Common use of Category Five Clause in Contracts

Category Five. Cost & Pricing Analysis A Cost & Pricing Analysis conducted before a Request for Proposal (RFP) is released will assist a State in determining how to capture all costs related to a project, determine which method is best for evaluating cost, and if the budget for said project is realistic. Cost & Pricing Analysis is a key component to predicting the viability of a project. Because of limited resources or timing, agencies may require the assistance of an outside Contractor to assist with a Cost & Pricing Analysis for stakeholder review. Cost & Pricing Analysis may also be conducted after BAFOs are received. And Cost & Pricing Analysis may also be conducted post award for contract renewals, modifications or assistance in determination of termination due to non-compliance with contract terms. This category of services is for consultation and/or assistance with cost & pricing analysis services. Services within this category are as follows: Cost & Pricing Analysis – Contractor shall assist in developing estimated cost and price elements for the work to be performed to prepare analyses for Stakeholders to make sound decisions on the financial viability of a project. Cost & Pricing Analysis services shall include, but are not limited to: • Developing plans and alternatives for effective price competition • Informing states of impact of budget on technical, contract, and pricing outcomes • Developing approach for State’s/Stakeholder’ budget planning • Developing cost proposal solicitation documents to aid states in the development of the RFP • Analyzing contracts/programs to assess price competitiveness • Providing alternatives and research for stakeholders • Providing estimates (case-by-case based on need of State/Stakeholder). • Demonstrating value of RFP and/or new system/product to State/Stakeholder • Providing a Make-or-buy analysis • Providing a Go, no-go analysis • Developing and analyzing BAFO requests • Determining that the prices submitted by Offerors are acceptable, fair and reasonable • Providing cost analysis during RFP evaluation – services performed to help States/Stakeholders analyze the cost proposals of several vendors to find best value • Developing evaluation support documentation to help States/Stakeholders validate the reasonableness of proposed labor rates as well as indirect rates (fringe, overhead, general and administrative, and materials) • Performing independent review of each cost element within an Offeror’s cost proposal • Providing post-award services (contract renewals, modifications, assistance in determination of termination if not in compliance with contract terms) • Burn Rate Analysis • Analysis of Change Orders & Modifications • Award fee/incentive fee analysis • Closeout payment analysis Outputs: Cost and pricing analyses.

Category Five. Cost & Pricing Analysis A Cost & Pricing Analysis conducted before a Request for Proposal (RFP) is released will assist a State in determining how to capture all costs related to a project, determine which method is best for evaluating cost, and if the budget for said project is realistic. Cost & Pricing Analysis is a key component to predicting the viability of a project. Because of limited resources or timing, agencies may require the assistance of an outside Contractor to assist with a Cost & Pricing Analysis for stakeholder review. Cost & Pricing Analysis may also be conducted after BAFOs are received. And Cost & Pricing Analysis may also be conducted post award for contract renewals, modifications or assistance in determination of termination due to non-compliance with contract terms. This category of services is for consultation and/or assistance with cost & pricing analysis services. Services within this category are as follows: Cost & Pricing Analysis – Contractor shall assist in developing estimated cost and price elements for the work to be performed to prepare analyses for Stakeholders to make sound decisions on the financial viability of a project. Cost & Pricing Analysis services shall include, but are not limited to: •  Developing plans and alternatives for effective price competition •  Informing states of impact of budget on technical, contract, and pricing outcomes •  Developing approach for State’s/Stakeholder’ budget planning •  Developing cost proposal solicitation documents to aid states in the development of the RFP •  Analyzing contracts/programs to assess price competitiveness •  Providing alternatives and research for stakeholders •  Providing estimates (case-by-case based on need of State/Stakeholder). •  Demonstrating value of RFP and/or new system/product to State/Stakeholder •  Providing a Make-or-buy analysis •  Providing a Go, no-go analysis •  Developing and analyzing BAFO requests •  Determining that the prices submitted by Offerors are acceptable, fair and reasonable •  Providing cost analysis during RFP evaluation – services performed to help States/Stakeholders analyze the cost proposals of several vendors to find best value •  Developing evaluation support documentation to help States/Stakeholders validate the reasonableness of proposed labor rates as well as indirect rates (fringe, overhead, general and administrative, and materials) •  Performing independent review of each cost element within an Offeror’s cost proposal •  Providing post-award services (contract renewals, modifications, assistance in determination of termination if not in compliance with contract terms) •  Burn Rate Analysis •  Analysis of Change Orders & Modifications •  Award fee/incentive fee analysis •  Closeout payment analysis Outputs: Cost and pricing analyses.