Meaning of should cost
A concept of contract Pricing that employs an integrated team of Government Procurement cost and price analysts, contract administration, auditors, and Engineering representatives to conduct a coordinated, indepth Cost review and Evaluation of a program at the contractor's plant. Its purpose is to identify uneconomical or inefficient practices in the contractor's management and operations, to quantify the findings in terms of their impact on cost, and to develop a realistic price objective for Negotiations or for the program that reflects the results of the shouldcost effort.
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