Advanced Cost Proposal Workshop

Why is this Workshop Different?

If you have the basics of preparing cost/price proposals under your belt and you are ready to develop the skills most cost/price proposal writers develop only through years of hands-on experience, Fedmarket's Advanced Cost Proposal Workshop takes you to the next level.

It gives you hands-on experience with those activities designed to improve overall win probability, many of which are completed well before the RFP arrives, aimed at accomplishing the following:

• help develop your price to win strategy
• insure that your cost accounting structure creates a framework for your cost proposal that is both complaint and responsive
• create synergy and teamwork between the functional elements of pricing and accounting
• survive the proposal audit

This workshop will give you tools and techniques that dramatically improve price proposal quality, integrate the cost/price volume with other volumes, improve overall win probability, and insure cost management and control during contract performance.

Who Should Attend?

This workshop is tailored to the needs of senior executives, pricing analysts, proposal managers, proposal support staffs, accounting department personnel, and anyone else in your organization who regularly participate in developing price proposal strategy and/or execution as well as those responsible for proposal audits, and cost accounting structure.

Why Should You Attend?

Capture Managers, Business Development Managers, and those involved with B&P activity in an organization are those whose primary responsibility is marketing products or services to the federal government. These individuals are responsible for developing win themes and discriminators and integrating them into a well crafted proposal that increases overall win probability. As an integral part of this overall effort, the pricing function must support the marketing function and work with these individuals to determine overall pricing strategy. Sr. level pricing experts within an organization must also weigh in on the bid/no bid decision, and often times must educate other organizational elements as to why particular strategies may or may not be appropriate in any given circumstance. Protecting the organization from audit or performance risk begins with those assigned the responsibility of pricing proposals. If this is your role in your organization, then this workshop is for you.

Workshop Description

This workshop introduces participants to the critical relationship between cost accounting structure and proposal pricing strategy. It begins with an overview the Cost Accounting Standards, critical Federal Acquisition Regulation concepts, and the DCAA definition of Adequate Accounting Systems for performing federal contracts. With this understanding, participants are able to understand the criticality of integrating cost accounting methodologies with proposal pricing strategies and techniques.

Federal regulations require that contractors maintain consistency between estimating, accumulating, and reporting costs on federal contracts. Further, contractor accounting systems must be deemed adequate by cognizant audit agencies. Therefore, estimating and pricing contract proposals requires that offerors develop costs based upon current accounting practices and cost accounting structure. The workshop gives you insight into cost accounting and pricing strategy best practices that, when coupled with a management proposal and outstanding relevant experience and past performance, will increase overall win probability and help insure compliance with cost management and control objectives during contract performance.

During the workshop, participants will design an organizations cost accounting structure to compliment its business strategies. You will learn how to develop price to win and deliver as promised.

Contents Covered:

Introduction

• Relationship between accounting department and proposal pricing personnel

Cost Accounting Basics

• Key Federal Acquisition Regulations
• Cost Accounting Standards
• Cost Allowability
• Cost Principles
• Requirements of an Adequate Accounting System
• Government Contract Audits
• Considerations for the initial cost/price model

Cost Accounting Structure

• Direct vs. Indirect Costs
• Service Centers
• Overhead and G&A Pools
• Total Cost Input vs. Value Add G&A
• Material Handling and Subcontract Administration Pools
• Provisional, Forward Pricing, and Final Indirect Rates

The Cost Proposal

• RFP Section L - The Instructions
• Cost Volume - The Narrative
• Cost Volume - The Numbers
• Basis of Estimates
• Pricing Templates
• Documentation
• RFP Section M - The Evaluation
• Proposal Audits

Cost / Price Proposal Strategies

• Price to Win
• Bid/No Bid Decision and Price
• Evaluate Workshare
• Address Escalation
• Reassess Direct vs. Indirect Criteria
• Diversify Overhead Rates
• Develop Project Specific Overhead
• Change G&A Base
• Establish Multiple Business Units
• Create Service Centers
• Pricing Reviews
• BAFO's