Difference between revisions of "TINA - SWEEP"

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== TINA SWEEP==
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== TINA SWEEP - Overview==
  
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When certified cost or pricing data are required in accordance with FAR 15.406-2, the  Contracting Officer requires the (Prime)Contractor to complete and submit a Certificate of Current Cost or Pricing Data.  This requirement also flows down to a lower tier subcontractor if the TINA requirement is met.  A part of ensuring that the estimate is current, complete and accurate and providing assurance to the signer of the certificate is the process of performing a “TINA Sweep” prior to the submittal of the certificate.   
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When certified cost or pricing data are required in accordance with FAR 15.406-2, the  Contracting Officer requires the (Prime)Contractor to complete and submit a Certificate of Current Cost or Pricing Data.  This requirement flows down to a lower tier subcontractor if it is a TINA procurement/contract.  Part of ensuring that the estimate is current, complete and accurate and providing assurance to the signer of the TINA Certificate is the process of performing a “TINA Sweep” prior to the submittal of the certificate.   
  
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Making sure that an bid/proposal/estimate is current, complete and accurate, is important, for a number of reasons, such as:
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Making sure that an bid/proposal/estimate is current, complete and accurate, is important, for a number of reasons.  From a compliance risk perspective, is ensures the bid is current, complete and accurate.  From a business perspective it is one last chance to review the data and ensure the contractor is not underbidding the contract.
  
 
    
 
    
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1. The contractor does not undercharge or "cheat" themselves,
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Making sure the bid/estimate is current, complete, and accurate is important especially if actual costs incurred varies from the costs that were estimated.
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2. The US Government is not being overcharged
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3. Making sure the bid/estimate is complete is very important that if the bid varies from the actual costs incurred later, all facts have been disclosed.  Facts that have been missed, eliminated, (not disclosed) could be argued later that they were relevant to negotiations and the pricing of the contract.  
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Post award audits are used to ensure that the US Government was not overcharged.  DCAA performs audits of DoD contracts.  An auditor will determine if the negotiated contract price was increased by a significant amount because the contractor did not submit or disclose accurate, complete, and current cost or pricing data.  To show that defective pricing exists, the auditor must establish each of the following points:
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:i  The information in question fits the definition of cost or pricing data, and
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:ii  Accurate, complete, and current data existed and was reasonably available to the contractor before the agreement on price, and
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:iii  Accurate, complete, and current data were not submitted or disclosed to the Contracting Officer and that these individuals did not have actual knowledge of such data or its significance to the proposal, and
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4.  The Government relied on the defective data in negotiating with the contractor, and
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==Requirements==
  
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'''All cost or pricing data submitted''' in support of negotiations '''must be reviewed in a TINA sweep''' to ensure that disclosed cost or pricing data is accurate, current, and complete as of the date of agreement on price (or a mutually agreed date close to the price agreement).  The TINA sweep helps to identify if there is more current data acquired prior to the agreement on price date. 
  
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5.  The Government reliance on the defective data caused an increase in the contract price.
 
  
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'''All cost or pricing data submitted''' in support of negotiations '''must be reviewed in a TINA sweep''' to ensure that disclosed cost or pricing data is accurate, current, and complete as of the date of agreement on price (or a mutually agreed date close to the price agreement).  Identifying more current data acquired prior to the agreement on price date (certification date), or clarifying whether certain information represents cost or pricing data is imperative during this process.
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In large corporations, the sweep is not limited to the site performing the negotiations, but must be flowed up to higher level management levels such as Home Offices.  Often times, strategic and tactical decisions are made at that level and due to the sensitivity of such decisions, communications of those decisions are delayed.  Flowing up a TINA Sweep document to those levels, prevents potential defective pricing.  Note, it may not be practical in large corporations to flow every TINA Sweep to the Home Office.  In such cases, there needs to be an alternate control such as a requirement for the Home Office to notify sites when there are decisions that affect cost or pricing data.
  
 
==TINA SWEEP FORM==
 
==TINA SWEEP FORM==
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Attachment I
 
 
Cost or Pricing Data Review and Certification
 
Cost or Pricing Data Review and Certification
 
"TINA Sweep" Form
 
"TINA Sweep" Form
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===5. Indirect Rates and Factors===
 
===5. Indirect Rates and Factors===
  
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Are the indirect rates and factors utilized in the proposal in accordance with the latest forecast and approved for forward bidding purposes?  Are current indirect rates and factors significantly different from the approved rates Cobham has? Do the rates consider future actions or other known facts that would significantly change the price?  Are those factors included in the rates?
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Are the indirect rates and factors utilized in the proposal in accordance with the latest forecast and approved for forward bidding purposes?  Are current indirect rates and factors significantly different from the approved rates. Do the rates consider future actions or other known facts that would significantly change the price?  Are those factors included in the rates?
  
 
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Sign/Date:______________________________________________
 
Sign/Date:______________________________________________
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===6. Escalation and Time Phasing===
 
===6. Escalation and Time Phasing===

Latest revision as of 13:33, 27 October 2021

Contents

TINA SWEEP - Overview

When certified cost or pricing data are required in accordance with FAR 15.406-2, the Contracting Officer requires the (Prime)Contractor to complete and submit a Certificate of Current Cost or Pricing Data. This requirement flows down to a lower tier subcontractor if it is a TINA procurement/contract. Part of ensuring that the estimate is current, complete and accurate and providing assurance to the signer of the TINA Certificate is the process of performing a “TINA Sweep” prior to the submittal of the certificate.


Making sure that an bid/proposal/estimate is current, complete and accurate, is important, for a number of reasons. From a compliance risk perspective, is ensures the bid is current, complete and accurate. From a business perspective it is one last chance to review the data and ensure the contractor is not underbidding the contract.


Making sure the bid/estimate is current, complete, and accurate is important especially if actual costs incurred varies from the costs that were estimated.

Requirements

All cost or pricing data submitted in support of negotiations must be reviewed in a TINA sweep to ensure that disclosed cost or pricing data is accurate, current, and complete as of the date of agreement on price (or a mutually agreed date close to the price agreement). The TINA sweep helps to identify if there is more current data acquired prior to the agreement on price date.


In large corporations, the sweep is not limited to the site performing the negotiations, but must be flowed up to higher level management levels such as Home Offices. Often times, strategic and tactical decisions are made at that level and due to the sensitivity of such decisions, communications of those decisions are delayed. Flowing up a TINA Sweep document to those levels, prevents potential defective pricing. Note, it may not be practical in large corporations to flow every TINA Sweep to the Home Office. In such cases, there needs to be an alternate control such as a requirement for the Home Office to notify sites when there are decisions that affect cost or pricing data.

TINA SWEEP FORM

This form needs to be completed and retained.

TIMING: Timing of the sweep should be as close to the negotiation time as possible to assure that efforts are not expended unnecessarily. BD is responsible for communicating the timing of negotiations so that a compliant sweep can be completed. Completing the sweep prior to final price agreement is ideal, however it can be done at a point in time close to the final agreement, as long as it is understood that price redetermination may need to be made.


Cost or Pricing Data Review and Certification "TINA Sweep" Form RFP/Solicitation No.: Program Name: Description: Customer Name: Program Manager: Date of Price Agreement: Pricing Spec.: Date of Sweep: Contracts Rep.: Date Response Due:

Distribution:

Pricing: ______________________________________

Contracts: ______________________________________

Procurement: ______________________________________

Program Office/Bus. Dev. ______________________________________

Operations/Engineering: ______________________________________

Finance: ______________________________________

Other: ______________________________________

1. Labor Estimates

Is there current actual historical for the same or similar effort, configurations and/or quantities available that were not available when the proposal was compiled. Do those numbers vary significantly from what was proposed? If the new numbers had been utilized, would they produce cost and pricing that is significantly different than what was proposed. If yes, in addition to completing this form, you need to advise the proposal manager, project manager, program manager or other appropriate individual, so that that person can review the information, and disclose it, if necessary.

For labor, there are two elements that need to be reviewed in detail. They are:

a) The estimated Direct Labor Rates, and

b) The estimated time it takes to perform each function.

You need to have available for audit, backup for each element of labor. You also need to be able to demonstrate that these elements are estimated with accuracy, completeness, and with current information, describing the methodology and techniques utilized in the compilation of the estimates.

Category Responsible Area Responsible Person Acknowledge this area has been reviewed and it is o.k.
Eng Labor Engineering John Smith Reviewed and O.K.
Mfg Labor Manufacturing Jane Doe Reviewed. Mfg Labor has been updated in bid. It is "now" o.k.
Example Example Example Example


Comments:____________________________________________________________________________________________________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________________________________________________________________________________________________________


Sign/Date:______________________________________________

2. Bill-of-Materials

Have any additional quotations been received for proposed materials prior to the above date? Have any POs been placed for any proposed materials? If so, at the same price that is in this proposal. Have any new make/buy decisions been made? Is there any other related information that would be pertinent to the proposed material costs?

Category Responsible Area
Material Buyer/Supply Chain
Outside Vendor Processing Buyer/Supply Chain

Critical questions are:

a) Has anything changed since the proposal was compiled that would change the cost/price in the proposal?

b) Do we have adequate documentation, and have described the methodology in the proposal that was utilized in compiling the estimate?

Comments:____________________________________________________________________________________________________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________________________________________________________________________________________________________

Sign/Date:______________________________________________

3. Subcontracts

Have any additional quotations or proposals been received for proposed subcontract items prior to the above date? Have any POs been placed or contracts entered into for any proposed subcontracts? Have any new make/buy decisions been made? Is there any other related information that would be pertinent to the proposed subcontract costs?

Category Responsible Area
Subcontractors* Buyers/Supply Chain

a) For subcontractors where price is based on their cost and pricing data, has that information been reviewed, and is that data required to be certified?

  • see 15.404.3

Comments:____________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________


Sign/Date:______________________________________________


4. Other Direct Costs

These include, but are not limited to: use of temporary agency personnel, travel and per diem costs, service center costs, lease or rental costs, and shipping costs. Do you have more current information than was used in the proposal?

Other Direct Costs Responsible Area
Travel


Comments_____________________________________________________________________________________________________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________________________________________________________________________________________________________


Sign/Date:______________________________________________


5. Indirect Rates and Factors

Are the indirect rates and factors utilized in the proposal in accordance with the latest forecast and approved for forward bidding purposes? Are current indirect rates and factors significantly different from the approved rates. Do the rates consider future actions or other known facts that would significantly change the price? Are those factors included in the rates?

Category Responsible Area
Indirect Rates Finance
Example Example


Comments_____________________________________________________________________________________________________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________________________________________________________________________________________________________


Sign/Date:______________________________________________

6. Escalation and Time Phasing

Will the work effort be implemented as proposed? Is this work to be performed over multiple years? Are escalation factors based on historical information and current outlooks and anticipated payroll increases, and material increases?

Category Responsible Area
Labor Escalation
Material Escalation

Comments______________________________________________________________________________________________________________________________________________________________________________________________________________________

Sign/Date:______________________________________________

7. Additional Comments

If you feel any information not listed above may have an impact on this proposal and proposed costs and price, please list the information here.

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Sign/Date:______________________________________________



Related Topics

Defective Pricing

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