48 C.F.R. § 15.406-1

15.406-1 Prenegotiation objectives.

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(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.

Notes of Decisions

Cited in 2 cases, 1997–2014 · leading case: Ims, P.C. v. Aida Alvarez, Administrator, United States Small Business Administration

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Ims, P.C. v. Aida Alvarez, Administrator, United States Small Business Administration (1997) cadc “402 (1996); 48 C.F.R. § 15.406-1 (1996); 48 C.F.R. § 15.”

United States ex rel. Thomas v. Siemens AG (2014) paed “48 C.F.R. § 15.406-1 . To establish these objectives, the contracting officer analyzes the vendor’s DPI disclosures, clarifications and supplemental submissions, and any OIG audit report.”

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