Benefits

Build your supplier advantage

Skip the headaches by setting the right strategy with internal clients and suppliers from the start, including creating proposal collateral that meets team, customer, regulatory, and contract needs.

  • Subcontract template development
  • RFX package development
  • Supplier discovery sessions
  • Direct labor rate development
  • Subcontractor labor load development & factors
  • Small business goal modeling

Anticipate auditor questions

Evaluate common supplier blind spots, while assisting your preferred suppliers in developing compliance infrastructure that in turn, strengthens your reputation.

  • Supplier rate analysis
  • Indirect rate development
  • TINA compliance sweeps

Compliant analysis, handled

Get your price and cost analysis done for you in accordance with FAR Part 15, while equipping your team with analysis and negotiation skills for future proposals to enhance your probability of winning.

  • Cost & price analysis
  • Analysis & negotiation training

Negotiate, seamlessly

Secure favorable terms and pricing through supplier and customer negotiations, with expert witness support to safeguard your position in any dispute.

  • Supplier negotiations support
  • Customer negotiations support
  • Expert witness assistance
Exterior of curved building courtyard.

When I found Capital Edge, I was looking for a partner. Someone who would partner with me. Normally I’d want to compete, but after meeting them I went directly with them.

Director of Supply Chain Nonprofit Research Organization

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success stories

Take a deeper dive and discover how we’ve helped clients with Price & Cost Analysis.

FAQs

What is price and cost analysis, and why does it matter for winning contracts?

Price analysis and cost analysis are distinct but complementary evaluation methods used to establish fair and reasonable pricing on government contracts. Price analysis compares offered prices against market benchmarks, historical data, or competitive proposals without examining underlying cost elements. Cost analysis goes deeper, evaluating the allowability, allocability, and reasonableness of individual cost elements under FAR Part 31. The distinction matters because the government applies each method based on contract type, dollar threshold, and availability of competitive data. Contractors who understand which standard applies, and prepare accordingly, are better positioned to defend their pricing, accelerate negotiations, increase contract win rates, and protect contract profitability.

When is a contractor required to submit certified cost or pricing data?

Certified cost or pricing data is required when a contract, subcontract, or modification exceeds the Truth in Negotiations Act (TINA) threshold, currently set at $2 million under FAR 15.403-4, unless a specific exemption applies. Exemptions include acquisitions of commercial items under FAR Part 12, prices set by law or regulation, and situations where adequate price competition exists. When the threshold is triggered, the contractor must certify that the data submitted is accurate, complete, and current as of the date of agreement on price. Errors or omissions in that certification expose the contractor to defective pricing liability, which can result in government-initiated price reductions and significant financial recovery actions.

How does supplier pricing compliance affect our standing with the government?

A prime contractor’s purchasing system is evaluated, in part, on the quality and consistency of its price and cost analysis practices at the subcontract level. During a CPSR, DCMA auditors examine whether the prime has conducted adequate analysis before awarding subcontracts, particularly for sole-source awards and those approaching TINA thresholds. Suppliers with underdeveloped indirect rates, unsupported BOE, or misclassified labor categories create downstream compliance risk for the prime. Strengthening supplier pricing infrastructure is not a vendor management courtesy; it is a direct input to the prime’s own purchasing system adequacy and government reputation.

What are the most common pricing vulnerabilities that auditors and contracting officers identify?

The most frequently cited pricing vulnerabilities fall into several categories. Unsupported indirect rates that lack a compliant cost accounting structure are a consistent finding. Labor category misalignment, where proposed labor does not map to actual qualifications or historical experience, draws scrutiny during both proposal evaluation and post-award audit. BOE deficiencies, including vague or inconsistent assumptions, weaken the contractor’s ability to defend pricing during negotiations. At the subcontract level, failure to conduct and document adequate price or cost analysis before award is one of the most common CPSR deficiencies. Each of these vulnerabilities is addressable through structured pre-proposal preparation and internal review disciplines.

How should we approach negotiations with suppliers or the government on pricing disputes?

Effective pricing negotiations, whether with suppliers or government contracting officers, require a structured analytical foundation built before the first conversation occurs. On the supplier side, the prime should establish a documented pre-negotiation objective, supported by independent price or cost analysis, prior to any commitment. On the government side, the contractor’s position must be anchored in FAR Part 15.406 negotiation principles, with contemporaneous records that can withstand post-award review. When disputes escalate, expert witness support grounded in regulatory expertise can be determinative. Negotiators who enter discussions without documented analytical support routinely concede more than necessary, affecting both the current award and the contractor’s perceived credibility in future procurements.

How do we build internal pricing and cost analysis capabilities that hold up over time?

Sustainable pricing capability requires more than access to skilled analysts on individual proposals. It demands documented policies and procedures that define how price analysis and cost analysis are conducted, recorded, and approved across all contract types and dollar thresholds. Staff involved in proposals, subcontract management, and procurement need structured training on FAR Part 15 requirements, the ability to interpret and apply the confluence of data in an effective manner, TINA obligations, and the evidentiary standards that support a defensible pricing position. Organizations that treat pricing as a transactional function rather than a compliance discipline accumulate risk across their portfolio. Building repeatable, auditable processes converts pricing competency into a durable competitive and contractual asset.