BCM

A Business Clearance Memorandum is an internal government document that documents the contracting officer's analysis and determination that a proposed contract action represents a fair and reasonable price and complies with applicable laws and regulations. The BCM summarizes the procurement, price analysis, negotiations, and rationale for award.

BCMs are required for negotiated procurements and document the contracting officer's independent judgment on price reasonableness. They include analysis of cost or pricing data (when required), comparison to independent government estimates, competition results, and any other factors supporting the price determination. The BCM becomes part of the official contract file.