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Spotlight PEPPOL BIS Billing 3.0 The EU e-invoicing mandate is here — France Sept 2026, Belgium Jan 2026, Germany 2025.

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X12 805 — Contract Pricing Proposal

The 805 transmits a contract pricing proposal — labor, materials, ODC, fee, profit — from a contractor to a federal contracting officer.

Purpose

The 805 documents a structured cost proposal per FAR Table 15-2: direct labor hours and rates, materials, subcontracts, Other Direct Costs (ODC), indirect (G&A, overhead, fringe), fee/profit. It is the centerpiece of certified cost or pricing data submitted for contracts above the TINA threshold.

It feeds DCAA / DCMA price analysis. Acknowledged by 997. Followed by a negotiation cycle and an 838 (Trading Partner Profile) once the contract is awarded.

Envelope structure

The 805 travels within the three X12 envelope levels (ISA/IEA, GS/GE with functional group CP, and ST/SE). Didactic example in release 004010:

x12 example-805.x12 
ISA*00*          *00*          *ZZ*CONTRACTOR    *ZZ*CONTRACTOFFICR*260515*1000*U*00401*000000805*0*P*>~
GS*CP*CONTRACTOR*CONTRACTOFFICR*20260515*1000*1*X*004010~
ST*805*0001~
BGN*00*PROP-2026-W912DY*20260515~
N1*SE*ACME CONSTRUCTION*24*EIN-ACME~
N1*BY*US ARMY CORPS OF ENGINEERS*24*EIN-USACE~
REF*ZZ*RFP-W912DY26R0099~
DTM*002*20260801~
LX*1~
NTE*ZZ*DIRECT-LABOR~
AMT*ZZ*1850000.00~
LX*2~
NTE*ZZ*MATERIALS~
AMT*ZZ*1200000.00~
LX*3~
NTE*ZZ*FEE-PROFIT~
AMT*ZZ*400000.00~
SE*13*0001~
GE*1*1~
IEA*1*000000805~

Common segments

  • Header — ST, BGN.
  • Contractor / Agency — N1*SE, N1*BY.
  • RFP — REF*ZZ (solicitation number), DTM*002 (expected start).
  • Cost elements — LX loop: NTE (category — DIRECT-LABOR, MATERIALS, ODC, FEE), AMT*ZZ (amount).
  • Summary — SE.

Common pitfalls

  • TINA threshold: above the Truth in Negotiations Act threshold ($2M currently), certified cost or pricing data is required — a non-certified 805 above the threshold exposes to a defective pricing claim.
  • Indirect rate: G&A and overhead must be supported by approved forward pricing rates; an invented rate triggers a DCAA audit.
  • Fee structure: fixed-fee, cost-plus-fixed-fee, cost-plus-incentive-fee, or cost-plus-award-fee have different presentation conventions — do not mix.

Documentation

The code 805 and the name Contract Pricing Proposal are public and listed on x12.org/products/transaction-sets. The complete structure of loops, qualifiers and code lists is distributed by DISA via the proprietary Implementation Guides (TR3). ediverse.io covers only public concepts, the envelope and didactic examples.