MGT 5214 - Cost Principles, Effectiveness, and Control

Term: Fall Term 2022

Meeting Time: 

Thursdays, 5:30 - 8:30 pm

** The professor will notify learners if class sessions are changed or canceled. Additional or alternative dates and times may be coordinated for the entire class or individual learners as needed.

Class Location:

Face-to-Face Sessions will be at 

    Florida Tech-Orlando, Baldwin Park
    2420 Lakemont Ave
    Suite 190 - Room TBD
     Orlando, FL 32814

Virtual class via a combination of:

• • • CANVAS course room,
    • Zoom conferences will be posted to lessons, which will be found in the CANVAS course room in the Panopto tab
    • Zoom video conferences

 Instructor:

Dr. Marilou Overla                       

Phone: 321-795-9428                      
Email: moverla@fit.edu

* * The preferred contact method is through Course room Mail. The professor will respond within 24/48 hours.

Course Description: The course includes financial and accounting overviews of government acquisition policy and procedures. Requires completion of foundation requirements.

Course Prerequisites: Background knowledge equivalent to

     MGT 5001 Managerial Accounting, and

     MGT 5211 Procurement and Contract Management

Course Objectives:  

The course introduces and provides insight into the cost principles of contracting. It gives insight into procedures that enable the establishment of fair and reasonable prices or costs and the control/management of these elements in a contract. Completing this course, you will be expected to:

• Understand the process for sealed bids and negotiations
• Develop and understand the skills associated with evaluating bids, proposals, and quotations
• Analyze both direct and indirect labor costs
• Comprehend how to obtain a fair and reasonable price and control costs. 

Course Materials:

Required Text:

Murphy, J.E. (2009). Guide Contract Pricing (5th ed.). Vienna, VA: Management Concepts.

ISBN: 978-1-56726-241-4

Recommended Texts & Other Readings:

American Psychological Association. (2020). Publication manual of the American Psychological Association (7th ed.). Washington, DC: American Psychological Association. ISBN: 978-1433832161

(Note: https://apastyle.apa.org and https://owl.purdue.edu/owl/research_and_citation/apa_style/apa_style_introduction.html are both websites that provide excellent APA formatting assistance)

Federal Acquisition Regulation and its supplements, which may be located at one or more of the following websites:

htttp://farsite.hill.af.mil or

https://www.acquisition.gov/browsefar or

https://www.gsa.gov/policy-regulations/regulations/federal-acquisition-regulation-far or

https://www.acq.osd.mil/dpap/dars/far.html

 Other course reading material may be found in the course room.

Course Introduction and Faculty Expectations:

The course introduces and provides insight into estimating and pricing prime contracts and subcontracts.  It intends to provide an opportunity to analyze problems relating to these functions. Completing this course, you will be expected to:

• Apply appropriate formulas to evaluate or negotiate prices
• Identify sources of market intelligence
• Distinguish between market and cost-based pricing
• Understand when price analysis, cost analysis, or price realism analysis is required and the techniques utilized in each
• Comprehend when and what information to obtain from contractors to aid in determining price reasonableness
• Recognize how to structure solicitations to obtain necessary information to permit sound cost analysis and cost realism of a proposal’s components
• Apply the principles in FAR Part 31 to determine allowability, allocability, and reasonableness of proposed or incurred costs
• Calculate equitable price adjustments for contract changes
• Comprehend the role of contract auditors

This course is a combination of face-to-face and online via Zoom. You will be expected to submit your written assignment online in CANVAS. To ensure that you gain a basic understanding of cost principles, effectiveness, and cost controls, it is imperative that learners:

• Read and be familiar with the course syllabus and expectations
• Read the material before participating in the discussions and keep up with the assignments
• Ask for clarification about material or course expectations
• Read all discussion postings, notes, and mail messages within the course room
• Follow the instructions for each discussion, ensuring that you make the minimum number of posts and responses per the directions
• Be respectful of the diverse population and the perspectives by refraining from any inappropriate comments in the discussions or personal interactions
• Contact your instructor immediately if, for any reason, you are unable to participate every week

Comply with all academic honesty policies.

Grading:

Grades will be administered per the College of Business and University policies and practices.  Letter grades will be earned based on the total number of points attained, according to the following schedule:

   A = 90% or more
   B = 80% - 89.9%
   C = 70% - 79.9%
   D = 60% - 69.9%
   F = 59.9% - or less

Graded Course Activities: 

Course Activities:

Late Work Policy

Be sure to pay close attention to deadlines. There will be no make-up assignments or quizzes, and late work will not be accepted without a serious and compelling reason and instructor approval. Late assignments will have 2 points deducted.

Written Assignment Guidelines: 

• All written assignments will be submitted via CANVAS in .doc or .docx format.
• All written assignments must be submitted in the American Psychological Association Publication Manual (APA) format and via com for an Originality Report. Further clarifications will be discussed in class.
• Provide the course name, term, date, your name, and the assignment description on a cover page.
• If you include a direct quote or replicate data from any source, use quotation marks and cite the reference following APA
• Poor spelling and grammar will be penalized.

Written reports will be graded according to the scoring guidelines, and assignments not submitted on time are subject to penalty. The thoroughness of analyses (appropriate use of applicable tools, concepts, and techniques) and writing clarity (focus, style, cohesion, and writing mechanics) are essential in all course activities. Please note that in this course, spelling and grammar are graded, as they can impact the interpretation of a contract and result in contract disputes.

Weekly Schedule    

Topic Outline/Schedule

Important Note: Refer to the course calendar for specific meeting dates and times. Activity and assignment details will be explained in detail within each week's corresponding learning module. If you have any questions, please contact your instructor.

University Policies

University policies are provided in the current course catalog. They are also available on the university website. The university’s published policies govern this class. The following policies are of particular interest:

Academic Integrity/Plagiarism and Academic Dishonesty Policy:

Honesty and integrity are integral components of the academic process.  Students are expected to be honest and ethical at all times in their pursuit of educational goals per Florida Tech’s policy on Academic Honesty in the Student Handbook.  Any student violating the policy will receive an “F” for that assignment and/or an “F” in the course.

Drops and Withdrawals: 

Please be aware that, should you choose to drop or withdraw from this course, the date you notify the university of your decision will determine the amount of tuition refund you receive. Please refer to the university policies on drops to find out what the deadlines are for dropping a course with a full refund and withdrawing from a course with a partial refund.  Please consult the academic schedule for the exact date for your course and the deadline to drop a course with a grade of “W” http://www.fit.edu/registrar/calendar/. Refer to the university's website for the complete Drop / Withdrawal Policy.

Incomplete (I) Grade Policy:

An incomplete grade is only granted in unusual and documented circumstances.  Under no circumstances will an Incomplete be given if the student is failing the course at the time the Incomplete is requested.  A grade of Incomplete will not be given in instances where students were unable to complete the coursework due to personal circumstances. Refer to the link for details: http://www.fit.edu/registrar/records.php

Disability Services:

If you have registered as a student with a documented disability and are entitled to classroom or testing accommodations, please inform the instructor at the beginning of the course of the accommodations you will require in this class so that these can be provided. Refer to the link for details: http://www.fit.edu/asc/disabilities.php

Course Attendance and Absences:

Students are expected to attend all class sessions of the course. In the case of an unavoidable absence, the student must contact the instructor. The student may be subject to appropriate academic penalties for incomplete or unacceptable makeup work or for excessive or unexcused absences.

Course Contact Hours:

The faculty member is expected to hold each of the scheduled classes or make up any missed classes. The Academic Unit Head/ Site Director must approve any exception to this. Failure to meet the full complement of hours may be construed as a breach of contract and endanger the University’s accreditation.

TITLE IX:

Title IX of the Education Amendments of 1972 is a federal civil rights law that prohibits discrimination on the basis of sex in federally funded education programs and activities.  Florida Institute of Technology policy also prohibits discrimination on the basis of sex.

 Florida Tech faculty are committed to helping create a safe learning environment for all students that is free from all forms of discrimination and sexual harassment, including sexual assault, domestic violence, dating violence, and stalking.  If you, or someone you know, have experienced or are experiencing any of these behaviors, know that help and support are available. 

Florida Tech strongly encourages all members of the community to take action, seek support, and report any incident of sexual harassment or gender discrimination to Fanak Baarmand, Title IX Coordinator at 321-674-8885 or fbaarman@fit.edu.

Please note that as your professor, I am required to report any incidents to the Title IX Coordinator.  If you wish to speak to an employee who does not have this reporting responsibility, please contact the Student Counseling Center at 321-674-8050.

General Information:

Computer Requirements: The following requirements are for a basic Distance Learning configuration. The necessary tools are a high-speed internet connection and a modern web browser. Individual courses like streaming video players (e.g., Flash) or other supplementary technologies may have different requirements. Contact your instructor for details if you feel this might be the case.

Internet access: Students must have their Internet Service Provider, which is not supplied by an employer, either in the private or public sector, to take the Distance Learning course. Exceptions may be granted on a case-by-case basis by the instructor before the beginning of the semester. You must have full, unrestricted access to the Internet and email. (Note: Businesses and government agencies often use firewalls to limit their employees' network access. This limited access frequently causes problems for students, which is why having a service provider is required.)

Hardware: Any recently manufactured (4 years or less) computer will be sufficient to access Florida Tech's Learning Management System and perform assigned work. A monitor capable of displaying at least 1024 x 768 pixels is recommended.

Internet browser: Canvas supports most modern browsers, but Firefox, Chrome, and Safari seem to work best. Other applications may work better depending on your browser, so if a feature you are using isn't working like you expect it to, it may help to try the same steps in a different browser. If you need assistance checking your browser's compatibility, contact General Technical Support at 321-674-7284321-674-7284 or techsupport@fit.edu.

Mobile Apps: Canvas has an app for iOS and Android.

E-mail: You must be able to access and be responsible for correspondence sent to your @my.fit.edu email address. By default, Canvas will send some notifications to this address. You can change where and how often you receive these notifications in your Canvas Notification Preferences.

Sending attachments: You must be able to send and receive e-mail and e-mail attachments using Microsoft Word and Excel file formats. If you use one of the recommended browsers, it will automatically set the preferences that your computer needs for sending and receiving attachments. Note that you will also need an application suite that can read and write these file formats (such as MS Office, OpenOffice, or iWork) installed on your computer. Google Drive also supports these document types.

Antivirus Software: Current antivirus software is required for all devices connecting to the Florida Tech network and is recommended for use in general. Free and discounted software is available to students.

Library Resources and Services: Library resources and services are available to distance learners through the Library website. Consult the Distance Learning Library Services & Resources research guide for access and other information.

Appendix A: Scoring Guides

This class combines in-person and Zoom sessions, readings, and threaded discussions. The online Zoom class sessions are posted in the Canvas course room and are stated on the syllabus. Attending and participating in the Zoom conference sessions is highly encouraged. However, attendance and participation are not graded.

The Zoom conference sessions will be recorded and posted in the CANVAS course room so that learners who cannot attend can follow along. In addition, the recordings will be available for review and use as a reference as needed.

Discussion Scoring Guide

Due Date: Weekly

Percentage of Course Grade: 20%

The threaded discussion allows learners to exchange knowledge and invoke dialogue within the class. Participation in the threaded discussion ensures that learners practice crafting the concepts and theories learned, discuss knowledge, and share personal perspectives on the topic being discussed.

The learner’s grade will be based on the professor’s assessment of the quality of the learner’s constructive contributions to the learning experience of all participants.  A high participation grade may be earned by answering and asking text-informed questions about the course material with fellow learners and the professor.  Attending and contributing with short, unsupported comments will not earn participation credit. Make your exchanges orderly, cooperative, informed, and constructive.  Each learner should strive to participate in the discussion, with no one learner dominating any debate.

Grading Rubric

Participation Guidelines

A significant post responding to questions listed in the weekly CANVAS discussions is required.  The initial discussion posts are due no later than 11:59 pm on Wednesdays for the assigned lesson week to enable adequate response time by fellow learners.

All learners must respond to at least two of their peers' posts no later than 11:59 am on TBD for the assigned lesson week.  Replies should continue to add to the discussion; therefore, the Responses should be more than just your concurrence.  Responses are to provide greater insight by trying to identify any additional information that your classmate might have missed, how that information from the week would apply to your jobs, or about experiences you have had with the topic in the past. Seek to include support for your insight in the text, academic or peer-reviewed literature, or legal citations.

These discussions aim to spark thought, alternate ideas, and deeper reflection. The learner’s grade will be based on the professor’s assessment of the quality of the learner’s constructive contributions to the learning experience of all participants.  A high participation grade may be earned by answering and asking text-informed questions about the course material with fellow learners and the professor.  Attending and contributing with short, unsupported comments will not earn participation credit. Make your exchanges orderly, cooperative, informed, and constructive.  Each learner should strive to participate in the discussion, with no one learner dominating any debate.  

Initial posts should be as complete as possible. You need to cite and reference sources used in your post! The following is an example of an in-depth initial post in response to a discussion that asked what the time value of money was and how it could be used in making financial decisions.

            “Based upon the time value of money, a present-day dollar invested or placed in a savings account will increase over time as it earns interest (Time value of money, 1995).

            Individuals making decisions to invest, plan for retirement, or to borrow money may use analysis of the time value of money (Brigham and Houston, 2009). Investors who know the amount of funds available today for investing, the time over which the money will be invested, and the interest accrued during that period can calculate how much their money would be worth at the end or its future value. Therefore, they can compare potential investment alternatives utilizing the analysis of the money's time value to decide which investment decision provides the best return on their investment. In addition, individuals choosing to borrow money can use the time value of money analysis to determine how much the loan will cost them based on the amount borrowed, the loan period, and the interest charged.

            Corporation executives also make investment decisions about property, plant, and equipment (PP&E) by analyzing the time value of money (Brigham and Houston, 2009). Time value analysis enables corporate executives to determine if utilizing retained earnings and cash or using debt to finance PP&E purchases is more advantageous. This type of analysis allows them to calculate the amount of interest they could earn by investing their assets versus the amount of interest they must pay out by accruing debt, enabling them to decide if they can make money faster than they have to pay it out or if they would be better off just investing their capital in the PP&E.

References:

Brigham, E. F., & Houston, J. F. (2009). Fundamentals of financial management (Concise 6th ed.). Mason, OH: Cengage South-Western.

 Time value of money. (1995). In the Dictionary of Economics, Wiley. Retrieved from http://www.credoreference.com.library.capella.edu/entry/wileyecon/time_value_of_money.”

I am also looking for empirically anchored quality replies. You need to cite and reference your sources!  Examples of a supported in-depth reply to a peer would be:

“I disagree with your posting on when not to negotiate. Based on my experience, it is hard to control the Contracting Officer’s Representative (COR).  It is important to ensure everyone is told a COR's roles, responsibilities, and authority. In addition, all parties must understand the difference between a COR and the authority or responsibilities of a Contracting Officer (KO) as specified in DFAR 201.602-2(2)(iv). What has everyone else experienced about CORs overstepping or not assuming their responsibilities?”

“While I agree that entrepreneurial organizations establish strategies, they are not as formal or elaborate as seen in large corporations. In some cases, entrepreneurs can maintain their strategy in their heads. However, entrepreneurs may have to establish at least a simple business plan in writing to obtain financing. Drucker (1985) discussed three entrepreneurial strategies: "firstest with the mostest, " creative imitation, and entrepreneurial judo.

Reference:

Druker, P.F. (1985). Entrepreneurial strategies. California Management Review, 27(2), 9-25.”

“Your post was very informative. I tend to be more of a positivist or quantitative individual. I believe in numbers if I can see the relationships of the mathematical base behind the numbers being presented. When you start putting individual feelings or words into analysis, there is much more for interpretation. Schmidt (2010) evaluated software developed to quantify words' meaning. While this is still being developed and improved with the hope of enabling qualitative research to be quantitatively analyzed, the report identified that the use of and meaning of words are different among genders, nationalities, or other social groups. This highlights the subjectivity of qualitative analysis and the fact that it will continue to bring important insight.

Reference:

Schmidt, M. (2010). Quantification of transcripts from depth interviews, open-ended responses, and focus groups: Challenges, accomplishments, new applications, and perspectives for market research. International Journal of Market Research, 52(4), 483. doi: 10.2501/S1470785309201417.”

“I agree with you about being uncertain about the use of mixed methods, mainly as I tend to be more comfortable with facts and figures. As you stated, Hanson and Grimmer (2007) only found mixed methods 6.5% of the time. However, do you think this is more about the fact that marketing journal standards are such that the mixed marketing research articles are not being done, or the fact that they are too verbose to print?

Reference:

Hanson, D & Grimmer, M. (2007). The mix of qualitative and quantitative research in major marketing journals, 1993-2002. European Journal of Marketing, 41(1/2), 58-70. Retrieved from ABI/INFORM Global.”

**All times are based upon the Eastern time zone. Late initial posts and/or late responses will be penalized.

 Project Scoring Guide - Course Paper

Overview

This course will focus on introducing Cost Principles, Effectiveness, and Control. It will present material to solve questions about establishing, evaluating, and negotiating a fair and reasonable contract price. The intent is to help you understand Government practices and concepts associated with contract pricing and costs. It provides insight into how to perform contracting price/cost negotiation and how to control contract costs. The individual project will allow you to demonstrate your knowledge of contract cost principles.

To complete this project, you will be expected to complete the following components:

 Project Requirements

Project Requirements

To complete the project, you will be expected to meet the following requirements:

• Select a topic from one of the following
  • Research and select a Federal Contract case or protest (ASBCA, Government Accountability Office, or the U.S. Court of Federal Claims) related to a specific subject matter from the textbook. Provide the case with its internet link. Explain what happened and your opinion of the apparent mistakes and the case outcomes. Reference the areas in your textbook, the FAR, or applicable FAR supplements that provide insight into the situation.
  • A topic of your choice, when presented to and approved by the instructor.

• Topic Identification: This will consist of 1-2 pages. It will include the topic, reason for selection, and analysis of how it corresponds to the course objectives. In addition to the 1-2 pages, it will include a proposed outline and reference list of at least three sources (biographies or articles) that provide sufficient detail to identify specific leadership traits and skills.
• Final Paper: The paper will be a minimum of 6 double-spaced pages, approximately 1200 words, plus a cover page, table of contents, and references. It will incorporate at least five (5) scholarly references. An abstract is not required for the course paper.
• Font and font size: Use 12-point Times New Roman font.
• Margins: You will use the standard of 1” margins.
• Written communication: Written communication must be free of grammatical and spelling errors. Points will be deducted for poor grammar and spelling.
• APA formatting: Citations and references will follow APA (6^th edition) formatting. The source for any quotes or factual details must be explicitly cited per the APA manual. 

Grading Rubric

Examinations

All examinations will be posted on the Canvas website under course materials.  The instructor will let you know whether the examinations are take-home or in the classroom. Regardless, learners must provide complete, accurate answers supported by the course room and text material. Short, unsupported comments will not be accepted as an answer. Some, if not all, exams may require a proctor. If a proctor is required, the instructor will provide details on how a proctor is to be identified. All quizzes and examinations must be individual work without discussion among classmates or others.