Intermediate Pricing and Contract Integration

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Intermediate Pricing and Contract Integration TABLE OF CONTENTS CHAPTER PAGE Executive Summary ………...…………………………………………………………………………………… 3 Introduction ……………………………………………………………………………..4 PRICE NEGOTIATION MEMORANDUMS (PNMs) Issuing of government Contracts …….………....………………………………………5 Bidding and negotiation ………………….…….…………………………… ………6 Negotiation Summary..................................................................................................7 Introductory Summary……………………………………………………………….8 A tabular summary of price………………………………………………………….10 Government Contracting……………………………………………………………10 Vertical integration as a contracting technique……………………………………..11 Private-public partnerships…………………………………………………………..12 Executive summary This guide acts as a replacement to the earlier Air Force Material Command FAR Supplement with the intention of making it better than its predecessor. The scope of this document is to provide information on the necessities of developing prices and then devising of mechanisms to determine the fairness of the prices. It is with this precedent that the document goes back all the way from the historical behavior of factors that affect the prices up to the final price. The Price Negotiation Memorandum is the legal document that is used officially to determine any price, which cannot be set based on competition. In any contract, this document becomes the legal, binding document for all parties. These properties of the PNM also apply to the

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