The price negotiation memorandum shall reflect which information when data are adjusted or corrected?

• A. The adjustments made to the data or the corrected data used to negotiate the contract price
• B. Only the original data before any corrections
• C. The entire company’s data set
• D. The price adjustment narrative without data specifics

Answer: (A)

This item tests how the data basis for the negotiated price is documented, including any corrections or adjustments applied to that data. When data are adjusted or corrected, those changes must be reflected in the price negotiation memorandum so the reviewer sees exactly what was used to determine the price and why. Recording only the original data would obscure the basis for the price, while including an entire company data set isn’t necessary and could muddy the specific data that influenced the decision. A narrative without data specifics wouldn’t show the adjustments that affected the price. Therefore, the memo should reflect the adjustments made to the data or the corrected data that were used to negotiate the contract price.