Tools and decision making for ongoing performance management scenario worksheet

Demand in any period that is outside the limits established by management policy.

Tools and decision making for ongoing performance management scenario worksheet

Proposal analysis - Contract pricing, reasonableness, realism analysis Comptroller General - Key Excerpts New It is a fundamental principle of federal procurement law that procuring agencies must condition the award of a contract upon a finding that the contract contains "fair and reasonable prices.

Tools and decision making for ongoing performance management scenario worksheet

The purpose of a price reasonableness analysis is to prevent the government from paying too high a price for a contract. Crawford RealStreet Joint Venture, supra. An agency may use various price analysis techniques and procedures to ensure a fair and reasonable price, including the comparison of proposed prices to each other, to prices found reasonable on previous purchases, or to an independent government estimate.

The manner and depth of an agency's price analysis is a matter committed to the discretion of the agency, which we will not disturb provided that it is reasonable and consistent with the solicitation's evaluation criteria and applicable procurement statutes and regulations. More specifically, as DISA acknowledges, the RFP stated that the agency would evaluate the offerors' fully burdened fixed-price labor rates for reasonableness and that unreasonably high prices may be grounds for eliminating a proposal from competition.

Although the RFP did not stipulate the specific price analysis technique the agency intended to use, the RFP indicated that the agency "anticipated conditions of adequate competition. Comparison of proposed prices received in response to the solicitation.

Normally, adequate price competition establishes a fair and reasonable price.

Tools and decision making for ongoing performance management scenario worksheet

Rather, the record shows that the PEB evaluated each offeror's price proposal to ensure that it was complete. Next, the PEB evaluated proposals to identify any potential unbalanced pricing. Finally, the PEB considered whether proposed prices were reasonable, concluding that every offeror's total evaluated price was fair and reasonable.

The PEB's entire price reasonableness analysis is set forth in two sentences: Price reasonableness is normally established by adequate competition FAR As this effort has had 35 Offerors provide proposals, it is implicit that price reasonableness has been determined at the macro level.

The PEB did not compare offerors' total proposed prices or their fully burdened fixed-price labor rates. Likewise, the contracting officer did not compare any prices at any level.

Instead, in the pricing memorandum, the contracting officer stated that "[t]he presumption is that all proposed prices are fair and reasonable if there is adequate competition. We find the agency's conclusions to be unreasonable. The mere receipt of multiple proposals is inadequate to assure that the prices proposed are fair and reasonable.

Put another way, the presence of competition alone does not render prices per se reasonable. As the plain language of this section indicates, a price reasonableness determination relying upon this price analysis technique requires a "[c]omparison of proposed prices received in response to the solicitation.

See Patriot Taxiway Indus. There is no indication in the record that DISA, in fact, performed such a comparison. Because the agency failed to compare offerors' prices, the agency did not consider whether any of the proposed prices were unreasonably high, an analysis that the RFP expressly contemplated.

Rather, it is the favorable comparison of an awardee's price to its competitors' prices that provides the necessary assurance that a proposed price is fair and reasonable. Furthermore, the agency's conclusion that price comparison establishes price reasonableness must be rational. Here, the record reflects a wide variance among total evaluated prices and labor rates.

For instance, the highest-priced offeror proposed a total price that was more than two and a half times higher than the price of the lowest-priced offeror. The proposed total evaluated prices of the awardees contain a similarly wide variance with the highest-priced awardee proposing a price that is more than double the price of the lowest-priced awardee.

While this disparity does not establish that any particular offeror's prices are unreasonably high per se, it did not preclude a conclusion that the reasonableness of the higher-priced offerors' prices could not be established via comparison to their competitors' prices.

In our view, the disparity should have placed DISA on notice that it needed to take a closer look at what was driving the higher prices.

schwenkreis.com HCS Week 4 Tools and Decision Making for Ongoing Performance Management Scenario Worksheet Tools and Decision-Making for Ongoing Performance Management Scenario Worksheet. Tools and Decision Making for Ongoing Performance Management Scenario Worksheet As a group, select one scenario that is most applicable to your chosen organization type and complete the worksheet. This worksheet will provide the foundation for completing the Tools and Decision Making for Ongoing. Test Automation Design Doug Hoffman, BA, MBA, MSEE, ASQ-CSQE Software Quality Methods, LLC. (SQM) schwenkreis.com [email protected]

As a final matter, intervenor Vencore points out that the agency ranked the 35 offerors from lowest to highest based on their total proposed prices and argues that "[t]his alone satisfies the Agency's obligation to assess reasonableness. As an initial matter, although the depth of an agency's price analysis is a matter within the sound exercise of the agency's discretion, it must be consistent with the solicitation's evaluation criteria.

The record shows that the agency evaluated cost proposals for reasonableness, realism, and completeness before making adjustments to certain costs as part of its MPC analysis. With respect to cost reasonableness, the agency conducted a standard deviation analysis, first based on the average total cost of the four submitted proposals, and then additionally included the IGCE as part of the analysis.

AR, Tab 49, Cost Evaluation, at The agency also found all proposals to be complete. The agency also conducted a cost realism analysis, comparing cost elements of each proposal. The record reflects that the agency adjusted offeror rates where it was able to obtain DCAA verification of those rates, but did not otherwise adjust any other direct labor rates or associated indirect costs.

The record does not show that the agency made any other adjustments to direct labor rates or associated indirect rates for offerors where rate verification was not obtained from DCAA. As an initial matter, the use of historical direct labor rates verified by DCAA as part of a cost realism evaluation is generally unobjectionable.

The record does not reflect any analysis of non-DCAA verified rates, even though the agency had available to it rates proposed by other offerors, including the incumbent, for comparison. Therefore, we sustain the protest on this basis.

Jul 5, Cost realism analysis is the process of independently reviewing and evaluating specific elements of each offeror's proposed cost to determine whether the estimated proposed costs are realistic for the work to be performed; reflect a clear understanding of the requirements; and are consistent with the unique methods of performance and materials described in the offeror's technical proposal.· Resource: Tools and Decision Making for Ongoing Performance Management Presentation Grading Criteria · Select one organization type from the various organizations your Learning Team analyzed as part of your Week Four assignment and build on your knowledge acquired from all previous assignments to complete the final .

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