CLC056 Analyzing Contract Cost s
lesson 1 - Costs and Cost Analysis RESOURCES 1 PRINT 1 HELP
Introduction
Welcome to Costs and Cost Analysis!
You might be wondering, "How will the
information in this lesson help me in my j ob as a
contract specialist?"
This lesson describes contract costs and cost
analysis. As a contract specialist, you need t o
know about costs and cost analysis including:
• Fundamentals of cost analysis
• Government pricing objectives
• Key cos t analysis terms, techniques, and
considerations
• Distinctions between cost analysis, price
analysis, and cost realism analysis
• Cost estimating methods
You may be familiar with some or all of the
information above but an overview would be
beneficial.
..... I Pagel of34 I .....
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,Long Description
Monitor screen displaying Jessica, holding a sign that says, "Welcome to an Overview of Costs and Cost
Analysis!"
,CLC056 Analyzing Contract Cost s
lesson 1 - Costs and Cost Analysis RESOURCES I PRINT I HELP
Obj ectives
At the end of this lesson, you will be able to:
• Iden tify the fundamentals of cost analysis
• Distinguish between cost analysis, price
analysis and cost realism analysis
• I dentify cost analysis t erms and t echniques
used when developing a prenegotiation
position
Sound good? All right, let's get started!
<1111111111111 1 Page 2of34 , ......
Back t ) Next
, CLC056 Analyzing Contract Costs
lesson 1- Costs and Cost Analysis RESOURCES 1 PRINT 1 HELP
Overview - Cost Analysis
What is cost analy sis? Cost analysis is the review and evaluation of the separate cost elements and
proposed profit/fee of an offeror's certified cost or pricing data or data other than certified cost or pricing
data.
I t is important to evaluate the separate cost elements and proposed profit/fee to determine how the
proposed costs represent the cost of the contract, assuming reasonable economy and efficiency .
RESOURCES PROPOSED RATES AND FACTORS TABLE COST BREAKDOWN SUMMARY
2008 2009 2010 2008 2009 2010 2008 2009 2010
Raw Material Design Eng $50/hr $55 $60 Material &SubK
Sub Cont racts Test Eng Material 0/H
Design Eng Hrs 20SO 1025 M fg (fab) Engineering
Test Eng Hrs 1025 2050 Mfg (Assmbly) Engineering 0/H
Mfg (Fab) Mat Scrap Manufacturing
Mfg (Assmbly) Escalat ion MfgO/H
(Etc.)
"'111111111111 1 Page3of34 , ......
Ba ck Iii 1 Next
lesson 1 - Costs and Cost Analysis RESOURCES 1 PRINT 1 HELP
Introduction
Welcome to Costs and Cost Analysis!
You might be wondering, "How will the
information in this lesson help me in my j ob as a
contract specialist?"
This lesson describes contract costs and cost
analysis. As a contract specialist, you need t o
know about costs and cost analysis including:
• Fundamentals of cost analysis
• Government pricing objectives
• Key cos t analysis terms, techniques, and
considerations
• Distinctions between cost analysis, price
analysis, and cost realism analysis
• Cost estimating methods
You may be familiar with some or all of the
information above but an overview would be
beneficial.
..... I Pagel of34 I .....
Back Next
,Long Description
Monitor screen displaying Jessica, holding a sign that says, "Welcome to an Overview of Costs and Cost
Analysis!"
,CLC056 Analyzing Contract Cost s
lesson 1 - Costs and Cost Analysis RESOURCES I PRINT I HELP
Obj ectives
At the end of this lesson, you will be able to:
• Iden tify the fundamentals of cost analysis
• Distinguish between cost analysis, price
analysis and cost realism analysis
• I dentify cost analysis t erms and t echniques
used when developing a prenegotiation
position
Sound good? All right, let's get started!
<1111111111111 1 Page 2of34 , ......
Back t ) Next
, CLC056 Analyzing Contract Costs
lesson 1- Costs and Cost Analysis RESOURCES 1 PRINT 1 HELP
Overview - Cost Analysis
What is cost analy sis? Cost analysis is the review and evaluation of the separate cost elements and
proposed profit/fee of an offeror's certified cost or pricing data or data other than certified cost or pricing
data.
I t is important to evaluate the separate cost elements and proposed profit/fee to determine how the
proposed costs represent the cost of the contract, assuming reasonable economy and efficiency .
RESOURCES PROPOSED RATES AND FACTORS TABLE COST BREAKDOWN SUMMARY
2008 2009 2010 2008 2009 2010 2008 2009 2010
Raw Material Design Eng $50/hr $55 $60 Material &SubK
Sub Cont racts Test Eng Material 0/H
Design Eng Hrs 20SO 1025 M fg (fab) Engineering
Test Eng Hrs 1025 2050 Mfg (Assmbly) Engineering 0/H
Mfg (Fab) Mat Scrap Manufacturing
Mfg (Assmbly) Escalat ion MfgO/H
(Etc.)
"'111111111111 1 Page3of34 , ......
Ba ck Iii 1 Next
