Cost and Price Analysis Course

The course focuses on the price build and explains direct and indirect costs, fixed and variable costs, allocation and apportionment of the overhead and methods of overhead recovery.

Direct labour rates, different types of material and labour and factors impacting their cost are also included.

Practical exercises are employed throughout the course to consolidate learning.

The course provides an introduction to the Questionnaire on the Method and Allocation of Costs  (QMAC) document prepared by contractors to disclose their cost accounting practices and which is to be subsequently agreed by the MOD.

The single source procurement framework and consideration of proposals from a contractor’s point of view are additionally addressed.

While drawing on a MOD context, the course has wider applicability for non-MOD employees and suppliers.  It is part of a suite of MOD courses designed to assist commercial officers' progress from awareness to expert level but has wider applicability to non-MOD and wider government employees.

You will learn how to:

• assess a contractor’s proposal
• know which questions to ask to check validity and evidence in support of the proposed costs
• gain the knowledge and confidence to challenge contractors where necessary

This course provides fundamental understanding for commercial officers involved in the analysis of contractor proposals, whether the associated procurement represents value for money, and the knowledge and confidence to challenge contractors where necessary.