DFARS 215.404-71-1 General

Subsection Defense Federal Acquisition Regulation Supplement

Facts

Citation
DFARS 215.404-71-1
Type
Subsection
Supplements
FAR 15.404 Proposal analysis
Last amended
67 FR 20688 Published Apr 26, 2002
Text as of
DFARS Change May 7, 2026
Official text
acquisition.gov

Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.

Text

(a) The weighted guidelines method focuses on four profit factors -

(1) Performance risk;

(2) Contract type risk;

(3) Facilities capital employed; and

(4) Cost efficiency.

(b) The contracting officer assigns values to each profit factor; the value multiplied by the base results in the profit objective for that factor. Except for the cost efficiency special factor, each profit factor has a normal value and a designated range of values. The normal value is representative of average conditions on the prospective contract when compared to all goods and services acquired by DoD. The designated range provides values based on above normal or below normal conditions. In the price negotiation documentation, the contracting officer need not explain assignment of the normal value, but should address conditions that justify assignment of other than the normal value. The cost efficiency special factor has no normal value. The contracting officer shall exercise sound business judgment in selecting a value when this special factor is used (see 215.404-71-5).

Federal Register history

Final rule Published Effective
Defense Federal Acquisition Regulation Supplement; Changes to Profit Policy 67 FR 20688 · DFARS Case 2000-D018 Not on record

Sections cited

Quick answers

What is DFARS 215.404-71-1?

DFARS 215.404-71-1 is a subsection of the Defense Federal Acquisition Regulation Supplement, titled "General".

When was DFARS 215.404-71-1 last changed?

The most recent final rule on record is "Defense Federal Acquisition Regulation Supplement; Changes to Profit Policy" (67 FR 20688), published Apr 26, 2002.

Are changes to DFARS 215.404-71-1 proposed?

No proposed rule from the last 3 years is waiting on a final rule.

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