Weighted Guidelines

1 Government Policy/FAR Requirements^[1]
2 Record of Weighted Guidelines Method Application - DD Form 1547^[2]
3 PGI 215.404-71 Weighted guidelines method.
4 PGI 215.404-71-4 Facilities capital employed.
5 PGI 215.404-76 Reporting profit and fee statistics - Contracting Officers
6 Weighted Guidelines - Tool/Form
7 Related Topics and Pages
8 References and Notes

Government Policy/FAR Requirements^[1]

Subject to the authorities in 1.301(c), agencies making noncompetitive contract awards over $100,000 totaling $50 million or more a year—

(i) Shall use a structured approach for determining the profit or fee objective in those acquisitions that require cost analysis; and

(ii) May prescribe specific exemptions for situations in which mandatory use of a structured approach would be clearly inappropriate.

(2) Agencies may use another agency’s structured approach.

When the price negotiation is based on cost analysis, contracting officers in agencies that have a structured approach shall use it to analyze profit. When not using a structured approach, contracting officers shall use Profit-Analysis Factors in developing profit or fee prenegotiation objectives.

Record of Weighted Guidelines Method Application - DD Form 1547^[2]

(1)The DD Form 1547—

(i)Provides a vehicle for performing the analysis necessary to develop a profit objective;

(ii)Provides a format for summarizing profit amounts subsequently negotiated as part of the contract price; and

(iii)Serves as the principal source document for reporting profit statistics to DoD's management information system.

(2)The military departments are responsible for establishing policies and procedures for feeding the DoD-wide management information system on profit and fee statistics (see PGI 215.404-76 (DFARS/PGI view)).

(3)The contracting officer shall—

(i)Use and prepare a DD Form 1547 whenever a structured approach to profit analysis is required by DFARS 215.404-4(b) (see DFARS 215.404-71, 215.404-72, and 215.404-73 for guidance on using the structured approaches). Administrative instructions for completing the form are in PGI 253.215-70 (DFARS/PGI view).

(ii)Ensure that the DD Form 1547 is accurately completed. The contracting officer is responsible for the correction of any errors detected by the management system auditing process.

PGI 215.404-71 Weighted guidelines method.

PGI 215.404-71-4 Facilities capital employed.

(c)Use of DD Form 1861 - Field pricing support.
- (i)The contracting officer may ask the ACO to complete the forms as part of field pricing support.
- (ii)When the Weighted Guidelines Method is used, completion of the DD Form 1861 requires information not included on the Form CASB-CMF, i.e., distribution percentages of land, building, and equipment for the business unit performing the contract. Choose the most practical method for obtaining this information, for example—

(A) Contract administration offices could obtain the information through the process used to establish factors for facilities capital cost of money or could establish advance agreements on distribution percentages for inclusion in field pricing reports;
(B) The corporate ACO could obtain distribution percentages; or
(C) The contracting officer could request the information through a solicitation provision.

PGI 215.404-76 Reporting profit and fee statistics - Contracting Officers

(1) Contracting officers in contracting offices that participate in the management information system for profit and fee statistics must send completed DD Forms 1547 on actions that exceed the cost or pricing data threshold, where the contracting officer used the weighted guidelines method, an alternate structured approach, or the modified weighted guidelines method, to their designated office within 30 days after contract award.

Use the automated system, Profit Weighted Guidelines and Application at https://www.wgl.wpafb.af.mil/wgl, as required by your department.

(3)When the contracting officer delegates negotiation of a contract action that exceeds the cost or pricing data threshold to another agency (e.g., to an ACO), that agency must ensure that a copy of the DD Form 1547 is provided to the delegating office for reporting purposes within 30 days after negotiation of the contract action.

(4)Contracting offices outside the United States and its outlying areas are exempt from reporting.

(5)Designated offices send a quarterly (non-cumulative) report of DD Form 1547 data to—

Washington Headquarters Services

Directorate for Information Operations and Reports (WHS/DIOR)

1215 Jefferson Davis Highway, Suite 1204

Arlington, VA 22202-4302

(6)In preparing and sending the quarterly report, designated offices—

- (i) Perform the necessary audits to ensure information accuracy;

- (ii) Do not enter classified information;

- (iii) Transmit the report using approved electronic means; and

- (iv) Send the reports not later than the 30th day after the close of the quarterly reporting periods.

(7) These reporting requirements have been assigned Report Control Symbol DD-AT&L(Q)1751.