The Wages of Risk: Determining Fair and Reasonable Profit Objectives.
Final rept. for period ending FY79,
CONSTRUCTION ENGINEERING RESEARCH LAB (ARMY) CHAMPAIGN IL
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This report documents development of procedures for determining fair and reasonable profit objectives on U.S. Army Corps of Engineers contracts. The report describes and critiques several procedures that were considered during the course of the study. Finally, the recommended procedures which evolved from these earlier proposals are described and evaluated. The report recommends that profit on Corps contracts be computed by evaluating certain factors that reflect the degree of risk associated with a particular contract and a factor that provides contractors a minimum profit. In addition, this report proposes a simpler graphical method for use on architect-engineer A-E contracts less than 100,000.
- Administration and Management
- Economics and Cost Analysis