SpendLogic works with government primes and subs to unlock organizational savings and fix procurement compliance issues. Our software solves the top three CPSR findings: Price Analysis, Commercial Item Determinations, and Source Justifications. In this video, we will show you how to use SpendLogic to create a price analysis of a long list of parts based on price history that will pass audit every time.


Hi, I’m Patrick Mathern, founder of SpendLogic. We work with government primes and subs to unlock organizational savings and fixed procurement compliance issues. In this short tutorial, I’m going to show you how to use SpendLogic to create a FAR-compliant price analysis report of a long list of parts that relies on prior price history. Let’s get started.

♪ [music] ♪ To start a new price analysis, from any screen in SpendLogic, click the New Report button at the top of the screen and click Price Analysis. You’ll see you have two tabs on this screen. You won’t be able to advance to Parts until the Procurement tab has been completed. Work through each of the elements of this screen, making sure to answer each question, and when you’ve reached the bottom, choose Use price history to analyze a list of parts.

Then click Next. Now you’re on the Multi-Part tab. As with any historical price analysis, you must first establish validity of the pricing that you’re using as a basis for your analysis. That’s the point of this screen. The first question ensures that your basis pricing was set as the result of either cost analysis or competition.

Based on your company’s policies and procedures, your question may be worded slightly differently from what you see here. Notice that choosing Other results in a warning and you’re unable to continue. If you can’t choose the first item, this is not the right method for you to be using. An auditor will need some sort of proof showing that pricing is the result of prior analysis or competition, so upload a copy here.

Continue by answering the question regarding terms and conditions. The last item on this screen relates to differences in quantity. For instance, if the prior purchase was for 100 units, but the current purchase is for 1000, SpendLogic needs to know how to modify the price to account for this difference. Unlike a standard historical analysis, you’re only given two options here. The majority of the time, you’ll be choosing to apply the standard DoD curve of 95%.

When you’re ready, click Next. You’ve now arrived at the Parts tab. This is our Multi-Part Grid View. It works much like Microsoft Excel. In fact, you can copy and paste from Excel tables to speed things up, or click and drag cells right inside this table. Work from left to right and fill in each of the cells.

When you start typing in a part number, you’ll see that it works very similar to the other SpendLogic screens. The same goes for each of the cells. ♪ [music] ♪ Note that the green cells refer to the current proposal while the gray cells refer to the prior price paid. At the right, you’ll see that the proposed price per unit, proposed total dollars, analysis price per unit, and total analysis dollars are shown by line item.

If you want to see the total across all lines, look to the upper left corner of the screen. Now, let me show you how using copy and paste from Excel can save you time. If your MRP system has the ability to output to Excel and you’re more comfortable using that format, create a spreadsheet with the same columns that you see on the SpendLogic screen. Then simply transfer the data from your MRP system, leaving description and escalation blank.

When you’re ready, simply highlight the data in Excel, copy, and then paste it in SpendLogic using Ctrl + V. ♪ [music] ♪ You’ll notice that for two parts, the part number was already in the system and therefore doesn’t show any errors.

However, there’s one part that needs to be added. Simply click on the part number and click Add New in the upper right corner. Once you have a description, SpendLogic will add it to your company’s parts database. Next, notice that the Escalation Index is red. There are two ways to fix this. You can either go one by one and change each line, or you can simply grab the bottom right corner and copy the index down.

This is particularly useful for long lists of related parts. If you have line items that you can’t see the contents of, you can resize the columns by hovering over the column separator. When the cursor changes, simply click and drag. Hovering over a row, when the cursor changes from an arrow to the move cursor, you can click and drag the row to reorder it in the table. When your list of parts is complete and you have no more red cells, click Next.

This is our Risk Check screen. As with all methods, if you see a lot of red flags on this screen, it means your report is likely to be scrutinized. Try to minimize the number of risk checks that you see. For those that can’t be removed, make sure your explanations are complete. Clicking Next takes us to the final summary. You can either finalize your report or download a copy.

Remember, until your report is finalized, it’s subject to changes in the BLS. BLS indices are updated monthly, so your final report values may change. It’s a best practice to go ahead and finalize your report as soon as you can. This concludes our video. Thanks for watching.

If you have any questions on this or any other feature in SpendLogic, visit spendlogic.com/help or email us at [email protected].

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