Accession Number:

ADA088925

Title:

The Wages of Risk: Determining Fair and Reasonable Profit Objectives.

Descriptive Note:

Final rept. for period ending FY79,

Corporate Author:

CONSTRUCTION ENGINEERING RESEARCH LAB (ARMY) CHAMPAIGN IL

Personal Author(s):

Report Date:

1980-08-01

Pagination or Media Count:

77.0

Abstract:

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.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE