Business Clearance is the formal approval from leadership to execute a contract after negotiations have been finalized. It’s accomplished by a contracting officer that develops a draft and final Price-Negotiation Memorandum (PCN) to be submitted for approval.

Guide: A Guide to Writing a Good Price Negotiation Memorandum (PNM) – Oct 2004

Price-Negotiation Memorandum (PNM): The PNM is the required formal document that reflects the price agreement for all negotiated awards not based on adequate price competition. The Contracting Officer is required to document all factors of a price negotiation. [1]

FAR 15.406-3, DFARS 215.406-3 and AFFARS 5301.9001, a preliminary and a final PNM are required to ensure proper documentation of the principle elements of the negotiated agreement.

Price-Competitive Memorandum (PCM): For acquisitions that are determined to meet the adequate price competition requirements, a PCM is the required formal document. [1] 

AcqNotes and References:

Updated: 7/18/2017

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