StacksVerified U.S. regulatory reference

48 CFR §1515.404-472

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov
  1. (a)Contracting officers may use methods other than those prescribed in 1515.404-470 for establishing profit or fee objectives under the following types of contracts and circumstances:
    1. (1)Architect-engineering contracts;
    2. (2)Personal service contracts;
    3. (3)Management contracts, e.g., for maintenance or operation of Government facilities;
    4. (4)Termination settlements;
    5. (5)Services under labor-hour and time and material contracts which provide for payment on an hourly, daily, or monthly basis, and where the contractor's contribution constitutes the furnishing of personnel.
    6. (6)Construction contracts; and
    7. (7)Cost-plus-award-fee contracts.
  2. (b)Generally, it is expected that such methods will:
    1. (1)Provide the contracting officer with a technique that will ensure consideration of the relative value of the appropriate profit factors described under “Profit Factors,” in FAR 15.404-4(d) and
    2. (2)Serve as a basis for documentation of the profit or fee objective.