Dcma Twin Cities Pricing And Negotiations

1. The Price Negotiation Memorandum (PNM) shall meet the criteria stated in FAR 15.406-3

True

False

The Price Negotiation Memorandum (PNM) is a document that outlines the details of a negotiation between a government agency and a contractor regarding the price of a contract. According to FAR 15.406-3, the PNM must meet certain criteria. Therefore, the statement that the PNM shall meet the criteria stated in FAR 15.406-3 is true.

Explanation

The Price Negotiation Memorandum (PNM) is a document that outlines the details of a negotiation between a government agency and a contractor regarding the price of a contract. According to FAR 15.406-3, the PNM must meet certain criteria. Therefore, the statement that the PNM shall meet the criteria stated in FAR 15.406-3 is true.

2. Only some of the technical & cost and pricing analysis reports and other pricing documents containing Government or contractor proprietary data shall be marked "For Official Use Only".

True

False

All should be marked "For Official Use Only".

Explanation

All should be marked "For Official Use Only".

3. The Price Negotiation Memorandum (PNM) shall be approved prior to execution of the contracting action.

True

False

The Price Negotiation Memorandum (PNM) is a document that outlines the details of the negotiation process for a contract. It includes information such as the proposed price, the negotiation objectives, and any concessions made by both parties. By stating that the PNM should be approved prior to execution of the contracting action, it ensures that all necessary approvals and documentation are in place before finalizing the contract. This helps to ensure transparency and accountability in the negotiation process. Therefore, the statement that the PNM should be approved prior to execution of the contracting action is true.

Explanation

The Price Negotiation Memorandum (PNM) is a document that outlines the details of the negotiation process for a contract. It includes information such as the proposed price, the negotiation objectives, and any concessions made by both parties. By stating that the PNM should be approved prior to execution of the contracting action, it ensures that all necessary approvals and documentation are in place before finalizing the contract. This helps to ensure transparency and accountability in the negotiation process. Therefore, the statement that the PNM should be approved prior to execution of the contracting action is true.

4. Negotiations exceeding $1 million are subject BOR at the Directorate.

True

False

Negotiations exceeding $1 million are not subject to BOR at the Directorate.

Explanation

Negotiations exceeding $1 million are not subject to BOR at the Directorate.

5. The Contracts Director shall get approvals for the PNOM before negotiations.

True

False

The Contracts Director is not responsible for getting approvals for the PNOM before negotiations.

Explanation

The Contracts Director is not responsible for getting approvals for the PNOM before negotiations.

6. Price analysis is required per FAR for all negotiated actions below $650,000.

True

False

Price analysis is required per FAR (Federal Acquisition Regulation) for all negotiated actions below $650,000. This means that whenever a negotiation is conducted for a contract or purchase below this threshold, it is mandatory to perform a price analysis. Price analysis involves evaluating and comparing the prices proposed by different suppliers or contractors to ensure that they are fair and reasonable. This helps to prevent overpricing or fraud and ensures that the government gets the best value for its money. Therefore, the statement "Price analysis is required per FAR for all negotiated actions below $650,000" is true.

Explanation

Price analysis is required per FAR (Federal Acquisition Regulation) for all negotiated actions below $650,000. This means that whenever a negotiation is conducted for a contract or purchase below this threshold, it is mandatory to perform a price analysis. Price analysis involves evaluating and comparing the prices proposed by different suppliers or contractors to ensure that they are fair and reasonable. This helps to prevent overpricing or fraud and ensures that the government gets the best value for its money. Therefore, the statement "Price analysis is required per FAR for all negotiated actions below $650,000" is true.