48 CFR · Federal Acquisition Regulations System
§ 215.404-71-1 — General.
48 CFR § 215.404-71-1
TitleTitle 48: Federal Acquisition Regulations SystemPartPart 215: Contracting by Negotiation
SourceeCFR (current through May 7, 2026)
This text of 48 C.F.R. § 215.404-71-1 (General.) is published on Counsel Stack Legal Research, covering United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Bluebook
48 C.F.R. § 215.404-71-1 (2026).
Text
215.404-71-1 General.
(a)The weighted guidelines method focuses on four profit factors—
(1)Performance risk;
(2)Contract type risk;
(3)Facilities capital employed; and
(4)Cost efficiency.
(b)The contracting officer assigns values to each profit factor; the value multiplied by the base results in the profit objective for that factor. Except for the cost efficiency special factor, each profit factor has a normal value and a designated range of values. The normal value is representative of average conditions on the prospective contract when compared to all goods and services acquired by DoD. The designated range provides values based on above normal or below normal conditions. In the price negotiation documentation, the contracting officer need not explain assignment of the normal
Free access — add to your briefcase to read the full text and ask questions with AI
Nearby Sections
11
§ 215.404-2
Data to support proposal analysis.§ 215.404-3
Subcontract pricing considerations.§ 215.404-4
Profit.§ 215.404-71
Weighted guidelines method.§ 215.404-71-1
General.§ 215.404-71-2
Performance risk.§ 215.404-71-3
Contract type risk and working capital adjustment.§ 215.404-71-4
Facilities capital employed.§ 215.404-71-5
Cost efficiency factor.Cite This Page — Counsel Stack
Bluebook (online)
48 C.F.R. § 215.404-71-1, Counsel Stack Legal Research, https://law.counselstack.com/cfr/48/215/215.404-71-1.