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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:
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Cost Elements: |
Proposed |
Independent Cost Est. |
Pre-Neg. Plan |
Negotiated |
|
Direct Labor:
Engr.
Mfg. |
$ |
$ |
$ |
$ |
|
Overhead:
Engr.
Mfg. |
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|
|
|
Materials |
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|
|
|
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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