DEFENSE PROCUREMENT AND ACQUISITION POLICY (Policy)

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Presentation transcript:

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 Describes DoD structured approach Levies requirement for reporting profit information

“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

“Profit Policy Revisions” 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