Text Us at (614) 556-4409

Commercial Items

Commercial Item Updates in NDAA 2018

Each year brings about new budgets and new National Defense Authorization Acts (NDAA). NDAAs address funding, strategic plans, and rules affecting the defense acquisition process. NDAA 2018 is no exception and here are the highlights regarding cost, price, and accounting. The NDAA includes a number of provisions that reinforce the Congress’ commitment to the acquisition…

Increased Profit Margins On Government Contracts

What are your current profit margins on government contracts? Are you still bidding a fee of 6% to 10%? Many contractors think they must accept low profit margins on government contracts. Not true! FAR 15.404-4(a)(3) clearly states, “Both the Government and contractors should be concerned with profit as a motivator of efficient and effective contract…

Commercial Items Update

There’s been a lot of activity and chatter around commercial items, Better Buying Power (BBP), and acquisition reform over the past few weeks. For me, it’s difficult to see these as mutually exclusive topics. The Government buys $60 billion of commercial items annually, through every agency and office. BBP and acquisition reform are not going…

Better Buying Power 3.0

On September 19, 2014, Frank Kendall, Under Secretary of Defense Acquisition, Technology, and Logistics released Better Buying Power 3.0, his promise for improvements in defense acquisition, competition, and pricing. In an interview with DefenseNews, Kendall acknowledged, “We’re making progress on some of the things we started in Better Buying Power 1.0 and 2.0, but there’s…

Complications of Cost or Pricing Data

On August 26, 2014, Federal Times published an article by Michael Fischetti, executive director of National Contract Management Association, “The complications of cost and pricing.” Related to Monday’s post about Shay Assad’s demand for ‘fair prices,” Fischetti acknowledges the debate over cost or pricing data and the disparity of the parties in a refreshingly objective…

Fair Prices for Commercial Items in Government Contracts

On September 1, 2014, National Defense Magazine reported “Pentagon Will Demand ‘Fair Prices’ From Commercial Vendors.” Director of Defense Pricing,  Shay Assad claims that contractors utilizing the “of a type” commercial items in government contracts are overcharging for their products. This argument has been echoed in recent years with attempts to change the definition of…