February 24, 2025
This webinar provides critical insights into the Department of Defense (DoD)’s profit policies and how businesses can justify and negotiate a higher profit or fees on DoD contracts and contract modifications that require the submission of certified cost or pricing data under Federal Acquisition Regulation (FAR) 15.403-4.
Defense Federal Acquisition Regulation Supplement (DFARS) 215.404-4(b)(1) requires DoD contracting officers to use a structured approach to develop a prenegotiation profit or fee objective on any negotiated contract action when certified cost or pricing data is obtained, except for cost-plus-award-fee (CPAF) contracts and contracts with Federally Funded Research and Development Centers (FFRDCs). The structured approach most commonly used by DoD contracting officers is called the “Weighted Guidelines” method. Under the Weighted Guidelines method, contracting officers are required to factor in performance risk, contract type risk, working capital, facilities capital employed (if proposed), and cost efficiency when developing their prenegotiation profit/fee objectives.
Many businesses are unaware that the government’s pre-negotiation profit objectives, developed using the Weighted Guidelines method, can vary significantly depending on the underlying assumptions and values used. Furthermore, some businesses do not realize that they can negotiate a higher profit or fee. As a result, they may unknowingly accept the Government’s proposed profit rate on contracts with higher-than-normal performance risk that warrant a higher profit.
In this webinar, you will learn how to develop effective strategies that can be used to negotiate higher profit or fee positions that are fully justified under DoD’s weighted guidelines (profit) method application.
Target Audience: Contractors pursuing opportunities with the Department of Defense, APEX Accelerator counselors, consultants, and coaches.
This webinar is offered to APEX Accelerator clients through the Empire APEX Accelerator Govology subscription. Govology provides government contracting education through a mix of live webinars, e-courses, podcasts, and digital resources.
To register for this webinar, contact the Empire APEX Accelerator at empireapex@nystec.com for free access.
