Profit/Fee - Structured Approaches

The three structured approaches used for developing a pre-negotiation profit or fee objective are:

• the weighted guidelines method (DFARS and DFARS/PGI 215.404-71, References (k) and (h)),

• the modified weighted guidelines method (DFARS 215.404-72, Reference (k)), and

• an alternate structured approach (DFARS 215.404-73, Reference (k)). The weighted guidelines method is the most commonly used structured approach for profit analysis.