For a change or modification that is essentially the same type and mix of work as the basic contract and is relatively small in value, the contracting officer may use what as the pre-negotiation objective for that change?

• A. Disregard the pre-negotiation objective
• B. Use the Basic contract's profit or fee rate as the pre-negotiation objective for that change
• C. Pay whatever the contractor asks
• D. Negotiate a new rate unrelated to the basic contract

Answer: (B)

When a change is basically the same type and mix of work as the base contract and is of small value, the pricing as you approach negotiations should stay aligned with the original contract. In that situation, using the basic contract’s profit or fee rate as the pre-negotiation objective provides a logical, consistent benchmark. It reflects similar risk and effort for the contractor, helps keep pricing coherent across the base contract and the modification, and speeds up negotiations by avoiding a fresh, separate rate determination for a minor change. The pre-negotiation objective isn’t the final price, but it guides expectations and sets a fair target based on what was already established. Disregarding this objective, paying whatever the contractor asks, or establishing a completely new rate unrelated to the base contract would undermine consistency, fairness, and efficiency in the negotiation.