Most prime contractors include one or more subcontractors in their proposals to the Government. For solicitations issued pursuant to FAR Part 15, 15.404-3(b) requires the prime contractor to conduct appropriate cost and price analysis to establish the reasonableness of the price and to include the results of these analyses in the cost proposal. Cost analysis involves reviewing each cost element, (i.e. for labor the direct labor rate, escalation, indirect rates and profit) to determine if each element is reasonable and ties to the contractor’s accounting records. As this information is highly proprietary, most subcontractors provide the prime contractor with a sanitized proposal consisting of only the fully burdened labor rates and include their cost or pricing data in a sealed package for audit by the government.
Source: January Monthly Insights Newsletter | Subcontractor Price Analysis
Top 5 Government Contracting Events in October | Red Team Consulting
There are tons of valuable government contracting events in the DC metro area, from networking happy
