Contract Profit/Fee Policies, 28663 [E7-9754]
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Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Proposed Rules
C. Paperwork Reduction Act
DEPARTMENT OF DEFENSE
The Paperwork Reduction Act does
not apply, because the rule does not
impose any information collection
requirements that require the approval
of the Office of Management and Budget
under 44 U.S.C. 3501, et seq.
Defense Acquisition Regulations
System
List of Subjects in 48 CFR Part 207
AGENCY:
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Therefore, DoD proposes to amend 48
CFR part 207 as follows:
PART 207—ACQUISITION PLANNING
1. The authority citation for 48 CFR
part 207 continues to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
2. Section 207.470 is amended as
follows:
a. By redesignating paragraphs (a) and
(b) as paragraphs (b) and (c)
respectively;
b. By adding a new paragraph (a); and
c. In newly designated paragraph (c),
by removing ‘‘Except as provided in
paragraph (a) of this section’’ and
adding in its place ‘‘Except as provided
in paragraphs (a) and (b) of this
section’’. The new paragraph (a) reads as
follows:
jlentini on PROD1PC65 with PROPOSALS
Statutory requirements.
(a) Requirement for statutory
authorization for certain contracts
relating to vessels, aircraft, and combat
vehicles. The contracting officer shall
not enter into any contract for any
vessel, aircraft, or combat vehicle,
through a lease, charter, or similar
agreement, or for services that provide
for the use of the contractor’s vessel,
aircraft, or combat vehicle, unless—
(1) The head of the agency has
satisfied the requirements of 10 U.S.C.
2401; and
(2)(i) The contract will be a long-term
lease, charter, or similar agreement (10
U.S.C. 2401(d)(1)); or
(ii) The terms of the contract provide
for a substantial termination liability (10
U.S.C. 2401(d)(2)).
*
*
*
*
*
[FR Doc. E7–9744 Filed 5–21–07; 8:45 am]
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Contract Profit/Fee Policies
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Request for public input.
Government procurement.
207.470
48 CFR Part 215
SUMMARY: DoD is conducting a review of
the Department’s contract profit/fee
policies. As part of this review, DoD
would like to hear the views of
interested parties regarding the
effectiveness of the profit/fee policies
presently used for DoD contracts.
DATES: Submit written comments to the
address shown below on or before July
23, 2007.
ADDRESSES: Submit comments to: Office
of the Director, Defense Procurement
and Acquisition Policy, ATTN: OUSD
(AT&L) DPAP (CPF), IMD 3C132, 3062
Defense Pentagon, Washington, DC
20301–3062. Comments also may be
submitted by facsimile at (703) 602–
7887, or by e-mail at Bill.Sain@osd.mil.
FOR FURTHER INFORMATION CONTACT: Mr.
Bill Sain, by telephone at (703) 602–
0293, or by e-mail at Bill.Sain@osd.mil.
SUPPLEMENTARY INFORMATION: DoD
contract profit/fee policies, to include
policy for developing pre-negotiation
profit or fee objectives, are described in
the Defense Federal Acquisition
Regulation Supplement (DFARS), in
sections 215.404–4 and 215.404–70
through 215.404–76. One of the key
aspects of DoD’s profit policy is the
Weighted Guidelines. While there have
been some revisions to the Weighted
Guidelines over the past few years, the
basis for the existing policy was
established in the mid-1980s. Since
then, there have been a number of
changes, including (1) the evolution of
DoD’s acquisition programs, (2)
extensive industry consolidation, and
(3) a significant increase in the number
of DoD contracts for services. In light of
these many changes, DoD is interested
in receiving public input on the existing
profit/fee policies, with regard to those
that are working effectively and those
that should be revised or eliminated,
along with supporting rationale.
Potential areas for consideration
include, but are not limited to, the
following:
• The contractor risk factors used in
DoD’s structured approach for
developing profit/fee objectives,
particularly with regard to—
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28663
• The pertinence of the existing
factors;
• Whether the ranges and normal
values used for the existing factors are
still valid; and
• Whether there are other risk factors
that are not reflected in the existing
policies.
• Any changes needed to—
• The technology incentive at DFARS
215.404–71–2(c)(2) and (d)(4);
• The contract type risk factor at
DFARS 215.404–71–3;
• The facilities capital employed
factor at DFARS 215.404–71–4;
• The cost efficiency factor at DFARS
215.404–71–5;
• The modified weighted guidelines
at DFARS 215.404–72;
• The policies as they provide for
consideration of the amount of
investment a contractor has in a
contract;
• The policies as they provide for
consideration of the extent of contract
financing payments;
• The policies as they apply to
contracts for services; and
• The policies as they apply to
contracts for research, development,
test, and evaluation.
• Whether any of the existing
structured approaches for profit analysis
should play a role in establishing the
base fee or pool on award-fee contracts.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
[FR Doc. E7–9754 Filed 5–21–07; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 232
Contract Financing
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Request for public input.
AGENCY:
SUMMARY: DoD is conducting a review of
the Department’s contract financing
policies. As part of this review, DoD
would like to hear the views of
interested parties regarding the
effectiveness of the financing policies
presently used for DoD contracts.
DATES: Submit written comments to the
address shown below on or before July
23, 2007.
ADDRESSES: Submit comments to: Office
of the Director, Defense Procurement
and Acquisition Policy, ATTN: OUSD
E:\FR\FM\22MYP1.SGM
22MYP1
]]>Agencies
[Federal Register Volume 72, Number 98 (Tuesday, May 22, 2007)]
[Proposed Rules]
[Page 28663]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-9754]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 215
Contract Profit/Fee Policies
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Request for public input.
-----------------------------------------------------------------------
SUMMARY: DoD is conducting a review of the Department's contract
profit/fee policies. As part of this review, DoD would like to hear the
views of interested parties regarding the effectiveness of the profit/
fee policies presently used for DoD contracts.
DATES: Submit written comments to the address shown below on or before
July 23, 2007.
ADDRESSES: Submit comments to: Office of the Director, Defense
Procurement and Acquisition Policy, ATTN: OUSD (AT&L) DPAP (CPF), IMD
3C132, 3062 Defense Pentagon, Washington, DC 20301-3062. Comments also
may be submitted by facsimile at (703) 602-7887, or by e-mail at
Bill.Sain@osd.mil.
FOR FURTHER INFORMATION CONTACT: Mr. Bill Sain, by telephone at (703)
602-0293, or by e-mail at Bill.Sain@osd.mil.
SUPPLEMENTARY INFORMATION: DoD contract profit/fee policies, to include
policy for developing pre-negotiation profit or fee objectives, are
described in the Defense Federal Acquisition Regulation Supplement
(DFARS), in sections 215.404-4 and 215.404-70 through 215.404-76. One
of the key aspects of DoD's profit policy is the Weighted Guidelines.
While there have been some revisions to the Weighted Guidelines over
the past few years, the basis for the existing policy was established
in the mid-1980s. Since then, there have been a number of changes,
including (1) the evolution of DoD's acquisition programs, (2)
extensive industry consolidation, and (3) a significant increase in the
number of DoD contracts for services. In light of these many changes,
DoD is interested in receiving public input on the existing profit/fee
policies, with regard to those that are working effectively and those
that should be revised or eliminated, along with supporting rationale.
Potential areas for consideration include, but are not limited to, the
following:
The contractor risk factors used in DoD's structured
approach for developing profit/fee objectives, particularly with regard
to--
The pertinence of the existing factors;
Whether the ranges and normal values used for the existing
factors are still valid; and
Whether there are other risk factors that are not
reflected in the existing policies.
Any changes needed to--
The technology incentive at DFARS 215.404-71-2(c)(2) and
(d)(4);
The contract type risk factor at DFARS 215.404-71-3;
The facilities capital employed factor at DFARS 215.404-
71-4;
The cost efficiency factor at DFARS 215.404-71-5;
The modified weighted guidelines at DFARS 215.404-72;
The policies as they provide for consideration of the
amount of investment a contractor has in a contract;
The policies as they provide for consideration of the
extent of contract financing payments;
The policies as they apply to contracts for services; and
The policies as they apply to contracts for research,
development, test, and evaluation.
Whether any of the existing structured approaches for
profit analysis should play a role in establishing the base fee or pool
on award-fee contracts.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
[FR Doc. E7-9754 Filed 5-21-07; 8:45 am]
BILLING CODE 5001-08-P
