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Getting the Contract

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Getting the Contract
Cecil T. Smith
Dr. Calvin Lathan III
BUS 319-Principles of Federal Acquisition and Contract Management
February 28, 2013

Analyze the process of pre-negotiation to determine why it is so important to the company.

Holding pre-negotiation sessions provides a forum for both parties to communicate their objectives. These can be held anywhere between one week to a month before negotiations, depending on the complexity of the negotiations and the amount of needed information to be gathered (Ghamami, 2011). The process of pre- negotiations is important to company for many of the same objectives they are to the government. Those objectives are spelled out for the government in FAR 15.406-1 Pre-negotiation objectives. (a) The pre-negotiation 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 pre-negotiation 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. According to the author the pre-negotiation process is a three-dimensional concept; administrative, strategic and tactical (Hearn, 2011). This three dimensional concept involves gathering of the facts, which are done during

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