Common use of Cost Analysis/Negotiation of Profit (2 CFR 200 Clause in Contracts

Cost Analysis/Negotiation of Profit (2 CFR 200. 323). For contracts over the SAT, Xxxxx ISD must negotiate profit as a separate element of the price for each contract in which there is no price competition, including solicitations that received only one viable response. In all cases, a cost analysis is to be performed by Xxxxx ISD. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.

Cost Analysis/Negotiation of Profit (2 CFR 200. 323). For contracts over the SAT, Xxxxx ISD must negotiate profit as a separate element of the price for each contract in which there is no price competition, including solicitations that received only one viable response. In all cases, a cost analysis is to be performed by Xxxxx ISDXXX. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.