SLK Contractor

Thank you!

Follow-up question if you please:

1. We understand that the most commonly used method for determining profit/fee is Weighted Guidelines, but there is also reference to "alternate approaches" - on any given contract, is it the CO's decision to use Weighted Guildelines or an alternate approach?

2. Is there any information on these "alternate approaches" available to contractors?

Very helpful, thank you!

I am a Sr. Accountant for a small business subcontractor. We are bidding on our first primes this year, I am part of the pricing team. In the effort to put together the most competitive bids we can, we are trying to inform ourselves on all pricing strategies out there. My question is in regards to profit.

We came across the Weighted Guidelines structured approach to evaluate profit, and advice that contractors fill out DD Form 1547 in advance, even though it is supposed to be done by the CO, to bid the most supportable profit & assist us in negotiating profit with our DoD customer if we should get an award.

The question came up, does anyone know of a similar structured approach and/or equivalent to Form 1547 that DHS or FAA Contracting Officers would use in profit determination/negotiations? Or do they just default to using the DoD method of weighted guidelines too?

Thanks in advance for any advice or links.