Negotiation Memorandum Sample Format

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Where the price was established based on an evaluation of cost elements and fee in the offeror=s proposal, the negotiation memorandum should clearly set forth the various amounts as they were proposed, evaluated, and negotiated. For example:

Cost Elements

Proposed

Independent Cost Est.

Pre-Neg. Plan

Negotiated

Direct Labor:

Engr.

$

$

$

$

Mfg.

$

$

$

$

Overhead:

Engr.

$

$

$

$

Mfg.

$

$

$

$

Materials

$

$

$

$

G&A

_________

____________

___________

__________

Total Costs

$

$

$

$

Fee

_________

____________

___________

__________

Total Price

$

$

$

$

Note: your narrative should discuss each of the cost elements and the fee/profit, describing how the final negotiated amount for each element and profit was determined. You should reference the Pre-Negotiation Plan objectives (if one was prepared), or the Independent Cost Estimate, in your narrative.

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