48 CFR § 915.404-4770 - 915.404-4770 Alternative techniques.

---
identifier: "/us/cfr/t48/s915.404-4770"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 915.404-4770 - 915.404-4770   Alternative techniques."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "915.404-4770"
section_name: "915.404-4770   Alternative techniques."
chapter_number: 9
chapter_name: "DEPARTMENT OF ENERGY"
subchapter_number: "C"
subchapter_name: "CONTRACTING METHODS AND CONTRACT TYPES"
part_number: "915"
part_name: "CONTRACTING BY NEGOTIATION"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 7101  and 50 U.S.C. 2401"
regulatory_source: "63 FR 56851, Oct. 23, 1998, unless otherwise noted."
cfr_part: "915"
---


# 915.404-4770 915.404-4770   Alternative techniques.

(a) Profit or fees to be paid on construction contracts and construction management contracts shall be determined in accordance with the applicable profit/fee technique for such contracts set forth in 915.404-4800.

(b) Profit and fee to be paid on contracts under the threshold stated at 48 CFR 15.403-4(a)(1), not using the weighted guidelines, shall be judgmentally developed by the contracting officer by assigning individual dollar amounts to the factors appropriate to DOE profit considerations discussed in 915.404-4720(d).

(c) Contracts which require only delivery or furnishing of goods or services supplied by subcontractors shall include a fee or profit which, in the best judgment of the contracting officer, is appropriate. It would be expected that there would be a declining relationship of profit/fee dollars in relation to total costs. The higher the cost of subcontracts, for example, the lower the profit/fee ratio to these costs.

(d) Profit/Fee considerations in termination settlements are often a question of equity. They are a matter of negotiation. They should not, however, exceed what would have otherwise been payable under weighted guidelines had the termination not occurred.

[63 FR 56851, Oct. 23, 1998, as amended at 74 FR 36364, July 22, 2009; 76 FR 7693, Feb. 11, 2011. Redesignated and amended at 89 FR 89749, Nov. 13, 2024]