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Guidance on Evaluation of Risk in Negotiating Contract Profit or Fee
Reference:DPAP memorandum (12/01/2016)

Summary: This guidance is intended to reinforce existing policy to evaluate performance (and contract type) risk using the structured approach that the DoD Weighted Guidelines (DFARS 215.404-71) provides. Over the past few years, the DoDIG has conducted several audits related to profit paid to prime contractors for work subcontracted to DoD depots. The DoDIG found that contracting officers, when calculating a recommended profit, were not adequately assessing/not documenting the risks associated with the work performed by a DoD depot.

POC: 703-693-4076
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