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X12 transaction guide · Catalogs and pricing

EDI 805 Contract Pricing Proposal

The X12 document used to transmit cost and pricing data for a contract action, with pricing support detail or references to it.

Sent by
Contractor
Received by
Government agency or prime contractor
Standard
ANSI ASC X12

What is an EDI 805?

The EDI 805 Contract Pricing Proposal is the ANSI X12 transaction set that transmits cost and pricing data for a given contract action and provides pricing support detail, or references to where that data can be found in the proposal.

For many government contracts, contractors must support proposed prices with cost breakdowns: labor hours and rates, materials, subcontracts, overhead and profit. Structured proposals let agencies analyze and compare them, and audit the supporting rates, which may be sent with the 251.

How the EDI 805 worksDiagram of the EDI 805 Contract Pricing Proposal. Contractor sends it to government agency or prime contractor. It usually follows 251. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BCP (Beginning Segment for Contract Pricing Proposal) and SPI (Specification Identifier). 7 optional loops are listed by their first segment.How the EDI 805 worksContract Pricing Proposal: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWS251Pricing SupportEDI 805SENDERContractorRECEIVERGovernment agency orprime contractor997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code CPGS … GETransaction set 805ST … SEHEADINGBCPBeginning Segment forContract Pricing ProposalSPISpecification Identifier+ 4 optional loops, starting with:N1CBSCB1REFDETAIL+ 2 optional loops, starting with:HLPDSUMMARY+ 1 optional loop, starting with:LXBlue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 805. Your trading partner's implementation guide adds its own requirements.
How the EDI 805 worksDiagram of the EDI 805 Contract Pricing Proposal. Contractor sends it to government agency or prime contractor. It usually follows 251. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BCP (Beginning Segment for Contract Pricing Proposal) and SPI (Specification Identifier). 7 optional loops are listed by their first segment.How the EDI 805 worksContract Pricing Proposal: who sends it, whereit fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWS251Pricing SupportEDI 805SENDERContractorRECEIVERGovernmentagency or primecontractor997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code CP (GS … GE)Transaction set 805 (ST … SE)HEADINGBCPBeginning Segment forContract Pricing ProposalSPISpecification Identifier+ 4 optional loops, starting with:N1CBSCB1REFDETAIL+ 2 optional loops, starting with:HLPDSUMMARY+ 1 optional loop, starting with:LXBlue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 805. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 805, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 805 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

Expand diagram Download SVG

When it is used

  • Submitting cost proposals for new contracts
  • Pricing contract modifications
  • Providing cost breakdowns for audit

Where it fits in the document flow

Usually follows 251 Pricing Support
This document 805 Contract Pricing Proposal
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 805 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • BCP
  • SPI
  • N1
  • CBS
  • CB1
  • REF
  • HL
  • PD
  • LX
  • SE

Practical example

The 805 in practice

A contractor prices a modification to a maintenance contract. It submits an 805 with the labor hours by category, the approved rates, material costs, subcontract quotes, indirect costs and profit. The agency's analysts review the proposal and negotiate the final price.

Implementation

Implementation considerations for the 805

  • Use the rates agreed or audited for the period.
  • Break costs down as the agency requires.
  • Reference supporting documents clearly in the proposal.
  • Follow procurement regulations on cost and pricing data.

How ECOM helps

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Solution

Financial Document Automation

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Industry

Industrial Manufacturing

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Solution

Procure-to-Pay Automation

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More general questions about EDI are answered in the EDI FAQ.

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