48 CFR · Federal Acquisition Regulations System
§ 215.404-71-1 — General.
eCFR · current through Aug 7, 2026
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
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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.