CaseNumber:

DEFENSECONTRACTMANAGEMENTAGENCY

Cost and Pricing Center, Commercial Item Group

West Pricing Team (DCMA-ACQTD)

6th Avenue & Kipling Street, Building 16

Denver, CO 80225

MEMORANDUMFOR<CUSTOMER/REQUESTORACTIVITY<DATE>

SUBJECT:CommercialityAssessmentand PriceReasonablenessRecommendation:Prime Contractorname (and subcontractor if applicable) and proposal identifier (e.g., proposal number, RFPnumber,contractnumber)>

Table of Contents

DESCRIPTION OF PROPOSALANDCUSTOMER SUPPORT REQUESTED

REFERENCES

EXECUTIVESUMMARY OF FINDINGS

PRIME CONTRACTOR BUSINESS SYSTEMS

STATEMENT OF ADEQUACY OF CONTRACTOR’S SUBMISSION

SUMMARY OF GOVERNMENT TECHNICAL EVALUATION

GOVERNMENT MARKET RESEARCH

GOVERNMENTCOMMERCIALITY ASSESSMENT

GOVERNMENT PRICE ANALYSIS

RESTRICTIONS

ADDITIONALINFORMATION

REVIEWS AND APPROVALS

ATTACHMENTS

DESCRIPTION OF PROPOSALANDCUSTOMER SUPPORT REQUESTED

<The format can be a narrative, table, bullet statements, or any combination of formats

1.Description oftheacquisition (contractaction)

2.ProposedPeriod of Performance(PoP)

3.Customer’sname andcontactinformation

4.Name of Contractor (Prime and/or Sub)

5.ProgramName

6.Type ofpricingsupport/analysisprovided(i.e.,commercialityassessment,fair andreasonable pricerecommendation,redacted invoice review.)

7.Originalagreed to duedate andupdated due date if original due date is extended

8.CommercialProducts and/or Services beingproposed

9.ProposedDollar Value

10.Type ofpricingsupport/analysisprovided(i.e.,commercialityassessment,fair andreasonable pricerecommendation,redacted invoice review.)

11.Originalagreed to duedate andupdated due date if original due date is extended

12.Anyother applicable informationand/or tables tosummarize the proposeditem(s) (e.g.,establishedcontract terms, pricingagreements,procurement history(i.e. sole source),etc.)

<Contract,RFP, orBOANumber>
Contractor Name
Contractor CAGE Code
ProposalNumber
ProposalDate
ProposalAmount
ContractType
ProgramName
Period of Performance(PoP)
DCMA Case Number
Add ordelete asapplicable

REFERENCES

Alist of documents orother sourcesreferencedin but not attached to the report

(a) Document name and other relevantinformationabout the reference(e.g.,Date)

(b) Document name and other relevantinformationabout the reference(e.g.,Date)

(c) Document name and other relevantinformationabout the reference(e.g.,Date)

(d) Document name and other relevantinformationabout the reference(e.g.,Date)

EXECUTIVESUMMARY OF FINDINGS

<SHOULD BE PRESENTED NO FURTHERTHAN THE2NDPAGEOFTHEREPORT.

This is asummarysection and should include onlya high-levelresultsofthe analysis.Detailsupportfor the analyst’sfindingswill bepresented in the respective sectionsofthis report.Theformatcanbeabrief narrative,table,bulletstatements, oranycombinationof formats

Thissection should contain the followinginformation:

  • CommercialityReview:
  • Description ofthe itemswithpartnumber(s),and/or description of service(s)reviewed
  • Subcontractor’s commercialityassertion
  • Prime contractor’s commercialitydetermination
  • DCMA’srecommendation
  • Include applicable FAR 2.101 definition(s)
  • Ifacommercialityreview wasperformed, includethe followingstatement:

“The recommendations provided in this report donot constitute a CommercialItemDetermination(CID).DCMA’sevaluation is limited to whether theproposed item(s) meet theFAR 2.101 definition ofa commercialitem.Thisinformation is provided to assist the contractingofficer in making a CommercialItemDetermination(CID).Please seeSection GOVERNMENT COMMERCIALITY RECOMMENDATION ofthis reportwhichprovides additional information on the commercialityrecommendation.”

  • Fair and Reasonable Price Review:

P/N / DESCRIPTION / CONTRACTORPROPOSED / DCMARECOMMENDED / DIFFERENCE(CONTRACTOR PROPOSED –DCMA RECOMMENDED)
TOTALPRICE

Ifpricingsupport was performed,include thefollowingstatement: “Theprice recommendationsprovided hereinformanadequate basis for negotiation ofa fairand reasonableprice.The FAIR AND REASONABLE PRICE RECOMMENDATION section this report addresses the above recommendation in more detail.”

  • Summaryofpotential risks identified during the review. Please see the applicable section of this report for additional detail.

PRIME CONTRACTOR BUSINESS SYSTEMS

Thissection should contain:

  • Describe the impact (risk)ofanyestimatingand/or purchasingsystemdeficiencies oractionstaken to mitigatethe risk on the proposalevaluation.

STATEMENT OF ADEQUACY OF CONTRACTOR’S SUBMISSION

Thissection should contain the followinginformation:

  • Narrative summaryof contractor’scommercialityassertion(FAR 2.101) includingasummaryof contractor’sbasis of commercialityand supportingrationale

The contractor’ssubmissionsufficiencyreview must includeanexplicit statement ontheinformationreceivedforananalysissuchas“Theproposal and/orinformation receivedwasadequatetosupport a recommendedposition fornegotiation on theproposalelementsanalyzed.”

SUMMARY OF GOVERNMENT TECHNICAL EVALUATION

<A narrative summary of the Technical Evaluation highlighting pertinent information relied upon to support the Analysts’ recommendations.>

GOVERNMENT MARKET RESEARCH

<Provide a brief summary of the market research performed and the results of the market research; ensure Market Research data is included in the Case File.>

Thissection should contain the followinginformation:

  • Narrative summaryofthe market research analysis from both the price analyst and technical engineer.
  • Narrative should include any market findings of the following:
  • Alternate market sources offering the identical P/N for sale
  • Possible like/similar alternative parts,
  • Description of possible alternate P/N’s technical capabilities, pricing differences, quality differences, availability, or other critical information that would help the customer conduct negotiations

GOVERNMENTCOMMERCIALITY ASSESSMENT

<Include a narrative summary of the contractor’s commerciality assertion, including the contractor’s basis>

<Include a clear statement of DCMA’s commerciality recommendation along with details supporting the recommendation. Identify the specific FAR 2.101 commercial item definition for the DCMA recommendation.>

Ifthis reportincludesaDCMA commercialityrecommendation,insert thefollowingstatement,“The recommendationsprovided in this report do not constitute a CommercialItemDetermination. DCMA’s evaluation is limited to whether theproposed item(s) meetthe FAR 2.101 definitionofa commercialitem. This information is provided to assist thecontractingofficer in makinga CommercialItemDetermination.”

Note:DCMA CommercialityRecommendation summariescan beinnarrativeformat,table,bulleted, oranyotherformat is acceptable to clearlyandconciselysupportthe recommendedposition.

PrimeContractorP/N / SubcontractorP/N / Description / Prime ContractorAssertion / DCMA
Recommendation / Note
1
2

Notes:

1.

2.

GOVERNMENT PRICE ANALYSIS

<Include the following:

  • Proposed and recommended prices/amounts.
  • Narrative summary of DCMA’s analysis and supporting rationale including data/information relied upon to support DCMA’s recommendation.
  • Include applicable information and/or tables summarizing commercial sales data, historical prices, pricing agreements, procurement history, contract terms/conditions, etc.
  • As applicable, attach a Price Analysis spreadsheet with the supporting detailed calculations. The Price Analysis spreadsheet shall be marked FOUO.
  • Summary of the contractor’s proposed prices/amount and, as applicable, the contractor’s basis for the proposed prices.

The format can be narrative, table, bullet statements, or any combination of formats. The following is an example of the table format.

Prime ContractorP/N / SubcontractorP/N / Description / TotalQuantity / ContractorProposed / DCMA
Recommendation / Difference / Notes
# / $ / $ / $ / 1
# / $ / $ / $ / 2
TotalProposed / Price / $ / $ / $

Notes:

1.

2

RESTRICTIONS

1.The contents ofthis report should not be released or disclosed,other than to those personswhose officialduties require access in accordancewithDoD 5200.1-R,InformationSecurity,January1997 (as amended), Appendix3, paragraphAP3.2.3.Thisdocument maycontaininformation exempt from mandatorydisclosure underthe Freedom ofInformationAct.Exemption 4, ofthe Freedom ofInformationAct,whichaddresses proprietaryinformation,mayapply.

2.Proprietarydata determinations should be made in the event ofan external request for access.Unauthorizeddisclosureofproprietaryinformationviolates 18 U.S.C. 1905 (Disclosure ofconfidentialinformationgenerally)and, ifthe information is contractor bidor proposal orsourceselectioninformation, 41U.S.C. 423 (Restrictions on disclosingand obtainingcontractor bid orproposalinformation orsource selectioninformation).Anypersonwho unlawfullydisclosessuchinformation is subject to penaltiessuchas fines, imprisonment,and/or removalfromofficeor employment

3.Thisrestrictionaddresses the release of subcontractor information ordatato the primecontractor(or a high-tiersubcontractor) asprescribed in DFARS PGI215.404-3(a).Prior toreleasingthisreport tothe prime contractor, the contractingofficermust ensure it compliesanywrittenrestrictionsprovidedbythe subcontractor.Forassistance, please contactDCMA.

NOTE:Restrictions 1 and 2 above are required. *Restriction 3 above is requiredforsubcontractor proposalanalysis to support the prime contractor or higher-tiersubcontractor.

Ifthe analysis is subcontractor field pricing assistance to a primecontractorthe analyst(or otherresponsible Governmentpersonnel) shallobtainwrittenrestrictionsfrom the subcontractor forthe release of their dataprovided to theGovernment for analysis.The analyst shallprepareasecondseparatereport tocomplywith the subcontractor’swrittenrestrictionsfor release to theprime contractor andattach it to this report. A contractingofficer (PCO orACO) shallreview thesecondreport to ensurecompliance with the subcontractor’swrittenrestrictionsbefore releasingto the prime contractor.

(If Applicable)Include the followingRestriction 3 in the un-sanitizedreportprovided to thePCO/ACO.

3. Thisrestrictionaddresses the release of subcontractor information ordatato the primecontractor(or a high-tiersubcontractor) asprescribed in DFARS PGI215.404-3(a).Thisreportdoes not complywith thewrittenrestrictions on the release ofsubcontractor information or dataprovidedby<Subcontractor Name>contained inTab<Letter>. Tab <Letter> contains a secondreport complyingwiththese writtenrestrictions. Prior to releasingthesecond report, theresponsible contractingofficer must ensureit complies with the written restrictionsprovidedbythe subcontractor.

(If Applicable)Include the followingRestriction 3 in the sanitizedreport to be released to theprimecontractor(or ahigh-tier subcontractor).

3.Thismemorandum is releasable to theprime contractor in accordancewith the subcontractor’swrittenrestrictions on the release ofsubcontractor information or data provided by<SubcontractorName> contained in Tab<Letter>.Prior to releasingthis memorandum to theprime contractor, theresponsible contractingofficer must ensureit complieswith the writtenrestrictionsprovidedbythe subcontractor.

ADDITIONALINFORMATION

Uponrequest, thecost/price analyst can provideamore detailed explanation ofthe results orperform amore in-depthanalysisofanyoftheelements in the report.Alsoupon request, thecost/price analyst can provide copies ofthedocuments in the case file usedto prepare this report.

Ifyouwould like DCMAsupport inyour negotiations,please contact the undersigned,<Nameof Preparer>at<PhoneNumber> or<e-mailaddress> to discuss thetypeof supportneeded.

Upon completion of your negotiations please provide <Name of Preparer> and the other government personnel listed in the GOVERNMENT PERSONNEL INVOLVED IN THE ANALYSIS section of this memorandum with a copy of the Commercial Item Determination or the Exception to Obtaining Certified Cost and Pricing Data, and the Price Negotiation Memorandum as prescribed at FAR 15.406-3(b).

DCMA wouldappreciateyourcomments concerningthe supportyoureceivedandanyrecommendations on how we can better serveour customers.Pleasecomplete asurveyat

REVIEWS AND APPROVALS

<Name ofPreparer

DCMA CommercialItemGroup - ContractPrice/CostAnalyst

<Name ofReviewer/approver

DCMA CommercialItemGroup - Engineer

<Name ofReviewer/approver

<Title of Preparer(e.g.,LeadPrice/CostAnalyst)

ATTACHMENTS

Tab A– <Document Name andDate(if applicable)>Tab B–<Document Name andDate(if applicable)>

NOTE:If applicable, attachall in-depth analysis / reportsasillustratedabove.Ifthereareno attachments tothe report enter “None” after theATTACHMENT sectionname(i.e.,

ATTACHMENTS:None).

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FOR OFFICIAL USE ONLY – MAY CONTAIN SOURCE SELECTION INFORMATION