[Code of Federal Regulations]

[Title 48, Volume 4]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR415.404-4]



[Page 115]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                  CHAPTER 4--DEPARTMENT OF AGRICULTURE

 

PART 415_CONTRACTING BY NEGOTIATION--Table of Contents

 

                     Subpart 415.4_Contract Pricing

 

Sec. 415.404-4  Profit.





    (a)(1) USDA will use a structured approach to determine the profit 

or fee prenegotiation objective in acquisition actions when price 

negotiation is based on cost analysis.

    (2) The following types of acquisitions are exempt from the 

requirements of the structured approach, but the contracting officer 

shall comply with FAR 15.404-4(d) when analyzing profit for these 

contracts or actions:

    (i) Architect-engineer contracts;

    (ii) Construction contracts;

    (iii) Contracts primarily requiring delivery of material supplied by 

subcontractors;

    (iv) Termination settlements; and

    (v) Cost-plus-award-fee contracts;

    (b) Unless otherwise restricted by contracting activity procedures, 

the Contracting Officer may use another Federal agency's structured 

approach if that approach has been formalized and is maintained as part 

of that Agency's acquisition regulations (i.e., included in that 

Agency's assigned chapter of Title 48 of the Code of Federal 

Regulations).

    (c) The HCA is responsible for establishing procedures to ensure 

compliance with this subpart.