Profit/Fee - Structured Approaches

From Knowledge base

[1]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.

References

  1. DCMA-INST 120 April 1, 2014, Section 3.3.7.1