Developing a pre-negotiation objective is very crucial in determining the outcome of the contract agreement and success. While developing pre-negotiation objectives is a significant step in contract formation, it often requires thorough evaluation of appropriate factors. Pre-negotiation objectives will identify the negotiation position of the Old Dominion University, department of Biology. This element assists the procurement officer in determining fair and reasonable prices of a water purification system. The results of the procurement officer’s analysis of the bidder’s proposal determine the pre-negotiation objectives. The analysis takes incorporates field-pricing aid, independent price histories and cost estimates of the department, and audit account and nominal analysis.