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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: April 26, 2002

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Changes to Profit Policy

SOURCE: Federal Register, April 26, 2002, Vol. 67, No. 81, page 20688

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is amending DFARS 215.404-71, Weighted Guidelines Method, to change DOD profit policy to reduce the emphasis on facilities investment, add general and administrative expense to the cost base used in determining profit objectives, increase emphasis on performance risk, and encourage contractor cost efficiency.

EDITOR'S NOTE: There have been three proposed rules to revise the profit policy in DFARS Subpart 215.4. For more on these proposed rules, see the September 21, 2001, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Profit Policy"; the July 24, 2000, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Profit Policy"; and the May 22, 2000, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Profit Incentives to Produce Innovative New Technologies."

For more on the advanced notice of proposed rulemaking that started the effort to revise DFARS Subpart 215.4, see the February 10, 2000, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Profit Policy."

EFFECTIVE DATE: April 26, 2002.

FOR FURTHER INFORMATION CONTACT: Sandra Haberlin, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0289; fax: 703-602-0350. Cite DFARS Case 2000-D018 when referring to this final rule.

SUPPLEMENTAL INFORMATION: DOD is revising its profit policy as follows:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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