BPPM Negotiation Memorandum Sample Format
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.