Profit Primer: An Evaluation of Alternate Profit Determination Models.
CONSTRUCTION ENGINEERING RESEARCH LAB (ARMY) CHAMPAIGN ILL
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This report evaluates six profit determination models as candidates for selection as the official profit determination procedure for the U.S. Army Corps of Engineers. In addition, it provides a summary of current profit theory profit regulatory requirements Government profit policy and 19 profit factors, including the four major categories which comprise the weighted guideline WGL method of the Defense Acquisition Regulation DAR. Of the six profit determination models considered, one will be selected for further development and calibration. This report documents the first phase of a study which will define fair and reasonable profit on construction contracts, change orders, and architect-engineer A-E contracts, provide a procedure for computing a fair and reasonable profit objective on Corps contracts, and facilitate the implementation of a selected profit procedure. Author
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