SOFARS Solicitation Provision requiring DD-1547

[govtacct02]

The question I have is:

As a contractor, can the SOFARS solicitation provision 5652.215-9011 compel me to submit a DD Form 1547 "Record of Weighted Guidelines Method Application" with my proposal to the buying command?

I am having trouble reconciling this with the prohibition in FAR 15.404-(c )(5) from obtaining breakouts or supporting rationale for [a prospective contractor's] profit or fee objective. Thank you.

An editable SOFARS provision reads as follows:

5652.215-9011 Proposed Profit/Fee (2005) Section L

As prescribed in 5615.408®, insert the following provision, Editable

Offerors are encouraged to submit a completed DD Form 1547 "Record of Weighted Guidelines Method Application" to support the proposed profit in accordance with DFARS 215.404-71. The DD Form 1547 and supporting documentation are/are not required. If submitted, the DD Form 1547 and supporting documentation shall be included in the cost volume of the proposal.

The solicitation we received highlights "are required".

15.404-4 -- Profit stipulates:

(c )Contracting officer responsibilities.

(5)The contracting officer shall not require any prospective contractor to submit breakouts or supporting rationale for its profit or fee objective but may consider it, if it is submitted voluntarily.

[ji20874]

Can the solicitation require it? Yes. Yours does.

Perhaps you're thinking of filing a protest challenging use of the SOFARS provision in the solicitation? You will want expert legal advice. But you might ask yourself whether a weighted guidelines form rises to the level of "breakouts or supporting rationale for [a prospective contractor's] profit or fee objective" -- I tend to think it doesn't. The information on the weighted guidelines form can be used as an aid to help the contracting officer analyze profit/fee, but it does not divulge your firm's rationale for your profit/fee objective.

I wonder if the expectation is that a sole-source contractor will use the weighted guidelines approach to develop its profit/feeobjective. Would it be okay to submit a weighted guidelines form supporting a 10% fee along with a proposal actually asking for a 20% fee? Probably. You know, you can just claim the high end of the range for every category and let it be a matter of negotiation.

Since this is probably a sole-source acquisition, you may have a great deal of leverage to shape the outcome.

[govtacct02]

Thank you. I understand.

[here_2_help]

You know what? I like ji20874's advice.

I often advise folks to use the weighted guidelines to their advantage in profit/fee negotiations. You know the DOD negotiators will be using it, why not complete one and use it to support your position?

As was offered, you can just claim the high end of the range for every category. And even then, you can propose the profit/fee that you want, regardless of what the form says.

Good stuff.

[Guest Vern Edwards]

here_2_help is right on! You should prepare a DD1547 even if not asked to do so. Consider it an opportunity to Excel.