FACTOR RATE WEIGHT VALUE
1. Degree of Risk 20 0.1 2
2. Relative Difficulty of Work 15 0.09 1.35
3. Size of Job 15 0.12 1.8
4. Period of Performance 15 0.05 0.75
5. Contractors Investment 5 0.12 0.6
6. Assistance by Government 5 0.1 0.5
7. Subcontracting 25 0.12 3
100 PROFIT: 10
Based on the circumstances of each procurement action, each of the above factors shall be weighted from .03 to .12 as indicated below. The value shall be obtained by multiplying the rate by the weight. The value column when totaled indicates the fair and reasonable profit percentage under the circumstances of the particular procurement.
1. Degree of Risk. Where the work involves no risk or the degree of risk is very small, the weighting should be .03;
as the degree of risk increases, the weighting should be increased up to a maximum of .12. Lump sum items will have, generally, a higher weighted value than unit price items for which quantities are provided. Other things to consider: the work to be done by the subcontractors, nature of work, where work is to be performed, reasonableness of negotiated costs, amount of labor included in costs, whether the negotiation is done before or after the performance of work, etc. BASIS FOR WEIGHT ASSIGNMENT: Degree of risk is considered above average for this work.
2. Relative Difficulty of Work. If the work is most difficult and complex, the weighting should be .12 and should be proportionately reduced to .03 on the simplest of jobs. This factor is tied in to some extent with the degree of risk. Some things to consider: the nature of the work, by whom it is to be done, where, what is the time schedule, etc.
BASIS FOR WEIGHT ASSIGNMENT: This work has be determined to have a high degree of dificulty.
3. Size of Job. All work not in excess of $100,000 shall be weighted at .12. Work estimated between $100,000 and
$5,000,000 shall be proportionately weighted form .12 to .05. Work from $5,000,000 to $10,000,000 shall be weighted
at .04, and work in excess of $10,000,000 at .03. BASIS FOR WEIGHT ASSIGNMENT: The work is estimated to be less than $100k
4. Periods of Performance. Jobs in excess of 24 months are to be weighted at .12. Jobs of lesser duration are to be proportionately weighted to a minimum of .03 for jobs not to exceed 30 days. BASIS FOR WEIGHT ASSIGNMENT:
The work is less than 24 months
5. Contractor's Investment. To be weighted from .03 to .12 on the basis of below average, average, and above average.
Things to consider: amount of subcontracting, mobilization payment item, Government-furnished property, method of making progress payments, etc. BASIS FOR WEIGHT ASSIGNMENT: The contractor investment is above average
6. Assistance by Government. To be weighted from .12 to .03 on the basis of average to above average. Things to consider: use of Government- owned property, equipment and facilities, expediting assistance, etc.
BASIS FOR WEIGHT ASSIGNMENT: Assistance by the Government is above average.
7. Subcontracting. To be weighted inversely proportional to the amount of subcontracting. Where 80% of more of the work is to be subcontracted, the weighting is to be .03 and such weighting proportionately increased to .12 where all work is performed by the contractor's own forces. BASIS FOR WEIGHT ASSIGNMENT: All subcontracting work.
Contract No. DACA21-95-C-0007 MCB No. 95-07-4E
Location: Fort Bragg, North Carolina Prepared By: Marcia Meekins
SAS Form 1039 6 Nov 90 Computation for (Prime Contractor) (Subcontractor) Profit.
CONTRACTOR: PRIME CONTRACTOR
FACTOR RATE WEIGHT VALUE
1. Degree of Risk 20 0.1 2
2. Relative Difficulty of Work 15 0.09 1.35
3. Size of Job 15 0.12 1.8
4. Period of Performance 15 0.05 0.75
5. Contractors Investment 5 0.1 0.5
6. Assistance by Government 5 0.12 0.6
7. Subcontracting 25 0.1 2.5
100 PROFIT: 9.5
Based on the circumstances of each procurement action, each of the above factors shall be weighted from .03 to .12 as indicated below. The value shall be obtained by multiplying the rate by the weight. The value column when totaled indicates the fair and reasonable profit percentage under the circumstances of the particular procurement.
1. Degree of Risk. Where the work involves no risk or the degree of risk is very small, the weighting should be .03;
as the degree of risk increases, the weighting should be increased up to a maximum of .12. Lump sum items will have, generally, a higher weighted value than unit price items for which quantities are provided. Other things to consider: the work to be done by the subcontractors, nature of work, where work is to be performed, reasonableness of negotiated costs, amount of labor included in costs, whether the negotiation is done before or after the performance of work, etc. BASIS FOR WEIGHT ASSIGNMENT: Degree of risk is considered average for Prime Contractor.
2. Relative Difficulty of Work. If the work is most difficult and complex, the weighting should be .12 and should be proportionately reduced to .03 on the simplest of jobs. This factor is tied in to some extent with the degree of risk. Some things to consider: the nature of the work, by whom it is to be done, where, what is the time schedule, etc.
BASIS FOR WEIGHT ASSIGNMENT: Degree of difficulty is considered above average.
3. Size of Job. All work not in excess of $100,000 shall be weighted at .12. Work estimated between $100,000 and
$5,000,000 shall be proportionately weighted form .12 to .05. Work from $5,000,000 to $10,000,000 shall be weighted
at .04, and work in excess of $10,000,000 at .03. BASIS FOR WEIGHT ASSIGNMENT: The work is estimated to be less than $100k.
4. Periods of Performance. Jobs in excess of 24 months are to be weighted at .12. Jobs of lesser duration are to be proportionately weighted to a minimum of .03 for jobs not to exceed 30 days. BASIS FOR WEIGHT ASSIGNMENT:
The work is less than 24 months.
5. Contractor's Investment. To be weighted from .03 to .12 on the basis of below average, average, and above average.
Things to consider: amount of subcontracting, mobilization payment item, Government-furnished property, method of
making progress payments, etc. BASIS FOR WEIGHT ASSIGNMENT: The Prime Contractor's investment is above average.
6. Assistance by Government. To be weighted from .12 to .03 on the basis of average to above average. Things to consider: use of Government- owned property, equipment and facilities, expediting assistance, etc.
BASIS FOR WEIGHT ASSIGNMENT: No assistance by the Government.
7. Subcontracting. To be weighted inversely proportional to the amount of subcontracting. Where 80% of more of the work is to be subcontracted, the weighting is to be .03 and such weighting proportionately increased to .12 where all work is performed by the contractor's own forces. BASIS FOR WEIGHT ASSIGNMENT: All subcontracting work.
Contract No. DACA21-95-C-0007 MCB No. 95-07-4E
Location: Fort Bragg, North Carolina Prepared By: Marcia Meekins
SAS Form 1039 6 Nov 90 Computation for (Prime Contractor) (Subcontractor) Profit.
88