This text is not in eCFR or DITA. It is extracted from the .docx attachment for Class Deviation 2026-O0048, which directs contracting officers to use it in place of the codified PGI. The parsed text is a convenience layer; the .docx attachment is authoritative.
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.
Authoritative source
Issued as an attachment to the Office of the Secretary of Defense memorandum for Class Deviation 2026-O0048, signed July 22, 2026. Verify against the attachment before relying on this text.
- .docx attachment for Class Deviation 2026-O0048
- Class Deviation 2026-O0048 memorandum (PDF)
- Class Deviation 2026-O0048 on part52.dev
Codified PGI
No codified counterpart is tracked for PGI 215.404-974. This section exists only in the Class Deviation.