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HHS-674


Structured Approach

Profit/Fee

ContractorRFP/Contract No.
Business UnitContract Type
Address
Contractor Effort

1.  Cost Category

Government’s

Cost Objective

(a)

Weight Range

(b)

Assigned Weight

(c)

Weighted Profit/Fee

((a) x (c))

(d)

Material Acquisition 

 

  
     
  

1% to 5%

  
  

(.01 to .05)

  
     
Direct Labor    
     
  

4% to 15%

  
  

(.04 to .15)

  
     
Overhead    
     
  

4% to 9%

  
  

(.04 to .09)

  
     
Other Costs    
     
  

1% to 5%

  
  

(.01 to .05)

  
General Management (G&A) 

 

4 % to 8%

  
  

(.04 to .08)

  
     
1.A Total    

                                                                                                                    

 

 

Structured Approach

Profit/Fee Objective

2.

 

Factor

 

Measurement Base

(a)

 

Weight Range

(b)

 

Assigned Weight

(c)

Weighted Profit/Fee

1.A(a) x (c)

(d)

Cost Risk 

0% to 7%

(o to .07)

  
Investment 

-2% to +2%

(-.02 to + .02)

  
Performance 

-1% to +1%

(-.01 to +01)

  
Socioeconomic Programs 

-.5% to +.5%

(-.05 to + .05)

 

0

 

0

Special Situations    
2.A  Total Other Factors 

 

  

3.  Subtotal Profit/Fee

Lines 1.A(d) (from page 1) + 2.A(d)

 

 

  
4.  Less Facilities Capital Cost of Money  

5.  Total Profit/Fee Objective Line 3 - 4

 

   
Form HHS-674 (12/81)                                                                                                                      


Rationale

Structured Approach Profit/Fee Objectives

Contract No. [CONTRACT NUMBER]

 

A Structured Approach Profit/Fee Objective, HHS-674, was developed for this [Type of Contract] contract.  A rationale of the Government’s profit objective is detailed as follows:

Material Overhead

The profit weight measurement for this element is 1% to 5%.  The weight of [PERCENTAGE]% was determined the assigned weight.

Direct Labor

The profit weight range for direct labor is 4% -15%.  The weight of [PERCENTAGE]% was determined the assigned weight within the labor category.  [RATIONALE]

Overhead

The provide weight range for this element is 4%-9%. The weight of [PERCENTAGE]% was determined the assigned weight within the labor category.  [RATIONALE]

Other Costs

The profit weight measurement for this element is 1%-5%. The weight of [PERCENTAGE]% was determined the assigned weight within the labor category.  [RATIONALE]

General Management - G&A

The profit weight measurement for this element is 4%-8%. The weight of [PERCENTAGE]% was determined the assigned weight within the labor category.  
[RATIONALE
]

Other Cost Factors

Cost Risk

The profit weight range for this element is from 0%-7%. The weight of [PERCENTAGE]% was determined the assigned weight within the labor category.  [RATIONALE]

Investment

The profit weight range for this element is from -2% - +2%. The weight of [PERCENTAGE]% was determined the assigned weight within the labor category.  [RATIONALE]

Performance

The profit weight range for this element is from -1% - +1%. The weight of [PERCENTAGE]% was determined the assigned weight within the labor category.  [RATIONALE]

Socioeconomic Program.

The profit weight range for this element is from -.5% - +5%.  The weight of 0% was determined the assigned weight within the labor category because socioeconomic programs are not mandatory for overseas procurements.

Special Situations

[RATIONALE]

 

Total Profit/Fee Objective

 

The results of the analysis allowed the Contract a profit/fee of $[AMOUNT] or [PERCENTAGE]%.

 

___________________________                  _________________________

Contracting Office Signature                         Date