Government Contracting

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 Price Competition Memorandums reasonably. The role of this guide is to reconcile the two documents by addressing the contents of both separately. However, different cases may call for different approaches and thus prompting the user not to use the same format. Thus, each procurement process has its own specifications although there is a clear format for both documents.

Introduction

Receiving and issuing of government contracts is one of the most complex issues. Government contracts have been issued to different companies through different strategies. The issuing of government contracts is one of the things that most corporations will fight over. Evidently, there have been endless fights between corporations over the receiving of the contracts. This being the case, the government has been left with endless challenges how to tackle the matter. Every new government has a new contract issuing policy and thus every four years or five years depending on one’s nation, there are endless corporations that attempt to please or impress the new government, with the hope of being rewarded with a contract.

Government deliveries are some of the most profitable venture for a majority of corporation within the industry. The...