Analysis of commercial pricing factors : a framework for commercial item pricing
Russell, Joseph F.
Lamm, David V.
Barnard, James M.
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Recent procurement reform initiatives within the Federal Government have served to significantly reduce the requirement for offerors to provide the Government with cost or pricing data in advance of contract negotiations. The goal of these initiatives is to streamline the procurement process and achieve a procurement environment that more closely resembles the practices of the commercial sector. In order for the Government Contracting Officer to effectively analyze an offer as fair and reasonable and obtain a negotiating position, the Contracting Officer must recognize and understand a myriad of elements that contribute to a commercial firm's pricing objectives. The purpose of this research is to examine the elements that influence a contractor's pricing as well as the factors applied to their purchasing decisions. This paper will present data that can be analyzed without the benefit of cost or pricing data. The thesis provides a framework for Government Contracting Officers to recognize and analyze this data in preparing for contract negotiations.
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