This brief report argues against the cost analysis process currently used as a form of rate justification by states and central agencies who are purchasing child care. Instead, a logic is proposed for negotiated rates based on expected levels of necessary costs and reasonable rates in comparison with open market levels as shown on day care centers' published rate cards. Three short papers related to these issues are included: (1) a brief rationale for predicting necessary and reasonable rates based on requirements and regulations, accompanied by an extensive breakdown of minimum child care costs in Orange County, Florida; (2) a comparison of Title XX reimbursement of child care center rates schedules in two Florida counties; and (3) a position statement on Florida standards of child care and payments for purchase of child care. (Author/JMB)