Revised 09/2007
CON 217 - Cost Analysis and Negotiation Techniques (3 CR.)
Course Description
Teaches the students the pricing skills, methods and techniques necessary to analyze a cost proposal. Presents an opportunity to learn and apply leadership, problem-solving, and negotiation skills to develop a government contract negotiation objective. Applies the knowledge and skills gained in this course to cover an integrated case study approach for contract award. Lecture 3 hours.
General Course Purpose
Provides a concentrated review of the principles, techniques and objectives of the acquisition process to analyze a contractor’s cost proposal and to develop a negotiation goal. Students will be presented with the concepts, definitions and relationships of cost elements to pricing analysis. Examines application of audit information for break down of direct material and labor, indirect costs in overhead and general and administrative costs will. Focuses on contract award from a practical application of negotiation skills. Successful completion of this course will assist contracting employment entry at DAU level two.
Course Prerequisites/Corequisites
None.
Course Objectives
Upon completion of this course the Student will be able to:
- Determine when cost analysis should be used.
- Identify the use and application of a contract audit.
- Calculate a cost objective for direct material, direct labor, other direct costs, Facilities Cost of Money and profit or fee.
- Calculate a price/cost objective using simple regression analysis, learning curve analysis, and other statistics.
- Make a determination on a contractor’s estimating and accounting system.
- Outline the process for conducting contract negotiations.
Major Topics to Be Included
- Cost elements analysis.
- Audit application
- Proposal analysis
- Price reasonableness
- Statistics
- Regression analysis
- Learning curve analysis
- Negotiation strategies and techniques