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Hhs form 674 structured approach profit fee objective

Hhs form 674 structured approach profit fee objective 2025

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The document outlines a structured approach for determining profit and fee objectives for contractors under a specific contract type. It details various cost categories, including material acquisition, direct labor, overhead, and other costs, along with their respective weight ranges and assigned weights. Additionally, it includes factors such as cost risk, investment performance, and socioeconomic programs that influence the overall profit/fee objective. The rationale for each weight assignment is provided to justify the government's profit objectives.

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What is dd1547?

(1) The DD Form 1547 (i) Provides a vehicle for performing the analysis necessary to develop a profit objective; and. (ii) Provides a format for summarizing profit amounts subsequently negotiated as part of the contract price.

What is the tool used by DOD to apply a structured profit fee?

The DD Form 1547, Record of Weighted Guidelines (WGL) is used in the Department of Defense when a structured approach to profit analysis is required.

What is the maximum fee for a cost-plus fixed-fee contract?

3322(b) and 41 U.S.C. 3905 : (A) For experimental, developmental, or research work performed under a cost-plus-fixed-fee contract, the fee shall not exceed 15 percent of the contracts estimated cost, excluding fee.

What is the difference between profit and fee in government contracting?

Profit: The amount realized by a contractor after the costs of performance (both direct and indirect) are deducted from the amount to be paid under the terms of the contract. Fee: The amount paid to a contractor beyond allowable costs under a COST REIMBURSEMENT CONTRACT.

What is the micro purchase threshold for HHS?

2 CFR 200.320, which increases the micro-purchase threshold to $50,000. 2 CFR 200.333, which increases the amount of fixed amount subawards that a recipient may provide with agency prior written approval to $500,000.

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What is the allowable profit margin on a government contract?

For cost-plus contracts, where the government reimburses allowable costs plus a fee, profit margins tend to be lower, often around 7-8%. Fixed-price contracts, which put more risk on the contractor, generally allow for higher marginsin the 10-13% range. Other contract types also vary in profitability.

Hhs form 674 structured approach profit fee objective 2025

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What is dd1547?

What is the tool used by DOD to apply a structured profit fee?

What is the maximum fee for a cost-plus fixed-fee contract?

What is the difference between profit and fee in government contracting?

What is the micro purchase threshold for HHS?

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What is the allowable profit margin on a government contract?

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