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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.
A contractor got into a pricing squeeze when the customer, in this case the Marine Corps, way underestimated the quantities for the services under the fixed-price contract. Why don’t you, contractor, just submit an REA for a go forward, change the unit pricing. This one just seeks a change in the unit prices.
I think that this is a win for enhanced competition, especially for small businesses that may have had to previously finance software acquisitions and have to offer higher prices as a result,” he said. This move should increase competition and drive better pricing. This is a win for common sense in government acquisition.”
Specifically, this acquisition letter clarifies that despite statutory prohibitions against the use of “advance” payments outside of narrowly-prescribed circumstances, upfront payments for SaaS licenses do not constitute an “advance” payment subject to these restrictions when made under the following conditions: access to the software is granted contemporaneously (..)
I think most government contractors have contracts that are negotiated and the prices are negotiated upfront, and then they have to adhere to those prices over the course of the entire five-to-10 year contract. Tom Temin Right. Kevin Plexico It’s not like the government is getting extra money for inflation as well.
McGinty notes however, that local governments may buy less regularly and in smaller quantities than for-profit landscaping businesses. The company has more than 600 locations throughout the U.S.
For instance, for negotiated contracts, a “protest must be received by the contracting officer prior to the close of business on the 5th day, exclusive of Saturdays, Sundays, and legal holidays, after the contracting officer has notified the protestor of the identity of the prospective awardee.” ” 13 CFR 121.1004.
I made all the decisions about the chart and back catalogue (non chart) singles range I stocked and the pre-order quantities of new release singles. My job was to ensure I had enough stock to fulfil demand and beat my sales targets. T rends came and went fast! This could be a very stressful activity.
First and foremost, if enacted, the legislative language will enable the Schedule program to continue to modernize beyond the price reduction clause, which clause represents the antithesis of best value. Certainly, there will be task or delivery order competitions where price is the determining factor.
Traditional sourcing was all about sourcing goods at the lowest possible price. Where price is the primary component of traditional sourcing, it is just one component of strategic sourcing. Consider the departments involved, the quantity, where they are located and the processes that are used.
Customers may select the best offer from submitted tenders based on quality, price, and terms thanks to its transparency, equity, and efficiency of the tender process. This method decreases the number of bids to control and evaluate, concentrating on the quality rather than quantity. It serves as the foundation for the tender.
a) of the GSA, if gas was not utilised by QAPTL, the gas would be diverted to other consumers; however, QAPTL would remain liable to pay the agreed price netted against the sum collected by any such diversion. of the GSA “Diversion of Gas and Take or Pay” for Monthly Take-or-Pay Quantity of gas. Under Section 3.6(a)
It is just as valid to sign a contract extension with an incumbent supplier as it is to run a full RFP and intensive negotiation process. Considers all of the ways to meet a business need rather than just updating the prices, quantities and terms of the past and carrying them forward.
For instance, FAR includes a provision at 52.203-2, Certificate of Independent Price Determination, which ensures independent bids and prevents collusive pricing in government contracting. In addition, the FAR stipulates specific rules for performance-based service contracts, requiring measurable outcomes and performance standards.
Government contracting has the reputation of a safe haven against economic cycles (given the federal government’s long history procuring goods and services, often in even greater quantities during down times). In addition to the notice period, contractors must assume additional time for agency review and negotiation. Far from it.
This year’s tables include: November 20: GSA MAS PMO GSA Pricing Tools Medical/Surgical Supply BPAs SAM.gov PMO VA Federal Supply Schedule (FSS) November 21: VA FSS Community Care Network (CCN) View the agendas for more details. Pricing details included in the prospectus. Thus, the VA set the solicitation aside for small business.
During the training, Jason, Liam, and Alex will cover the following topics and more: Pricing – Transactional Data Reporting (TDR)/Commercial Sales Practices (CSP); Domestic Preferences; Supply Chain; Enforcement/Mandatory Disclosure/Ethics; Sustainability Requirements/Policy; and Bid Protests Update.
Pricing details included in the prospectus. The deadline to avoid a government shutdown is September 30, although Friday, September 27 is seen as the target date for lawmakers to finalize negotiations before returning to their home districts to campaign until the election. 8, A3 Price Template V.2 What is the funding profile?
On November 20, tables include: GSA MAS PMO GSA Pricing Tools Ask the Med/Surg Supply BPAs Ask the SAM.gov PMO VA Federal Supply Schedule (FSS) To view the draft agenda for the governmentwide day, click here. October 28 : Webinar: 2024 (2025 FCPs) Public Law Pricing Update for Covered Drugs – Click here to register.
If you’re exploring contract types that any government agency uses, understanding the distinctions between fixed-price, cost-reimbursement, and other specialized contracts is paramount. The two main categories of government contracts are fixed-price contracts and cost-reimbursement contracts.
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
2305(b) , and FAR 6.401(b) , it is apparent that the term implies competitive negotiation source selection procedures, as typified by FAR Part 15 but not necessarily limited to FAR Part 15. [19] The Competitive Negotiation in a Trojan Horse The 2020 U.S. . § 3703 , 10 U.S.C. See, e.g., Centerra Integrated Facilities Servs.,
This year’s tables include: November 15 Multiple Award Schedule (MAS) GSA Pricing Tools Customer and Stakeholder Engagement (CASE) VA Med/Surg Supply BPAs November 16 VA Federal Supply Schedule (FSS) VA Pathfinder Program Be sure to check both agendas for more details! This update aligns the OSP functionality with the RFP at Section L.5.2.1.
Even partnerships and LLCs negotiating federal contracts are barred from making political contributions and expenditures. It ensures stable, long-term contracts for a variety of commercial products and services at predetermined prices, offering reliable and consistent payment terms to contractors.
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. It is also a regulatory requirement. See FAR 15.405.
This guide breaks down the major contract types government agencies use, including fixed-price, cost reimbursement, time and materials, and IDIQ contracts. Key Takeaways Fixed-price contracts allow for clear cost expectations, pushing risk management onto contractors and fostering efficiency.
Federal government contracts can be categorized into different types, including fixed-price contracts, cost-plus contracts, and time-and-materials contracts. Federal contracts come in various forms, including fixed-price contracts, cost-plus contracts, and time-and-materials contracts.
The two main types are fixed-price contracts and cost-reimbursement contracts. Fixed-price contracts involve a set price for the goods or services provided, regardless of the actual costs incurred. Two examples are Indefinite Delivery, Indefinite Quantity (IDIQ) contracts and Time and Materials (T&M) contracts.
“In advance of any finalization of such regulatory amendments, which will be subject to notice and comment, OFPP encourages early agency adoption of these management steps, which can help agencies in meeting the SDB contracting goal they negotiated with SBA for 2024 in accordance with OMB Memorandum M-24-01,” the memo states.
COTS items are defined as any item of supply that is (1) a commercial item, (2) sold in substantial quantities in the commercial marketplace, and (3) offered to the government under a contract or subcontract at any tier, without modification, in the same form in which it is sold in the commercial marketplace.
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).
Beyond force majeure, some contracts have price adjustment, hardship, or material adverse change clauses that may be helpful. Every force majeure clause must be examined on a case-by-case basis, but a solid understanding of how courts interpret them and ambiguities therein can help in negotiations and litigation.
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