HHS-674
Structured Approach Profit/Fee | ||||
| Contractor | RFP/Contract No. | |||
| Business Unit | Contract Type | |||
| Address | ||||
| Contractor Effort | ||||
1. Cost Category | Government’s Cost Objective (a) | Weight Range (b) | Assigned Weight (c) | Weighted Profit/Fee ((a) x (c)) (d) |
| Material Acquisition |
| |||
1% to 5% | ||||
(.01 to .05) | ||||
| Direct Labor | ||||
4% to 15% | ||||
(.04 to .15) | ||||
| Overhead | ||||
4% to 9% | ||||
(.04 to .09) | ||||
| Other Costs | ||||
1% to 5% | ||||
(.01 to .05) | ||||
| General Management (G&A) |
4 % to 8% | |||
(.04 to .08) | ||||
| 1.A Total | ||||
Structured Approach Profit/Fee Objective | ||||
| 2. | ||||
Factor |
Measurement Base (a) |
Weight Range (b) |
Assigned Weight (c) | Weighted Profit/Fee 1.A(a) x (c) (d) |
| Cost Risk | 0% to 7% (o to .07) | |||
| Investment | -2% to +2% (-.02 to + .02) | |||
| Performance | -1% to +1% (-.01 to +01) | |||
| Socioeconomic Programs | -.5% to +.5% (-.05 to + .05) |
0 |
0 | |
| Special Situations | ||||
| 2.A Total Other Factors |
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3. Subtotal Profit/Fee Lines 1.A(d) (from page 1) + 2.A(d)
|
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| 4. Less Facilities Capital Cost of Money | ||||
5. Total Profit/Fee Objective Line 3 - 4
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Rationale
Structured Approach Profit/Fee Objectives
Contract No. [CONTRACT NUMBER]
A Structured Approach Profit/Fee Objective, HHS-674, was developed for this [Type of Contract] contract. A rationale of the Government’s profit objective is detailed as follows:
Material Overhead
The profit weight measurement for this element is 1% to 5%. The weight of [PERCENTAGE]% was determined the assigned weight.
Direct Labor
The profit weight range for direct labor is 4% -15%. The weight of [PERCENTAGE]% was determined the assigned weight within the labor category. [RATIONALE]
Overhead
The provide weight range for this element is 4%-9%. The weight of [PERCENTAGE]% was determined the assigned weight within the labor category. [RATIONALE]
Other Costs
The profit weight measurement for this element is 1%-5%. The weight of [PERCENTAGE]% was determined the assigned weight within the labor category. [RATIONALE]
General Management - G&A
The profit weight measurement for this element is 4%-8%. The weight of [PERCENTAGE]% was determined the assigned weight within the labor category.
[RATIONALE]
Other Cost Factors
Cost Risk
The profit weight range for this element is from 0%-7%. The weight of [PERCENTAGE]% was determined the assigned weight within the labor category. [RATIONALE]
Investment
The profit weight range for this element is from -2% - +2%. The weight of [PERCENTAGE]% was determined the assigned weight within the labor category. [RATIONALE]
Performance
The profit weight range for this element is from -1% - +1%. The weight of [PERCENTAGE]% was determined the assigned weight within the labor category. [RATIONALE]
Socioeconomic Program.
The profit weight range for this element is from -.5% - +5%. The weight of 0% was determined the assigned weight within the labor category because socioeconomic programs are not mandatory for overseas procurements.
Special Situations
[RATIONALE]
Total Profit/Fee Objective
The results of the analysis allowed the Contract a profit/fee of $[AMOUNT] or [PERCENTAGE]%.
___________________________ _________________________
Contracting Office Signature Date