[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR15.406-1]



[Page 281]

 

            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.