Posted by Selection of Data Source for Systems Contractor Labor Rates and Overheads and Their Application
Applications Track
AP03_Presentation_SelectionofDataSourceforSystemContractorLaborRatesandOverhead_Wilkerson
Abstract:
Selection of the best data source can reduce the uncertainty in system contractor labor rates and overheads, facilitate improved government program budgeting, and produce savings for the government in contract negotiations. This presentation compares and contrasts the use of historical contract data vs. Forward Pricing Rate Recommendations (FPRRs) in determining contractor labor rates and overheads in the preparation of Independent Government Cost Estimates (IGCEs). The advantages and disadvantages of each approach are discussed. The development of forward pricing rates beginning in the proposal stage, through DCMA recommendation and DCAA audit to a bilaterally signed agreement is covered. Challenges such as mapping position descriptions from the Cost Analysis Requirements Document (CARD) to the FPRR are addressed. The pitfalls of using composite labor rates are evaluated. Recent guidance from the Under Secretary of Defense for Acquisition Technology & Logistics (USD ATL) regarding Forward Pricing Rate Recommendations (FPRRs) and Forward Pricing Rate Agreements (FPRAs) is covered. Quantity of labor required to complete specified tasks, labor related cost drivers and industry techniques for pooling overhead rates are also covered. The target audience for this presentation is the government cost estimator, at the program or service component level.
Author(s):
Brian Wilkerson
Office of the Deputy Assistant Secretary of the Army for Cost & Economics
Mr. Wilkerson is an Operations Research Analyst in the office of the Deputy Assistant Secretary of the Army (Cost and Economics). He has over fifteen years of government experience and has held positions as an infantry officer, systems engineer, program management engineer, and team leader of the cost analysis team in a government Project Management Office. Prior to his current assignment he was assigned as a general engineer to the Advanced Energy Armaments Division of the Armament Research Development and Engineering Center (RDECOM). He is a member of the American Society of Military Comptrollers and the Society of Cost Estimating and Analysis. He has B.S. degree in Mechanical Engineering from the United States Military Academy at West Point and is a graduate of the Army Management Staff College.
Wallace Riggins
Office of the Deputy Assistant Secretary of the Army for Cost & Economics
Mr. Riggins is an Operations Research Analyst in the office of the Deputy Assistant Secretary of the Army (Cost and Economics). He has over thirty years of government experience and has held positions as a supervisory mathematician, supervisory computer specialist, and team leader (cost analyst) at the U. S. Army Cost and Economic Analysis Center. Prior to his current assignment he managed the DFAS Bill, Judgment Fund and Contract Finance Programs in the Office, Deputy Assistant Secretary of the Army (Financial Operations). He is a member of the Society of American Military Engineers and American Society of Military Comptrollers. He has B.S. degree in Mathematics from Elizabeth City State University and is a graduate of the Armed Forces Staff College.