Did you know the DCAA announced a strategy to significantly increase audits of Government contractor business systems? Contractors can take steps to prepare for the potential of business system audits with some due diligence.
Our compliance experts have outlined key strategies for critical risk mitigation measures to help enhance the likelihood that the government determining contractors’ business systems are adequate. These strategies can support organizational goals to reduce contractors’ related compliance risks and be prepared in case an audit happens.
Join our experts as they provide a state of audits, a future outlook and key strategies that will help assure compliance.
This webinar is sponsored by JAMIS Software Corporation.
In 2009, the Commission on Wartime Contracting issued a special report on contractor business systems. This report highlights the Commission’s principal conclusion: “Contractor business systems and internal controls are the first line of defense against waste, fraud and abuse.” This report set in motion the promulgation of the Defense Federal Acquisition Regulation Supplement (DFARS) Business Systems Rule, which was finalized on February 24, 2012.
WHAT YOU WILL LEARN
This course focuses on the development of internal controls for compliance with the DFARS defined Business Systems: Accounting, Estimating, Material Management and Accounting System (MMAS), Earned Value Management (EVM), Purchasing, and Property. The course emphasizes the role of the Defense Contract Audit Agency (DCAA) in auditing and evaluating contractors’ internal controls. In fact, DCAA has continuously developed new audit programs for assessing contractors’ compliance with the detailed requirements of the DFARS. This has been an evolution that has resulted in shifting emphases by DCAA up to and including the present time. The Defense Contract Management Agency (DCMA) has similarly adjusted its review criteria as well.
The instruction provides recommended and proven approaches to develop, maintain, and monitor internal business system controls for compliance with Government contract requirements including FAR and DFARS business system requirements. This course is recommended for those individuals who have a fundamental or better background in negotiated government contracting, and government contract regulatory compliance-related responsibilities. It will benefit individuals with responsibilities for developing and conducting internal compliance audits and oversight reviews as well as contractors who wish to establish, improve or update existing systems of internal controls. Overall, this course will enhance skills in government contract compliance risk management.
WHO SHOULD ATTEND
- Compliance Professionals
- Audit and Internal Controls Professionals
- Finance and Accounting Professionals
- Small Business professionals
- Prime Contractors
- Contract Managers and Administrators
- Senior Level Contracts Professionals
UPON COMPLETION OF THIS COURSE, PARTICIPANTS SHOULD KNOW
- The nature and intent of business systems compliance requirements
- Internal control risk management and compliance models
- Inter-relationships between accounting and other related systems
- The types of compliance internal controls
- Indicators of risk/vulnerability and potential non-compliance in business systems
- The adequacy qualities, government oversight approaches and significant compliance issues related to various business systems.
WHAT YOU WILL LEARN
- A comprehensive approach to the new cost-competitive environment in Government Contracting
- How cost and price analysis is used to determine realistic prices and costs in Government Contracting
- How Contractor and Government professionals can prepare and support cost and price proposal decisions
- How Contractor and Government professionals manage challenges in cost and price analysis
Price and cost realism analyses are evaluation processes to determine price validity and the most realistic price that the Government will pay for goods and services. This workshop features an in-depth explanation of how price and cost analysis techniques apply and impact the preparation, pricing, and evaluation of contract cost proposals. Coverage will focus on the pinch points in the process – those areas of significant and continuing controversy. Participant involvement and questions will also drive the discussion.
The increasing importance of price and cost challenges to contract awards and how to manage and minimize protest risks will also be covered. The workshop starts with definitions from the rules, regulations, case decisions, and available guidance.
- Price Analysis is the process of examining and evaluating a proposal price without evaluating its separate cost elements and proposed profit.
- Price Analysis should be used to verify that the overall price offered is fair and reasonable.
- Price Analysis shall be used when cost or pricing data are not required.
- A Price Reasonableness Analysis is intended to prevent the government from paying too much for contract work.
- The purpose of a Price Realism Analysis has been described as a verification that the offeror’s price is not overly optimistic and impractically low.
- A Price Realism Analysis examines the performance risk of proposals in a fixed-price contract procurement, with particular attention to the risk of low-priced proposals, and may include cost realism analysis.
- A Price Realism Analysis will be applied in order to measure the offeror’s understanding of the requirements and/or to assess the risk inherent in an offeror’s proposal.
- A Price Realism Analysis is intended to determine if the contractor is proposing a price so low that the performance of the contract will be at risk.
- Cost Realism Analysis is the process of independently reviewing and evaluating specific elements of each offeror’s proposed cost estimate to determine whether the estimated proposal cost elements are realistic for the work to be performed; reflect a clear understanding of the requirements; and are consistent with the unique methods of performance and materials described in the technical proposal.
- Cost Realism Analysis may also be used on competitive fixed-price incentive contracts or, in exceptional cases, on other competitive fixed-price type contracts when new requirements may not be fully understood by competing offerors, there are quality concerns, or past experience indicates that contractors proposed costs have resulted in quality or service shortfalls. Results of the analysis may be used in performance risk assessments and responsibility determinations. 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.
- Cost Realism Analysis shall be performed on cost-reimbursement contracts to determine the probable cost of performance for each offeror.
- Cost Reasonableness and Cost Realism are distinguishable, but both of these analytical frameworks critically examine the cost elements of a price proposal.
- Cost Analysis shall be used to evaluate the reasonableness of individual cost elements when cost or pricing data are required.
- Cost Analysis may also be used to evaluate information other than cost or pricing data to determine Cost Reasonableness or Cost Realism.
The objective of Proposal Analysis is to ensure that the final agreed-to price is fair and reasonable.
Questions are encouraged and the materials and resources provided will help participants to meet the new and continuing challenges in cost and price analysis in the new competitive environment of contracting.
Who should attend:
Finance, Accounting, Contracts Personnel, Acquisition Specialist with 5 or more years of experience in Cost and Price Analysis. Those who have taken the Cost & Price Analysis class at least 6 months prior.
What you will learn:
With the ever-increasing pressure on federal government budgets, the emphasis on ensuring that prices paid for goods and services are “fair and reasonable” is at an all-time high. “Buyers” (both Government Contracting Officers as well as Prime Contractors) are under intense scrutiny to demonstrate that analytical techniques (Cost Analysis and Price Analysis) prescribed in the Federal Acquisition Regulation (FAR) for determining “fairness and reasonableness” are being performed appropriately and adequately.
FAR describes “cost analysis” as: ” . . . the review and evaluation of any separate cost elements and profit or fee in an offeror’s or contractor’s proposal, as needed to determine a fair and reasonable price or to determine cost realism, and the application of judgment to determine how well the proposed costs represent what the cost of the contract should be, assuming reasonable economy and efficiency.”
Cost Analysis techniques and procedures include the following:
• The classification of workers
• Verification of cost data or pricing data and evaluation of cost elements
• Evaluating the effect of the offeror’s current practices on future costs
• Comparison of costs proposed for individual cost elements with various sources
• 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 (Appendix to the FAR looseleaf edition), Cost Accounting Standards.
• Review to determine whether any cost data or pricing data, necessary to make the offeror’s proposal suitable for negotiation, have not been either submitted or identified in writing by the offeror.
• Analysis of the results of any make-or-buy program reviews, in evaluating subcontract costs.
Advanced Cost Analysis focuses on these specific techniques and describes and demonstrates in detail the procedures required to accomplish these. Participants will learn not only the “why’s” but the “how to’s”.
The course objective, simply stated, is to have participants obtain a working level understanding of Cost Analysis through a thorough review and analysis of the regulations and illustrated through a variety of real-world examples, scenarios and case studies.
• Course Manual
• Handouts & Sli
There is nothing more fundamental, more critically basic, to the success of a Government contractor than preparing proposals. One of the keys to preparing successful proposals is knowing how they are evaluated by the Government. Another is how the source selection process works — especially in the new acquisition environment of performance-based contracting and oral presentations.
As the detailed Course Curriculum illustrates, this program is a step-by-step analysis of the proposal preparation and source selection processes — from both the contractor and Government perspectives — and is designed for executives, marketing personnel, proposal writers, program manager, attorneys, engineers, contract specialists, cost analysts, and all support personnel to a competitive proposal. The benefits attendees will receive include solid reviews of:
- Understanding the customer’s organization and regulations
- What you must know and do before the RFP is released
- How and when to gather information helpful to your proposal
- How to start writing your proposal before the RFP is issued
- The proposal: Maximizing your score…tips that really work
- Source Selection Evaluation Boards — how they work, how ratings are assigned
- The role of price in winning; what “best value” really means
- How to turn a weak rating into a strong rating
- Written and oral negotiation strategies
- How final decisions are made and documented