ELEMENT PROPOSED FIELD PRE-NEG Material Material O/H Labor Labor O/H Subcontracts ODCs G&A Subtotal COM Fee/Profit TOTAL b. Provide a narrative addressing the individual elements of cost . Identify factors under major cost elements to show how the prenegotiation position was developed. Identify and detail areas of nonconcurrence with audit or field recommendations and provide justification for the nonconcurrence. Detail can be included as an attachment where necessary. If the clearance is for definitization of a Letter Contract or existing commitment, specifics on actual costs incurred should be included (i). Material. (a). Summary of source and contractor's estimates firm purchase orders, quotes, – competition, catalog items, estimates, prior history. (b). Attrition/Scrap/Variance factors applied to the net bill of material. (c). Make/Buy plans. (d). Summary of field sampling technique. Dollar percentage of items reviewed to total dollar value of bill of material. (e). Historical negotiation reduction factor contractor experiences when converting vendor quotes to firm purchase orders. (f). For high dollar value items, review prime contractor negotiator's analysis. Discuss use of actual cost data to develop negotiation positions. Utilize most recent historical actual cost for analysis. Compare unit prices with historical prices. (g). Discuss findings of assist audits and explain if any audit recommendations were not incorporated into the Government position. (h). Identify the quantity and value of recurring and nonrecurring material. (i). Discuss offeror's efforts to combine common parts for this effort and other programs in-house. Identify the percent of material under subject acquisition which is being bought under corporate pricing agreements. (ii). Material Overhead.
ELEMENT PROPOSED FIELD PRE-NEG Material Material O/H Labor Labor O/H Subcontracts ODCs G&A Subtotal COM Fee/Profit TOTAL b. Provide a narrative addressing the individual elements of cost . Identify factors under major cost elements to show how the prenegotiation position was developed. Identify and detail areas of nonconcurrence with audit or field recommendations and provide justification for the nonconcurrence. Detail can be included as an attachment where necessary. If the clearance is for definitization of a Letter Contract or existing commitment, specifics on actual costs incurred should be included (i). Material. (a). Summary of source and contractor's estimates – firm purchase orders, quotes, competition, catalog items, estimates, prior history. (b). Attrition/Scrap/Variance factors applied to the net bill of material. (c). Make/Buy plans. (d). Summary of field sampling technique. Dollar percentage of items reviewed to total dollar value of bill of material. (e). Historical negotiation reduction factor contractor experiences when converting vendor quotes to firm purchase orders. (f). For high dollar value items, review prime contractor negotiator's analysis. Discuss use of actual cost data to develop negotiation positions. Utilize most recent historical actual cost for analysis. Compare unit prices with historical prices. (g). Discuss findings of assist audits and explain if any audit recommendations were not incorporated into the Government position. (h). Identify the quantity and value of recurring and nonrecurring material. (i). Discuss offeror's efforts to combine common parts for this effort and other programs in-house. Identify the percent of material under subject acquisition which is being bought under corporate pricing agreements. (ii). Material Overhead.