Common use of Profit Negotiation Clause in Contracts

Profit Negotiation. The non-Federal entity must negotiate profit as a separate element of the price for each contract in which there is no price competition and, in all cases, where cost analysis is performed for purchases in excess of $250,000, utilizing Federal Funds. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work. (XXXXX Xxxxxxxxxx)

Profit Negotiation. The non-Federal entity must negotiate profit as a separate element of the price for each contract in which there is no price competition and, and in all cases, cases where cost analysis is performed for purchases in excess of $250,000150,000, utilizing Federal Funds. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work. (XXXXX Xxxxxxxxxx)