FED GOV CON - Pricing: Under The Microscope in Source Selection & Evaluation

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Jennifer Schaus & Associates SERVICES FOR US FEDERAL GOVERNMENT CONTRACTORS

WEBINAR WEDNESDAYS – 2018 WASHINGTON, DC OFFICE PHONE: 2 0 2 – 3 6 5 – 0 5 9 8


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

www.JenniferSchaus.com

Join Us for Our 2018 Series of Complimentary Webinars on various US Federal Government Contracting Topics. Presenters are industry experts sharing knowledge about the competitive government contracting sector. Find all of our Govt Contracting webinars (free download) at www.JenniferSchaus.com

Contact Us @ 2 0 2 – 3 6 5 – 0 5 9 8


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

www.JenniferSchaus.com

REMINDERS: All webinars are complimentary. All webinars are recorded. They are found on our website and on YouTube. Please send your questions to the speaker directly. Thank you for participating.


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

www.JenniferSchaus.com

ABOUT JENNIFER SCHAUS & ASSOCIATES: - Based in downtown Washington, DC; -

A la carte services for Federal Contractors;

- Proposal Writing to GSA Schedules, 8a Cert, Contract Admin & more!; Educational webinars; -

Networking events and seminars;

WEBSITE: http://www.JenniferSchaus.com


Our Upcoming Events: Tuesday, JAN 15 – 2019 CLASS:

Strategies For Teaming, Partnering & Sub-Contracting https://www.eventbrite.com/e/strategies-for-teaming-partnering-sub-contracting-tickets-51163654869

Tuesday, JAN 29 – 2019 CLASS:

Introduction to GSA Schedules https://clients.virginiasbdc.org/workshop.aspx?ekey=140380091\


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

www.JenniferSchaus.com

In our weekly newsletter OR In our 2019 Webinar Wednesday Series Contact Mallory.Flowers@JenniferSchaus.com for more information


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

www.JenniferSchaus.com

ABOUT OUR SPEAKER: Mike Gallo  27 years of cost and price analysis experience  ME/BS Industrial Engineering, SUNY Buffalo  Partner, Federal Pricing Group, LLC o For Govcons: Pricing strategy, cost/price volume lead, pricing models, subcontractor pricing/reviews o For Federal Agencies: Cost/price analysis, independent Gov’t cost estimates, cost realism reviews


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

www.JenniferSchaus.com

Pricing: Under The Microscope in Source Selection & Evaluation Wednesday, December 19, 2018


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

www.JenniferSchaus.com

How is Price Evaluated? Is It • Affordable? • Reasonable? • Realistic? • Necessary? • Allowable? • Balanced? • Best Value or Lowest Price?

Comparison Sources  Direct comparison  Historical prices paid • Vendor quotes • Parametric estimates • List/catalog prices • Independent Gov’t est. • Other cost/pricing data See FAR 15.404-1(b)(2)


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

www.JenniferSchaus.com

Pricing Pitfalls • • • • •

Proposal Issues RFP compliance Cost/Tech inconsistency Pricing model errors Poor basis/substantiation Subcontractors

• • • • •

Pricing Strategy Issues No indirect rates strategy Numerous subcontractors Unrealistic pricing Lack of market awareness Poor estimating


Indirect Rate Scenarios

Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

www.JenniferSchaus.com

Economies of Scale? New Normal?

Investment Needed? No impact? (Many bid here) Contract award date


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

www.JenniferSchaus.com

Avoiding the Pricing Pitfalls Issue Compliance Inconsistencies Poor substantiation Pricing model bugs No indirect strategy Lack of realism

Action/Strategy/Approach Read RFP thoroughly; pricing requirements matrix Start pricing earlier; plan for changes Document, document, document Treat Excel models like software. Engineer and test. Create indirect forecast models to project impacts Adopt top-down sanity checks


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

www.JenniferSchaus.com

Final Thought – Competitive Pricing Takes Time

Plan/ Strategize

Proposal

Solutioning Team vetting Rate impacts Incumbent research

Contract Award

RFP

Sources Sought • • • •

Execution/ Harvest

• • • •

Price exhibits Cost volume Basis of estimate Subcontractors

• • • •

De-brief data Protest data Post mortems FOIA Requests


THANK YOU FOR ATTENDING!!

WWW.JENNIFERSCHAUS.COM

QUESTIONS? CONTACT OUR SPEAKER Mike Gallo AT

(240) 397-9409 AND AT

SERVICES FOR US FEDERAL CONTRACTORS

mgallo@federalpricinggroup.com

OFFICE: 2 0 2 – 3 6 5 – 0 5 9 8


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