Methodology for Evaluating and Negotiating Independent Research and Development and Bid and Proposal Costs
ARMY PROCUREMENT RESEARCH OFFICE FORT LEE VA
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There is only limited guidance on how to evaluate independent research and development IR and D and bid and proposal B and P costs for those contractors that require the negotiation of advance agreements. With only limited guidelines for determining the equitability or creditability of such costs, it is exceedingly difficult to evaluate and negotiate appropriate costs. The development of simple, equitable and creditable methods or techniques in the evaluation and negotiation of advance agreements for IR and D and B and P is the objective of this report. Current methods and techniques of evaluating and negotiating IR and D and B and P costs were evaluated. Personnel of the three Military Services and the Defense Supply Agency DSA involved with IR and D and B and P negotiations were interviewed. Also, previous research studies and GAO reports on the subject were reviewed.
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