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Under new policy, DoD to reimagine cost, pricing data requirements for contractors | FederalNewsRadio.com

In effort to reduce the time it takes procure major weapons systems, the Pentagon says it wants to change the way both the department and industry think about cost and pricing data.

Under a new policy the Pentagon is planning to release in the coming days, defense contracting officers will negotiate options for a two-year follow-on contract using the same cost and pricing data that the department and industry first used to develop an initial proposal for the first year of the contract, said Shay Assad, director of defense pricing and defense procurement and acquisition policy.

Specifically, DoD’s policy will apply to the Pentagon’s procurement of sole-source military items.

“This is a huge sea change for us,” Assad said Wednesday morning at the Government Contract Pricing Summit in Rockville, Maryland. “We’re telling our contracting officers, ‘Look, we want you to expand your horizons.’ … There’s an element of risk to this, both for the companies involved as well as the government. We’re going to take that single year data and we’re now going to … price two years out with that data. That means that we both have to feel comfortable that what’s being forecasted in where we’re going to end up.”

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Under new policy, DoD to reimagine cost, pricing data requirements for contractors – FederalNewsRadio.com.

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