Profit factors | Weight ranges (percent) |
I. Contractor Effort (Weights applied to cost): | |
a. Material acquisitions: | |
(1) Purchased parts | 1 to 3. |
(2) Subcontracted items | 1 to 4. |
(3) Other materials | 1 to 3. |
b. Labor skills: | |
(1) Technical and managerial: | |
(a) Scientific | 10 to 20. |
(b) Project management/administration | 8 to 20. |
(c) Engineering | 8 to 14. |
(2) Manufacturing | 4 to 8. |
(3) Support services | 4 to 14. |
c. Overhead: | |
(1) Technical and managerial | 5 to 8. |
(2) Manufacturing | 3 to 6. |
(3) Support services | 3 to 7. |
d. Other direct costs | 3 to 8. |
e. G&A (General Management) expenses | 5 to 7. |
II. Contract Risk (type of contract-weights applied to total cost of items 4.a. thru 4.e.) | 0 to 8. |
III. Capital Investment (Weights applied to the net book value of allocable facilities) | 5 to 20. |
IV. Independent Research and Development: | |
a. Investment in IR&D program (Weights applied to allocable IR&D costs) | 5 to 7. |
b. Developed items employed (Weights applied to total of profit $ for items 4.a. thru 4.e.) | 0 to 20. |
V. Special Program Participation (Weights applied to total of Profit $ for items 4.a. thru 4.e.) | -5 to +5. |
VI. Other Considerations (Weights applied to total of Profits $ for items 4.a. thru 4.e.) | -5 to +5. |
VII. Productivity/Performance (special computation) | (N/A). |
48 C.F.R. §915.404-4-70-2