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e-CFR data is current as of March 5, 2021

Title 48Chapter 1Subchapter CPart 15Subpart 15.4 → §15.406-1


Title 48: Federal Acquisition Regulations System
PART 15—CONTRACTING BY NEGOTIATION
Subpart 15.4—Contract Pricing


15.406-1   Prenegotiation objectives.

(a) The prenegotiation objectives establish the Government's initial negotiation position. They assist in the contracting officer's determination of fair and reasonable price. They should be based on the results of the contracting officer's analysis of the offeror's proposal, taking into consideration all pertinent information including field pricing assistance, audit reports and technical analysis, fact-finding results, independent Government cost estimates and price histories.

(b) The contracting officer shall establish prenegotiation objectives before the negotiation of any pricing action. The scope and depth of the analysis supporting the objectives should be directly related to the dollar value, importance, and complexity of the pricing action. When cost analysis is required, the contracting officer shall document the pertinent issues to be negotiated, the cost objectives, and a profit or fee objective.

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