YESTERDAY AND TODAY COST ANALYST SUPPORT 2/19/20091

2/19/2009 YESTERDAY YESTERDAY AS RECENTLY AS THE LATE 1990s AS RECENTLY AS THE LATE 1990s COST/PRICE ANALYST (C/PA) ROLE MAINLY INVOLVED COST AND PRICING SUPPORT: –COST TYPE SUBCONTRACTS –SOLE SOURCE PROCUREMENTS –FEDERAL ACQUISITION REGULATION (FAR) PART 15 STRICT INTERPRETATION 2

2/19/2009 YESTERDAY AS RECENTLY AS THE LATE 1990s LIMITED INVOLVEMENT IN CUMBERSOME AND LABOR INTENSIVE COMPETITIVE SOURCE SELECTION METHODOLOGY LIMITED INVOLVEMENT IN CUMBERSOME AND LABOR INTENSIVE COMPETITIVE SOURCE SELECTION METHODOLOGY –C/PA PARTICIPATION LIMITED TO EVALUATION OF COST ESTIMATE AT AWARD PHASE 3

2/19/2009 TODAY –MOVED AWAY FROM COST CONTRACTING  VERY EXPENSIVE AND TIME CONSUMING  COPD THRESHOLD UP TO $650K –PROCUREMENT HAS A STRONG PREFERENCE FOR COMMERCIAL CONTRACTING  USE Best Value Source Selection (BVSS) for competitive awards (best combination of technical attributes and price) –MORE LATITUDE IN DEFINING COMMERCIALITY AND COMPETITION 4

2/19/2009 CURRENT CONTRACTUAL PREFERENCES COST/PRICE ANALYST (C/PA) ROLE NOW MAINLY INVOLVES: FIXED PRICE FIXED PRICE TIME AND MATERIAL TIME AND MATERIAL ELECTRONIC ORDERING SYSTEM CONTRACTS ELECTRONIC ORDERING SYSTEM CONTRACTS 5

2/19/2009 TODAY C/PA FUNCTION EMPHASIS EMPHASIS ON COMMERCIALITY EMPHASIS ON COMMERCIALITY –Emphasis on reasonableness of price in lieu of cost analysis BEST VALUE PROVIDES FOR EMPHASIS ON TECHNICAL VALUE VS COST BEST VALUE PROVIDES FOR EMPHASIS ON TECHNICAL VALUE VS COST –Competition eliminates the need for COPD, which requires audited/validated indirect rates. 6

2/19/2009 TODAY C/PA FUNCTION EMPHASIS BV PROVIDES LATITUDE FOR DETERMINING COMPETION AND NEED FOR COPD BV PROVIDES LATITUDE FOR DETERMINING COMPETION AND NEED FOR COPD PROCUREMENT TEAM APPROACH PROCUREMENT TEAM APPROACH COST ANALYST MORE OF AN ADVISOR COST ANALYST MORE OF AN ADVISOR 7

SUPPORTING AREAS C/PA ROLE AS SUBCONTRACT ADMIN. SUPPORT EOS CONTRACTS28% EOS CONTRACTS28% INCURRED COSTS/BILLINGS INCURRED COSTS/BILLINGS –Work closely with SASS20% PROPOSALS PROPOSALS –FP, T&M, CRSC, 15% CLOSEOUTS11% CLOSEOUTS11% 8 2/19/2009

SUPPORTING AREAS C/PA ROLE AS SUBCONTRACT ADMIN. SUPPORT PARTICIPATE IN ALL FORMAL REVIEW OF RFPs AND CONTRACTS10% FINANCIAL CAPABILITIES 7% TIMEKEEPING SYSTEM REV. (Pre) 3% TIMEKEEPING SYSTEM REV. (Post) 2% 9

2/19/2009 SUPPORTING AREAS C/PA ROLE AS SUBCONTRACT ADMIN. SUPPORT BVSS BUYING TEAM MEMBER1% BVSS BUYING TEAM MEMBER1% GUIDANCE ON PRICING ISSUES 1% GUIDANCE ON PRICING ISSUES 1% GUIDANCE ON SUPPORTING COMMERCIAL OR COMPETITION 1% GUIDANCE ON SUPPORTING COMMERCIAL OR COMPETITION 1% ASSISTANCE IN RFP DEV 1% ASSISTANCE IN RFP DEV 1% ACCOUNTING SYSTEM REVMIN. ACCOUNTING SYSTEM REVMIN. 10

2/19/2009 SUPPORTING AREAS PROPOSALS (15% of C/PA function) UNDER $650K 20% DCAA FURNISHED RATES90% DCAA FURNISHED RATES90% COST ANALYST DETERMINED 10% COST ANALYST DETERMINED 10% OVER $650k (COPD)80% T &M BILLING RATES60% T &M BILLING RATES60% DCAA AUDITS/RATES PROV30% DCAA AUDITS/RATES PROV30% COST ANALYST DETERMINED 10% COST ANALYST DETERMINED 10% 11

2/19/2009 SUPPORTING AREAS INCURRED COST REVIEWS (20% of C/PA function) T&M BILLING RATES60% T&M BILLING RATES60% DCAA DETERMINED RATES30% DCAA DETERMINED RATES30% COST ANALYST DETERMINED10% COST ANALYST DETERMINED10% 12

2/19/2009 STANDARD PROC COST OR PRICE ANALYSIS Price Analysis below $100,000 Price Analysis below $100,000 Cost Analysis at $100,000 or more Cost Analysis at $100,000 or more COPD $650,000 COPD $650,000 EXEMPTIONS: COMMERCIAL PRICING AND COMPETITION COST REALISM COST REALISM EVALUATE ESTIMATES FOR REALISM/BEST VALUE, COMMERCIAL, COMPETITIVE OR UNDER $650,000 13