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OPERATING STATUS
Decrements in a DCMA analysis would more properly be within the perview of that agency and is not directly addressed within the FAR/DFARs insofar as its allowability, percentage, or language of justification. Your policy and agency guidance would prevail. The actual proposal analysis guidance would be from FAR 15.404, DFARS part 15, and DFARS PGI 215.404-3. If these quotes are from a subcontractor then those FAR parts specify that the prime also has a responsibility to perform analysis to determine the cost are fair and reasonable and provide that substantiation to the PCO.
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