Dd Form 1547

Small Business Federal Government Contracting: WEIGHTED GUIDELINES ...

Although policy in FAR Part 215-404-4 states that contracting officers ….” do not perform a profit analysis when assessing cost realism in competitive acquisitions”, it is wise to understand that during Steps A trough D above, the contracting officer and his representatives are indirectly forming opinions of the risk to the contractor and the mix of cost elements in the proposal. That opinion directly effects profit negotiations and judgments at Step E, above. It should be noted that the Facilities Capital Cost Employed (FCCM) factor (a separate DD Form 1861) does not always enter into small business negotiations, because many start-ups and smaller enterprises do not propose it as part of their allowable costs due to elements they cannot demonstrate in capital investment, land, buildings and similar items. You can influence the government negotiator (s) on the weighted guidelines profit elements during the early stages of negotiations as you settle on cost factors. You do so by presenting the data and narrative basis of estimate in such a fashion as to identify risk and other key area of weighted guidelines analysis. Insure the technical, management and cost volumes of your proposal, if they are required, are consistent in that regard. Update your DD Form 1587 in your working file and prepare to use it as you settle on profit to conclude negotiations. Relate your profit position to weighted guidelines cost elements, as agreed upon with the government, supported by your proposal and any other documented disclosures you have submitted during negotiations. Doing so will support your position on profit and give the contracting officer an opportunity to accept it. Veteran 2 tours US Army Vietnam. As a Volunteer Counselor, I assist many small businesses with their planning and operations processes. Since I spent over 30 years in federal government contract management and 10 years in small business consulting, I naturally get many inquiries from small companies wishing to enter or enhance their position in federal government contracting. This site is intended to assist in answering those questions. Those wishing a free counseling session may search on "Kenneth Larson" at: http://www.micromentor.

Code of Federal Regulations, Title 48, Federal Acquisition Regulations System, Chapter 2 (Pt. 201-299), Revised as of October 1, 2009

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