![]() This potential remuneration element and the Government’s estimate of allowable costs to be incurred in contract performance together equal the Government’s total prenegotiation objective. ![]() Rather, they represent that element of the potential total remuneration that contractors may receive for contract performance over and above allowable costs. (1) Profit or fee prenegotiation objectives do not necessarily represent net income to contractors. This subsection prescribes policies for establishing the profit or fee portion of the Government prenegotiation objective in price negotiations based on cost analysis.
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