PRICE NEGOTIATION MEMORANDUM

**\[Stand-Alone Document---NFS 1815.406-3(a)(iii)\]**

**Subject: Price Negotiation Memorandum (PNM)** **Date**:      

**Contractor**:      

**Contract No:**      , **Modification No.**      

**Written Authorization to Use a "Stand-Alone" PNM approved by**      
**on**      

**Purpose of Negotiations:**      

**Type of Contract**:      

**Place of Performance**:      

**Period of Performance (This Action):**      

**Date of Negotiations**: From:       To:      

**Government Participants (name, position, and organization)**:

     

**Contractor Participants (name, position, and organization)**:

     

**Place of Negotiations**:      

**Negotiation Results** (Attach detailed cost element breakout):

+-----------+------------------+------------------+------------------+
|           | **Contractor**   | **Government**   | **Negotiated**   |
|           |                  |                  |                  |
|           | **Proposal**     | **Objective\***  | **Amount\***     |
+-----------+------------------+------------------+------------------+
| ## T      | \$               | \$               | \$               |
| otal Cost |                  |                  |                  |
+-----------+------------------+------------------+------------------+
|           |                  |                  |                  |
+-----------+------------------+------------------+------------------+
| ##        | \$               | \$               | \$               |
|  Fee(s)/P |                  |                  |                  |
| rofit\*\* |                  |                  |                  |
+-----------+------------------+------------------+------------------+
|           |                  |                  |                  |
+-----------+------------------+------------------+------------------+
| ## To     | \$               | \$               | \$               |
| tal Price |                  |                  |                  |
+-----------+------------------+------------------+------------------+

\* Attach parallel tabular summary, by element of cost and profit/fee,
and detailed reference notes that give a narrative explanation of the
Government objective and the negotiated agreement (Attachment A). In
addition, significant differences between the auditor's
report/recommendations, Government objective, and negotiated agreement
shall be highlighted and explained in the detailed reference notes.

\*\* Rationale for the Government's profit/fee objective and, if
appropriate, a completed NASA Form 634, Structured Approach---Profit/Fee
Objective, is attached.

**Description of Acquisition**:

     

**Evaluation Chronology:**

**a. Contractor's Proposal(s)** (proposal number, date(s), and
amount(s)):

>      

**b. Technical Evaluation Report** (by whom and date approved):

>      

**c. Field Pricing Report or Auditor Rate Verification** (by whom and
dates):

>      

**d. Cost/Price Evaluation Report** (by whom and date approved) (if
prepared):

>      

+------------+-----------------------------------------+---------------+
| **[YES]{.  | # ITEMS                                 | # NOTES       |
| underline} |                                         |               |
| [NO]{.     |                                         |               |
| underline} |                                         |               |
| [N/A]{.un  |                                         |               |
| derline}** |                                         |               |
+============+=========================================+===============+
| 1\.        | Price/cost considered fair and          |               |
|            | reasonable based on (check one):        |               |
|            |                                         |               |
|            | \(a\) cost analysis , (b) price         |               |
|            | analysis , (c) established              |               |
|            |                                         |               |
|            | catalog or market price , or (d) law or |               |
|            | regulation.                             |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 2\.        | Fee/profit within the statutory         |               |
|            | limitations of FAR 15.404(c)(4).        |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 3\.        | Profit/fee negotiated is within the     |               |
|            | range of the maximum fee supported by   |               |
|            | the NF 634. If not, attach supporting   |               |
|            | rationale justifying the negotiated     |               |
|            | fee.                                    |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 4\.        | Award consistent with technical         |               |
|            | recommendations. If not, explain.       |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 5\.        | Certified Cost or Pricing Data required |               |
|            | and obtained. If yes, specify date of   |               |
|            | the Contractor's signed certificate.    |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 6\.        | Certified Cost or Pricing Data required |               |
|            | and relied on (check one): Fully or Not |               |
|            | Fully---explain how recognized as       |               |
|            | inaccurate, incomplete, or non-current  |               |
|            | (FAR 15.406-3(a)(6)(i)-(6)(iii)).       |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 7\.        | Exception for Certified Cost or Pricing |               |
|            | Data exists.                            |               |
|            |                                         |               |
|            | Under threshold (\$550K) or Other       |               |
|            | (Specify exception) (FAR 15.403-1(b) or |               |
|            | 15.403-2).                              |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 8\.        | Same or similar items have been         |               |
|            | previously procured. If yes, provide    |               |
|            | history.                                |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 9\.        | The Government plans to provide         |               |
|            | facilities or property and the required |               |
|            | documentation has been prepared (NFS    |               |
|            | 1845.302-1(a)(iv) and 1845.302-71).     |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 10\.       | Special features and requirements have  |               |
|            | been incorporated in the proposed       |               |
|            | contract (e.g., letter contract or      |               |
|            | precontract costs; preaward survey      |               |
|            | results; options; deviations or         |               |
|            | waivers; special clauses; or risk       |               |
|            | management issues such as safety,       |               |
|            | security (including information         |               |
|            | technology security), export control,   |               |
|            | environmental, etc. (NFS                |               |
|            | 1815.406-170(c)). If yes, explain.      |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 11\.       | Terms and conditions are as stated in   |               |
|            | the solicitation. If not, explain.      |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 12\.       | Advance agreements made? If yes,        |               |
|            | specify clause number and title.        |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 13\.       | All required clauses included in the    |               |
|            | contractual document. If not, explain.  |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 14\.       | Justification for Other than Full and   |               |
|            | Open Competition approved. By who and   |               |
|            | when? Specify exception. FAR/NFS 6.303  |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 15\.       | Synopsis of this acquisition posted to  |               |
|            | NAIS. Specify date. FAR/NFS 5.202       |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 16\.       | Checked the Consolidated Contracting    |               |
|            | Initiative (CCI) website. Specify date. |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 17\.       | Contractor's Cost Accounting System     |               |
|            | determined to be                        |               |
|            |                                         |               |
|            | adequate. Determined by who and when?   |               |
|            | If not, explain                         |               |
|            |                                         |               |
|            | (Note: DCMA, ONRR, or DHHS determine    |               |
|            | adequacy or approval of business        |               |
|            | systems)                                |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 18\.       | Contractor's Estimating System          |               |
|            | determined to be adequate. Determined   |               |
|            | by who and when? If not, explain.       |               |
|            |                                         |               |
|            | (Note: DCMA, ONRR, or DHHS determine    |               |
|            | adequacy or approval of business        |               |
|            | systems)                                |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 19\.       | Contractor's Compensation System        |               |
|            | determined to be adequate. Determined   |               |
|            | by who and when? If not, explain.       |               |
|            |                                         |               |
|            | (Note: DCMA, ONRR, or DHHS determine    |               |
|            | adequacy or approval of business        |               |
|            | systems)                                |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 20\.       | Contractor's Purchasing System          |               |
|            | determined to be adequate. Determined   |               |
|            | by who and when? If not, explain.       |               |
|            |                                         |               |
|            | (Note: DCMA, ONRR, or DHHS determine    |               |
|            | adequacy or approval of business        |               |
|            | systems)                                |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 21\.       | Contractor's Cost Accounting Standards  |               |
|            | Disclosure Statement is considered      |               |
|            | adequate. Determined by who and when?   |               |
|            | If not, explain.                        |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 22\.       | Facilities Capital Cost of Money (FCCM) |               |
|            | has been proposed and offset consistent |               |
|            | with NFS 1815.404-471-5, or the FCCM    |               |
|            | waiver clause is included in the        |               |
|            | contract.                               |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 23\.       | Contractor is in compliance with Equal  |               |
|            | Employment Opportunity requirements     |               |
|            | (new work actions \>\$10M). Determined  |               |
|            | by who and when? FAR 22.8               |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 24\.       | Subcontracting involved. If yes,        |               |
|            | indicate if any are designated "special |               |
|            | surveillance." FAR 44.201-1(a) and NFS  |               |
|            | 1844.201-1(a).                          |               |
|            |                                         |               |
|            | None designated.                        |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 25\.       | Small Business Subcontracting Plan or   |               |
|            | revision required and recommended goals |               |
|            | achieved. If not, explain. FAR/NFS      |               |
|            | 19.702(a)(1)                            |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 26\.       | Funds are available for this effort. If |               |
|            | incrementally funded, specify funding   |               |
|            | amount and allotment date.              |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 27\.       | Contractor is debarred, suspended, or   |               |
|            | ineligible. Determined by who and when? |               |
|            | FAR/NFS 9.4                             |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 28\.       | Contractor is responsible. FAR Part 9   |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 29\.       | Direction given by Congress, other      |               |
|            | agencies, and/or higher-level officials |               |
|            | had a significant effect on this        |               |
|            | action. If yes, explain. FAR            |               |
|            | 15.406-3(a)(9)                          |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 30\.       | Electronic Information Technology (EIT) |               |
|            | Accessibility Certification in the      |               |
|            | file. PIC 01-13                         |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 31\.       | Annual VETS-100 Report submitted (for   |               |
|            | actions \>\$25K, except commercial,     |               |
|            | state/local, or foreign contracts). FAR |               |
|            | 22.1302                                 |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 32\.       | NASA Engineer's SUNS documentation in   |               |
|            | the file (\>\$5M or involves analysis   |               |
|            | or equipment for space flight systems). |               |
|            |                                         |               |
|            | PIC 04-04.                              |               |
+------------+-----------------------------------------+---------------+
|            |                                         |               |
+------------+-----------------------------------------+---------------+
| 33\.       | Contractor registered in the DoD        |               |
|            | Central Contractor Registration (CCR)   |               |
|            | database and CAGE Code obtained. PIC    |               |
|            | 00-18                                   |               |
+------------+-----------------------------------------+---------------+

+------------------------------------------------------+---------------+
| **This Price Negotiation Memorandum documents the    |               |
| technical, business, contractual, pricing (including |               |
| price reasonableness), and other elements of the     |               |
| contract action negotiated.**                        |               |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+
| **CONTRACT SPECIALIST NAME AND SIGNATURE**           | **DATE**      |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+
| **CONTRACTING OFFICER NAME AND APPROVAL SIGNATURE    | **DATE**      |
| (Actions \$0 to \$100K)**                            |               |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+
| **PROCUREMENT MANAGER NAME AND APPROVAL SIGNATURE    | **DATE**      |
| (Actions \>\$100K to \$5M)**                         |               |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+
| ###                                                  |               |
+------------------------------------------------------+---------------+
| **PROCUREMENT OPERATIONS DIVISION NAME AND APPROVAL  | ### DATE      |
| SIGNATURE (Actions \>\$5M to \$50M)**                |               |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+

**Attachment A**

**\[Contract Specialist Instructions -- Insert Attachment A -- Detailed
Cost Element Breakout chart & Reference Notes narrative here. Example
format is as follows. You can also import an Excel Spreadsheet.\]**

<table>
<colgroup>
<col style="width: 14%" />
<col style="width: 4%" />
<col style="width: 19%" />
<col style="width: 2%" />
<col style="width: 15%" />
<col style="width: 2%" />
<col style="width: 15%" />
<col style="width: 2%" />
<col style="width: 11%" />
<col style="width: 2%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td> Elements of Cost</td>
<td><p> </p>
<p> </p></td>
<td><p>Contractor's</p>
<p>Proposal</p></td>
<td><p> </p>
<p> </p></td>
<td><p>Government's</p>
<p>Objective</p></td>
<td><p> </p>
<p> </p></td>
<td><p>Negotiated</p>
<p>Agreement</p></td>
<td><p> </p>
<p> </p></td>
<td><p> </p>
<p>Differences</p></td>
<td><p> </p>
<p> </p></td>
<td><p>Reference</p>
<p>Notes</p></td>
</tr>
</tbody>
</table>

Attachment A

Reference Notes