(b)(1)
(i)(a) The NASA structured approach for determining profit or fee objectives, described in 1815.404-471 shall be used to determine profit or fee objectives in the negotiation of contracts greater than or equal to $100,000 that use cost analysis and are:
(1) Awarded on the basis of other than full and open competition (see
FAR 6.3);
(2) Awarded under NASA Research Announcements (NRAs) and Announcements of Opportunity (AO’s); or
(3) Awarded under the Small Business Innovative Research (SBIR) or the Small Business Technology Transfer Research (STTR) programs.
(b) The rate calculated for the basic contract may only be used on actions under a negotiated contract when the conditions affecting profit or fee do not change.
(c) Although specific agreement on the applied weights or values for individual profit or fee factors shall not be attempted, the contracting officer may encourage the contractor to -
(1) Present the details of its proposed profit amounts in the structured approach format or similar structured approach; and
(2) Use the structured approach method in developing profit or fee objectives for negotiated subcontracts.
(ii) The use of the NASA structured approach for profit or fee is not required for:
(a) Architect-engineer contracts;
(b) Management contracts for operation and/or maintenance of Government facilities;
(c) Construction contracts;
(d) Contracts primarily requiring delivery of materials supplied by subcontractors;
(e) Termination settlements; and
(f) Contracts having unusual pricing situations when the procurement officer determines in writing that the structured approach is unsuitable.
(c)(2) Contracting officers shall document the profit or fee analysis in the contract file.
