# DLAD PGI

- SUBPART 15.4 Contract Pricing

- PGI 15.404-1 (c)(91) One Pass Pricing

SUBPART 15.4 Contract Pricing

PGI 15.404-1 (c)(91) One Pass Pricing

(i) The OPP process may be used by the contracting officer to price sole-source items in establishing a long-term contract (LTC), addition/modification to an existing LTC, or a stand alone fixed quantity contract. The process is supported by a Memorandum of Agreement (MOA) which establishes the procedures for OPP agreed to by the contractor and the government.

(ii) The following criteria apply when using the OPP process:

(A) The contractor should:

(1) Be an active registrant in the Central Contractor Registration (CCR)

(2) Maintain acceptable purchasing, estimating, and accounting systems, approved by DCMA. Any system deficiencies noted by DCAA or DCMA which might have a material impact on price should be addressed and/or resolved prior to conducting OPP pricing sessions. If the contractor does not have approved system(s), the contractor will submit information to support that their systems will provide sufficient information to support the simultaneous proposal preparation, proposal analysis and agreement on price.

(3) For contractors with CAS covered contracts, provide the impact of any CAS non-compliances on the pricing action.

(4) Provide current, accurate, and complete cost and pricing information at each pricing session (e.g., material costs, labor hours, etc.) and supporting documentation at the item level.

(5) Have a Forward Pricing Rate Agreement (FPRA), or other agreement, for all direct and indirect rates. .

(6) Sign an OPP Memorandum of Agreement (MOA) prepared in accordance with paragraph (iii) below.

(B) The Contracting Officer shall:

(1) Comply with DLAD Part 1 review and approval thresholds and as supplemented by local policy.

(2) Discuss OPP in the Acquisition Plan or Advance Acquisition Planning Template (AAPT) for new contract actions when anticipating using the process for the acquisition.

(3) Ensure the contract file contains documentation that supports the decisions and rationale used in the development and approval of the MOA. This includes a Pre-Negotiation Business Memorandum/Price Negotiation Memorandum (PBM/PNM) that supports the rates and profit rate cited in the MOA .

(4) Establish an OPP team with the appropriate personnel to provide the broad “skill set” necessary to evaluate information at the OPP pricing session to support “real–time” decisions. At a minimum the team shall consist of the contracting officer and the cost/price analyst. Other team members may include a product specialist and/or DCMA representative.

(5) Determine if there are any system deficiencies and/or CAS non-compliances noted by DCAA or DCMA which may have a material impact on the pricing action. OPP pricing sessions should not be conducted until such conditions are resolved. All system deficiencies and/or CAS non-compliances will be addressed in the PBM/PNM, including materiality and resolution.

(6) Contact DCMA to obtain the most recent FPRA and/or to request assistance and coordination in evaluating the contractor’s proposed rates in order to establish an agreement on rates.

(7) Request a DCAA audit or other field pricing assistance as applicable to the OPP action.

(8) Document the application of the OPP process in a PBM/PNM. The PBM/PNM shall comply with requirements of FAR 15.406, DLAD Part 1 and local guidance.

(9) Ensure the following information (at a minimum) are documented for each NSN in the PBM/PNM

(i) Annual demand quantity (ADQ),

(ii) Minimum order quantity,

(iii) Selected comparison award (award number, PRC, quantity, award date, and unit price),

(iv) Adjusted comparison price which is the selected comparison award unit price adjusted for current circumstances (e.g., quantity, time and basis for adjustment)

(v) Annual demand value (ADQ times adjusted comparison price)

(vi) Exchange of information between the government and the contractor relevant to the developed price

(vii) Variance between the developed price and the adjusted comparison price

(viii) Price analyst’s recommendation on price reasonableness

(ix) Contracting officer’s decision on price reasonableness

(x) Detail explanation if the price analyst’s recommendation and the contracting officer’s decision on price reasonableness differ.

(10) Provide a spreadsheet to the Pricing Division analyst listing each NSN, the required or annual quantity, and the minimum order quantity, if applicable, at least 30 days prior to the OPP pricing session to allow sufficient time for the pricing office to select comparison prices from the procurement history and calculate adjusted comparison prices for each NSN. Additional time may be required depending on the number of NSNs to be addressed during the pricing session.

(11) Ensure prior to an OPP pricing session an agreement on rates and profit has been reached between the contractor and the contracting officer. The contracting officer shall review the criteria used for the profit rate in the MOA and ensure it is applicable to each OPP pricing session.

(12) After approval by the Chief of the Contracting Office, sign an OPP Memorandum of Agreement (MOA) prepared in accordance with paragraph (iii) below.

(C) The Chief of the Contracting Office (CCO) shall

(1) Establish review procedures for OPP MOA that includes legal counsel and any stakeholders, e.g. DCMA, DODIG, etc.

(2) Ensure a price analysis report is prepared by the pricing office and provided to the contracting officer for each NSN to be addressed during the OPP pricing session.

(3) Include OPP actions in all local procurement management reviews (PMRs).

(4) Ensure approval of OPP team membership at least two levels above the contracting officer prior to the OPP sessions. (D) The Component Acquisition Executive (CAE) shall ensure OPP actions are included in HQ DLA Procurement Management Reviews.

(E) The Center of Excellence for Pricing will conduct reviews of OPP pricing sessions and documentation to ensure compliance with the OPP policy and procedures.

(iii) The OPP Memorandum of Agreement (MOA) is an agreement signed by the contractor and the government which defines the application of the OPP process for sole-source items. A template is provided for reference. The elements of the MOA should include, but is not limited to the following:

(A) Definitions of terms used in the MOA and during the application of the OPP procurement process.

(B) The conditions under which the agreement can be terminated.

(C) Reference the agreed upon rates and factors and how they are applied to the cost data or cost information used to develop prices.

(D) Recommended profit rate and criteria for application of this rate.

(F) The procedures for engaging in the OPP process.

(G) How the items are identified and prioritized for the OPP process (e.g., strategic material sourcing (SMS) items, items with unfulfilled orders (UFOs), high-frequency items).

(H) How items will be handled if a fair and reasonable price cannot be agreed upon by both parties (e.g., table for a future pricing session, remove from consideration for an LTC).

(I) Any FAR, DFARS, DLAD, or local regulations applicable to the process (e.g. DFARS 215.404-1?).

(J) Special conditions that may be unique to the items or the particular contractor.

(K) Identify by name or by position the individuals authorized and required to sign the MOA and the effective date of the agreement.

(iv) The steps in the OPP process are:

(A) Engage the contractor to explain the OPP process.

(B) Create a draft MOA.

(C) Conduct a “mock” or practice pricing session by selecting a small group of items and walking through the OPP process as defined in the MOA.

(D) Finalize the MOA.

(E) Request and receive an independent audit opinion, as applicable.

(F) Conduct “live” pricing sessions.

(G) Discuss the underlying pricing data/information during the live session that results in adequate documentation to support a recommendation to award without negotiations at fair and reasonable prices.

(H) If required, obtain a certificate of current cost or pricing data.

(I) Document the results of the OPP pricing sessions in the combined Pre-Briefing Memorandum/Price Negotiation Memorandum (PBM/PNM) and reviewed in accordance with DLAD and local guidance.

(J) Continue periodic live pricing sessions until:

(1) All viable items for the OPP process have been considered, or

(2) One or both parties decide to discontinue the OPP process.