[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR15.406-1]

[Page 270]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 15_CONTRACTING BY NEGOTIATION--Table of Contents
 
                      Subpart 15.4_Contract Pricing
 
Sec.  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.