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I'm doing research for an acquisition that is in the low (barely) nine-figure range, CPFF, and for IT support services. The bulk of the requirement mostly entails LAN administration. In my opinion, this is a very low-risk set of services, especially since it's a CPFF contract type, and I was wondering what people here would think is an appropriate or reasonable fixed fee? I've heard everything from 4-8%, but I thought I would put it out there to hear what WIFCON would have to say. Any thoughts or experiences on the topic, no matter how redacted, would be helpful.

If in DoD, did you try the weighted guidelines?

  • Author
If in DoD, did you try the weighted guidelines?

No, I am not DOD, but do you know where I can obtain the weighted guidelines? DFARS? This is a civilian agency contract. I should have said that up front. We're talking only US domestic too, very few or no international implications in this contract.

No, I am not DOD, but do you know where I can obtain the weighted guidelines? DFARS? This is a civilian agency contract. I should have said that up front. We're talking only US domestic too, very few or no international implications in this contract.

You can also use the DEAR guidance on weighted guidelines (Energy Dept).

DEAR 915.4 -- here's a link:

http://farsite.hill.af.mil/reghtml/regs/ot...doe/doe1toc.htm

You can find a link to DFARS and other agency supplements under the Rules and Tools section of WIFCON. Before looking at the DFARS, check to see if your agency has included a weighted guidelines in its FAR supplement. Per FAR 15.404-4(B)(1), agencies making noncompetitive contract awards over $100K and totaling $50M or more a year are required to use a structured approach to determine fee. Although agencies can use other agency's structured approach, if your agency has developed a weighted guidelines or other structured approach you will need to use that instead of the DFARS.

  • Author
You can find a link to DFARS and other agency supplements under the Rules and Tools section of WIFCON. Before looking at the DFARS, check to see if your agency has included a weighted guidelines in its FAR supplement. Per FAR 15.404-4(B)(1), agencies making noncompetitive contract awards over $100K and totaling $50M or more a year are required to use a structured approach to determine fee. Although agencies can use other agency's structured approach, if your agency has developed a weighted guidelines or other structured approach you will need to use that instead of the DFARS.

Without revealing too much, I'll say that I work for an agency that isn't subject to FAR, but follows it when it feels like it. Thus, there is no agency supplement for my agency, although in my previous jobs at other agencies I've used such structured approaches. In this case I'm unfortunately having to operate without a lot of facts at my fingertips that would allow me to fill out a structured approach sheet. I've more been tasked with doing blind research on what is a likely fixed fee to expect given only the minimal facts I've stated here and a few others. I hope later to get more information in order to do a structured approach, but that won't be until down the road. That's why I'm asking for more of a ballpark number.

I would suggest that if you do not have sufficient data to fill out a structured approach, you do not have enough information to determine the price fair and reasonable.

I'm doing research for an acquisition that is in the low (barely) nine-figure range, CPFF, and for IT support services. The bulk of the requirement mostly entails LAN administration. In my opinion, this is a very low-risk set of services, especially since it's a CPFF contract type, and I was wondering what people here would think is an appropriate or reasonable fixed fee? I've heard everything from 4-8%, but I thought I would put it out there to hear what WIFCON would have to say. Any thoughts or experiences on the topic, no matter how redacted, would be helpful.

Is there competition? If not, did run a Weighted Guidelines? If there is competition, you cannot question fee unless it falls over the statutory threshold. By running a weighted guidelines, it will give you a good starting point for negotiation.

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