Procurement II: Risk Assessment and Basic Cost or Price Analysis

Note: Please do not register for Procurement II without having first completed Procurement I.

The second of a four-part series *, this four-day course is designed to strengthen the procurement practices of transit authorities by improving the ability to perform cost and price analysis. This basic training helps build the sound financial management practices that are expected of organizations and agencies receiving direct grant support from the FTA. This course uses “best practices” and several hands-on exercises to augment explanations and how to perform cost and price analysis and price and cost certification. The effect risk has on different types of contracts and specifications is covered in great detail. Independent Cost Estimating, direct and indirect costing along with profit/fee analysis are also covered in detail. The Best Practices Procurement Manual and Circular 4220.1F are referenced throughout the course. This course is conducted utilizing exercises, case studies, and other interactive training activities. A small calculator would be helpful for the class exercises.

* It is highly recommended that the four procurement courses be taken in the following order:
Procurement I: Orientation to Transit Procurement
Procurement II: Risk Assessment and Basic Cost and Price Analysis
Procurement III: RFP’s and Competitive Contract Negotiations
Procurement IV: Contract Administration


Topics include, but are not limited to:

  • Price or Cost Analysis
  • Effect of Price or Cost Analysis on Types of Contracts
  • Contract Modifications
  • Determination of Fair and Reasonable Price
  • Methods of Conducting Cost Comparison
  • Role Risk Plays in Pricing
  • Effect of Contract Type on Allocation of Risk
  • Effect of Specification Type on Risk Allocation
  • FTA’s Role in the Procurement Process


This course is for those currently engaged in procurement for federally funded transit agencies, contract administrators, project managers, procurement and contracting personnel wishing to improve their skills, transit suppliers, and FTA regional staff who review third-party contracting. Transit suppliers are encouraged to attend in order to understand the agency procurement function more thoroughly.

Length:  4 days

Salendria Mabrey