Sign In
  • Question

    Weighted Guidelines recommends a specifc fee. Using this singular value, how can we formulate a negotiation range for discussing fee? For example, if WGL recommends a fixed fee of 6%, while the contractor proposal requests for a fixed fee of 8%, in the pre-business clearance document, can we arbitrarily request for authority to negotiate between the WGL recommended 6% plus/minus 1% (say)? Or is there a better, more "supportable" negotiation range that we can request for authority to negotiate within, knowing only a singluar WGL recommended fixed fee guidance?


    1. The NMCARS Anex 2  section 3 entitled "Pre-Negotiation Profit/Fee Analysis" requires you to include in your business clearance memorandum the following:

    a. A discussion of each contractor's proposed profit/fee rate

    b. Support pre-negotiation profit/fee rate with completed DD Form 1547 (DFARS 215.404-4(b)(1)) and discuss use of each assigned weight, or discuss applicable exemption.

    To accomplish your desire to develop a profit/fee rate for your optimistic, objective, and pessimistic negotiation positions is admirable and you would have to develop a weighted guidelines for each cost position derived from your technical evaluation. What would be required and you don't presently have is a technical evaluation that provides you optimistic, objective, and pessimistic positions on the contractor's proposed cost detail. The latter will allow you to develop 1 ea optimistic, objective, and pessimistic negotiation positions for which you could develop a weighted guideline for each. 

    However, please notice that par 1.b. above doesn't require but one DD Form 1547, not three. Please speak with your Contracting Officer about your goal of wanting to develop a range of profit/fee rates to take to the negotiation table that is objectively determined vice the subjective or - percentage from your objective rate.

    Open full Question Details
Bot Image