Acquisition Cost/Price Estimating
ARMY AVIATION RESEARCH AND DEVELOPMENT COMMAND ST LOUIS MO
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Contract pricing is a term which covers three sequential areas. First is the analysis of each firms price by using the techniques of cost andor price analysis. Second is the establishment of a prenegotiation goal total cost plus profit or fee or total price to be used during the actual negotiations with each company. Third is the actual negotiation and agreement on a contractual arrangement price and contract type which comes as close as possible to the prenegotiation goal, considering both the additional information gained during negotiations and the ability and willingness of both parties to come to an agreement.
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