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PROFIT POLICY UPDATE Mike Canales DEFENSE PROCUREMENT AND ACQUISITION POLICY (Policy)

PROFIT POLICY UPDATE Mike Canales DEFENSE PROCUREMENT AND ACQUISITION POLICY (Policy). Michael.Canales@osd.mil 703.695.8571 Pentagon 3C838 June 2003. Regulatory Background. FAR 15.404-4 requires a structured approach to profit analysis DFARS 215.404-4 and DFARS 215.404-71 thru 215.404-76

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PROFIT POLICY UPDATE Mike Canales DEFENSE PROCUREMENT AND ACQUISITION POLICY (Policy)

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  1. PROFIT POLICY UPDATE Mike Canales DEFENSE PROCUREMENT AND ACQUISITION POLICY (Policy) Michael.Canales@osd.mil 703.695.8571 Pentagon 3C838 June 2003

  2. Regulatory Background • FAR 15.404-4 requires a structured approach to profit analysis • DFARS 215.404-4 and DFARS 215.404-71 thru 215.404-76 • Describes DoD structured approach • Levies requirement for reporting profit information

  3. “Recent” Profit Policy Changes • December 2000 – “Technology Incentive” Factor • April 2002 – (DFARS CASE 2000-D018) • Cost Efficiency • Performance Risk • Buildings/Equipment • G&A included in the Cost Base

  4. Training/Tools • Continuous Learning Modules “Profit Policy Revisions” • http://clc.dau.mil(go to learning center, click course information and access, go to keyword, enter “profit”) • Contract Pricing Reference Guides • http://www.acq.osd.mil/DPAP/guidebooks/index2.htm • http://www.acq.osd.mil/dpap/contractpricing/about.htm • Air Force WGL Tool • https://www.wgl.wpafb.af.mil/wgl/default.asp

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