What must be conducted to minimize the chances of defective pricing?

Obtaining DCAA audits before negotiations is the correct approach to minimize the chances of defective pricing. The DCAA (Defense Contract Audit Agency) provides an essential service in assessing and auditing contractors’ cost proposals to ensure that the pricing is based on accurate and complete data. By conducting these audits prior to negotiations, contracting officers can verify that the information provided by contractors is reliable and reflects the true costs associated with performance. This proactive measure allows for more informed negotiations, reduces the risk of uncovering pricing discrepancies later on, and promotes transparency and accountability in the contracting process.

This option emphasizes the importance of due diligence and thorough vetting of contractors' pricing prior to finalizing agreements. By contrast, relying solely on post-award audits does not effectively address potential defects in pricing before contracts are negotiated. Increasing contractor fees as a preventive measure may not actually address the underlying issues of pricing inaccuracies and could lead to unnecessary costs. Additionally, limiting communication with contractors contradicts the principle of fostering clear, open dialogue, which can aid in accurately negotiating and understanding cost structures.