Pricing and Cost Accounting, 3rd Edition

 

CHAPTER 8Contract Price Negotiation and Profit Guidelines

In late 2010 the Defense Contract Audit Agency (DCAA) greatly reduced the number of price proposal reviews and increased the intensity of the reviews performed. Price proposals for fixed-price type contracts under $10 million and for cost-type contract proposals under $100 million will seldom be reviewed. However, for fixed-price proposals over $100 million and cost-type proposals over $250 million, the audit will be much more in-depth than previously. For these significant proposals, DCAA will conduct a detailed “walk-through” of each proposal before an audit begins. This process can take as much as a full week and may involve the contracting officer and every contractor employee who ...