PGI 215.404-974: Fee requirements for cost-plus-award-fee contracts.
R-DFARS PGI › Part 215 › PGI 215.404-974 · issued under 2026-O0048
Deviated Text
This text comes from the Word attachment to class deviation 2026-O0048, not from acquisition.gov. The deviation memo directs contracting officers to use it in place of the codified PGI. The source attachment linked below is authoritative.
Text
In developing a fee objective for cost-plus-award-fee contracts, the contracting officer must—
(a) Follow the guidance in FAR 16.402-4 and 216.402-4;
(b) Not use the weighted guidelines method or alternate structured approach;
(c) Apply the offset policy in 215.404-973(b)(2) for facilities capital cost of money, i.e., reduce the base fee by the amount of facilities capital cost of money; and
(d) Not complete a DD Form 1547.