What is Defective Pricing and Why Should You be Worried?

Whether you call it “defective pricing” (DP) or Truth in Negotiations Act (TINA) or even the current labeling of Truthful Cost or Pricing Data Act (TCoPD - 41 USC Ch. 35) there is not much new about the impact to Federal Government contractors. The law supporting this goes back to 1962 in an environment where Congress believed contractors were overcharging the Government for negotiated goods or services. My how times have not changed. This could also describe our current Congress and may create worry among government prime and subcontractors.

Read More

Topics: Contracts & Subcontracts Administration, DCAA Audit Support, Federal Acquisition Regulation (FAR), Estimating System Compliance

Acceptable Estimating System: NITAAC CIO-SP4 Points Scoring

The National Institutes of Health Acquisition and Assessment Center (NITAAC) released its long-awaited Request for Proposal (RFP) for the Chief Information Officer – Solutions and Partners (CIO-SP4) program on May 25, 2021. Phase I of the evaluation of offeror proposals will consist of validation of the offeror’s completed self-scoring sheet and ranking the offerors based on this scoring. Only the highest rated offerors will advance to phase 2 of the evaluation. Accordingly, every point counts!

Read More

Topics: Proposal Cost Volume Development & Pricing, DFARS Business Systems, Estimating System Compliance

Government Contractor Estimating System Requirements and Audits

The FAR establishes that when contracting by negotiation with the Government, the contractor should have an acceptable estimating systemFAR 15.407-5 provides that due to the benefits to both the Government and the contractor in reducing the scope of individual proposal reviews at contractors with an acceptable estimating system, the auditor (likely DCAA) should survey the system and provide a report to all contracting offices and contract administration offices doing substantial pricing activity with the contractor.  This is a very open-ended requirement/expectation; therefore, DoD established a structure in the DFARS.

Read More

Topics: Contracts & Subcontracts Administration, DFARS Business Systems, DCAA Audit Support, Estimating System Compliance

Estimating System Audits with Cheryl Anderson

With a renewed focus on DCAA Estimating System Audits, Cheryl Anderson shares some advice on successfully navigating the process.

Read More

Topics: DFARS Business Systems, DCAA Audit Support, Estimating System Compliance