DoD profit policy Its effectiveness -- the contractor's view
Davis, James Patrick
Lamm, David V.
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The Federal Acquisition Regulation requires Government agencies to use a structured approach to determine prenegotiation profit objectives for those contracts requiring cost analysis. The structured approach utilized by the Department of Defense (DoD) is the Weighted Guidelines. This research sought to examine the effectiveness of the current Weighted Guidelines, as a vehicle for implementation of DoD profit policy, from the perspective of the defense industry. Industry opinions were solicited on a range of issues through use of a survey instrument. These issues included industry familiarity with the Weighted Guidelines, use of the Weighted Guidelines by industry to prepare for negotiations with the Government, value of profit policy and the Weighted Guidelines as incentives for firms to remain in the defense industrial base, and overall opinion of the Weighted Guidelines method. Respondent opinions were analyzed in detail, and conclusions and recommendations for improvement were presented.
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