Profit

March 98

Commissions and bonuses (under whatever name) in connection with

obtaining or negotiating for a Government contract.

Contingency reserves.

Contributions and donations.

Dividend payments.

Entertainment.

Interest on borrowings.

Taxes, fees, or charges imposed upon, by reason of, or measured by

the firm's fee.

Bad debts, including losses arising from uncollected accounts.

Fines and penalties.

Losses on other contracts.

6. Profit: Appropriate provision has been made for a fair and reasonable

profit conforming to the principles set forth in FAR 15.9 -PROFIT. A fair and

reasonable profit may not be determined by simply apply a certain

predetermined percentage to the total estimated direct cost. Rather profit

should be established as a dollar amount after considering

Degree or risk.

Nature of the work to be performed.

Extend of the firm's investment.

Subcontracting.

7. When the negotiation is successful the Project Director will have a final

record VA Form 08-6298, "Work Form for A/E Fee Proposal", executed. The

individual cost items upon which the total agreed-upon A/E fees are based will

be tabulated thereon. The A/E(s) will sign the final record VA Form 08-6298

and the Certificate of Current Cost and Pricing Data thereon to certify his

concurrence with agreed-upon costs and the accuracy and validity of the data

and information which he applied upon which the agreed-upon fees are based.