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DEFM420 - Cost Analysis and Negotiation Techniques

Course Details

Course Code: DEFM420 Course ID: 4638 Credit Hours: 3 Level: Undergraduate

This course introduces methods and techniques necessary to analyze a contractor's cost proposal and to develop a Government negotiation objective. Students will apply the cost analysis techniques to analyze a contractor's proposal and develop a cost objective. The course also introduces negotiation terminology, styles, and techniques.

Course Schedule

Registration Dates Course Dates Session Weeks
07/27/21 - 12/31/21 01/03/22 - 02/27/22 Winter 2022 Session B 8 Week session
08/31/21 - 02/04/22 02/07/22 - 04/03/22 Winter 2022 Session I 8 Week session
11/30/21 - 04/29/22 05/02/22 - 06/26/22 Spring 2022 Session I 8 Week session

Current Syllabi

After successfully completing this course, students will fulfill the following Learning Objectives (LO):


  1. Explain the use and application of a contract audit.
  2. Explain the role of DCAA. Explain a contractor's estimating and accounting systems.
  3. Explain the contractor’s estimating process, and the government’s responsibility in analyzing contractor costs proposals.
  4. Explain cost objectives for direct material, direct labor, other direct costs, indirect costs, facilities cost of money, and profit/fee.
  5. Explain the significance of cost/price analysis and certified cost and pricing data when preparing for and after negotiations.
  6. Explain the process for conducting contract negotiations.
  7. Define the key factors and techniques required to prepare for proper analysis and negotiation of a contractor’s cost proposal.

Please see the Student Handbook to reference the University’s grading scale.

NameGrade %
Forums 32.00 %
Introductions 2.00 %
Wk 1 Forum 2.00 %
Wk 2 Forum 4.00 %
Wk 3 Forum 4.00 %
Wk 4 Forum 4.00 %
Wk 5 Forum 4.00 %
Wk 6 Forum 4.00 %
Wk 7 Forum 4.00 %
Wk 8 Forum 4.00 %
Paper Assignments 32.00 %
Assignment 1: Week 1: Paper 1 8.00 %
Assignment 2: Week 2: Paper 2 8.00 %
Assignment 6: Week 6: Paper 3 8.00 %
Assignment 7: Week 7: Paper 4 8.00 %
Term Project Outlines 12.00 %
Assignment 3: Week 3 4.00 %
Assignment 4: Week 4 4.00 %
Assignment 5: Week 5 4.00 %
Term Project Paper 24.00 %
Assignment 8: Week 8: Term Project Paper 24.00 %

Additional Resources:

Additional Resources:

Federal Acquisition Regulation (FAR) located at

Universal Commercial Code (UCC) located at

In the Course Materials folder there are PowerPoint presentations, leadership articles, and up to date APA handouts.

Netlibrary—you can read directly online. Note, printing is one page at a time and, depending on number of users at any one time, you may be locked out.


In addition to the required course texts the following public domain Websites are useful. Please abide by the university’s academic honesty policy when using Internet sources as well. Note web site addresses are subject to change.

Site Name

Website URL/Address

The OWL at Purdue

APA Style Homepage

Book Title:Business Risk Management : Models and Analysis - e-book available in the APUS Online Library
Publication Info:Wiley Lib
Author:Edward J. Anderson
Unit Cost:$57.05
Book Title:Cost-Based Pricing - e-book available in the APUS Online Library
Publication Info:Lib
Author:Oyer, Darrell
Unit Cost:$69.38
Book Title:Various resources from the APUS Library & the Open Web are used. Please visit to locate the course eReserve.

Previous Syllabi

Not current for future courses.