approach showing the underlying cause of the price increase.
I don’t think the whole story has been told, but I think the one thing that’s definite is that this is going forward. HomeSafe’s pricing was bid in 2019, and we’ve seen a lot of inflation in our industry. We’ve had negotiations with TRANSCOM to adjust for the inflation that’s occurred. It’s about $110,000 now,” he said.
But it’s not intended to be an automatic stop on, awarding task orders to other than small businesses, but it is definitely intended to switch the balance of power so that the presumption going in is in favor of small businesses. And if you want to keep it on schedule, you have to lower your price. And we’re kind of here.
1] Similarly, with respect to goods imported under an inward processing regime, the Commission’s practice is inconsistent; it has excluded such imports in determining export price in some cases, while in other instances, it has included such imports. [2] Whether the ASCM permits this interpretation is not clear. [6]
Article 3 of the Announcement strictly prohibits any financial institutions operating in China from offering cryptocurrency-related services, including pricing, intermediation, or engaging in the buying or selling of cryptocurrency. In the authors’ view, that remains an open question. As a case in point, in Sun Dingshang v.
Particularly, the Personal Consumption Expenditures Price Index (“PCE”) core inflation rate for January 2024 was 2.8%. [30] 33] Importantly, since the inflation high water marks of 2022, mostly what has occurred is disinflation (decrease of the inflation rate), not actual deflation (price decreases). down from 5.5%
Per SBA, “[w]here the purchasing concern is not able to fulfill the requirements of the existing mentor-protégé agreements as written,” the protégé should be able to either negotiate a revised MPA with the purchasing concern or terminate the MPA if the protégé believes the new entity is not a good fit.
A discussion between economist Gustavo Franco (former President of the Brazilian Central Bank) and arbitrator Maurício Almeida Prado (MAP Negotiation and Arbitration, Partner) ensued, dealing with “Business Contracts and Dispute Resolution in Times of Instability,” particularly in the Brazilian context. Westinghouse (1984) and Gasum v.
I think bit more definition of what an agency needs to do where there is no exception to the rule would be helpful. If SBA gets a lot of feedback, that could be a powerful way to negotiate something in between. If they can’t apply the rule of two, it’s very vague right now about documenting and giving that to SBA,” she said. “If
Department of Labor (“DoL”), Bureau of Labor Statistics (“BLS”), September 13 Consumer Price Index (“CPI”) Summary states that “[o]ver the last 12 months, the all items index increased 8.3 1] Similarly, the BLS September 14 Producer Price Index (“PPI”) Summary states that “[o]n an unadjusted basis, the index for final demand moved up 8.7
In fact, you and I have talked about a couple of them, where the Trade Commission’s definition of an antitrust dynamic often is very narrowly focused in terms of what the interpretation is. Tom Temin Especially in markets where prices are falling. It’s going to take a while to negotiate the contracts.
program requirements proposed at 32 CFR part 170; Add definitions for controlled unclassified information (CUI) and DoD unique identifier (DoD UID) to the subpart; Establish a solicitation provision and prescription; and Revise the existing clause language and prescription. . § The new prices will be effective Jan 1, 2026.
Using this definition, the Court reasoned that a follow-on production OT solicitation is a procurement because it seeks to acquire property or services for the government, whether the agency accomplishes that acquisition using its OT authority or the authority under the FAR. Ultimately, the Court denied the government’s motion to dismiss.
Weekend & Holiday Tolling Regarding the definition of day for the three-day request period, FAR 15.501 states “ Day , as used in this subpart, has the meaning set forth at [FAR] 33.101.” [11] The Competitive Negotiation in a Trojan Horse The 2020 U.S. for the time zone where the Contracting Office is located. 3703 , 10 U.S.C.
The proposed regulations are further explained and summarized below: Key Definitions: Certain terms are broadly defined and capture large segments of the U.S. Below are definitions for four key terms that illustrate the scope of the Proposed Rule. cloud computing sector. bare-metal servers”). IaaS products and any of their U.S.
The related TAA definition can be found here. Using this definition, the Court reasoned that a follow-on production OT solicitation is a procurement because it seeks to acquire property or services for the government, whether the agency accomplishes that acquisition using its OT authority or the authority under the FAR.
The guide provides an overview of UFDUR, important definitions and terms, and tips on how to navigate the report. Pharmaceutical Pricing Summer Webinar Series Welcome to the “Pharmaceutical Pricing Fun in the Sun Summer Webinar Series”! What are 5 key considerations for my organization in reporting pricing?
8] is around leveraging data, to be able to help get the lower prices and better terms, and certainly is one of the first pillars around that. It’s not just about pricing, but also what are the terms and what are the conditions to be able to help provide that kind of context. It’s completely paid off for us in a big way.”
Federal Acquisition Policy and Procedure (PAP) 2021-05, Evaluation of FSS Program Pricing , sets forth “comprehensive guidance regarding the evaluation of pricing throughout the life of a Federal Supply Schedule (FSS) program contract.” Pay a Fair and Reasonable Price ). Emphasis added.) See Section 2.
On Friday, March 1st, agencies funded under the Agriculture, Energy-Water, Military Construction-VA, and Transportation-HUD appropriations bills risked entering “shutdown mode,” as the previously negotiated extension was set to expire. Below are definitions for four key terms that illustrate the scope of the Proposed Rule.
Contract type – fixed price per month. Final Terms Negotiations – what will be negotiated with the short-listed vendor under Contract A. Your evaluations will reveal the winner(s) Finalize contract terms/final negotiations Summarize your results. Payment Terms – Net 30 or 2% Net 15.
Consequently, in the 2014 Final Rule , DoL expressly excluded the minimum wage increase from the Government’s unilateral exercise of a pre-negotiated option on an already existing contract. [63] FAR 22.401 (definitions of Apprentice and Trainee ); 79 Fed. m); FAR 22.401 (definition of Laborers or mechanics). [36] 13] See id.;
Definition and Eligibility 8(a) set-aside contracts are federal contracts specifically designated for businesses that are part of the SBAs 8(a) program. Its important for potential participants to understand that if competitive negotiations occur before SBAs acceptance into the 8(a) program, the application may not be accepted.
Stakeholders must appreciate and understand that there is a nexus between requirements and price, especially for small businesses. Data context in assessing fair and reasonable pricing is foundational to sound acquisition business decisions. The proposed rule also adds new FAR definitions and expands others. See FAR 15.405.
Price , the Supreme Court stated that “[p]rivate persons, jointly engaged with state officials in the prohibited action, are acting ‘under color’ of law. Hence, just like under the NLRA, unless the bargaining unit agreement already grants to the agency the unilateral right to impose a vaccination requirement, the agency has to negotiate.
ENSURING ADEQUATE COVID-19 SAFETY PROTOCOLS FOR FEDERAL CONTRACTORS (OCT 2021) (DEVIATION) (a) Definition. But, what if the procuring Agency unilaterally imposes the deviation clause, without economic adjustment, without negotiation, and when the Agency issues a unilateral mod., Here is what the clause says. Still enforceable?
The Coalition has recently pointed out that if recent proposed rules are finalized there may be different definitions of cyber incidents and cyber incident reporting timelines, depending on the contracting agency. It increases prices for government and commercial customers.
The Coalition has recently pointed out that if recent proposed rules are finalized there may be different definitions of cyber incidents and cyber incident reporting timelines, depending on the contracting agency. It increases prices for government and commercial customers.
Congress Releases Compromise $895 Billion FY25 NDAA Meritalk reports that the House of Representatives and Senate published their final negotiated version of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2025. billion in spending, falling just below the mandated budget cap set by the Fiscal Responsibility Act (FRA).
The BCI includes four priorities to make certain that the Federal Government receives “better terms and prices when purchasing goods and services.” The BCI is part of an effort that began in the Obama-Biden Administration to address agencies paying inconsistent and often higher prices when compared to the commercial market.
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