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FAR and DFARS › DFARS Part 215: Contracting by Negotiation › Subpart 215.4

DFARS 215.404-75 Fee requirements for FFRDCs.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells contracting officers how to handle fees for nonprofit Federally Funded Research and Development Centers (FFRDCs). It requires them to consider whether a fee is appropriate and, if so, to set the fee objective using DoD Instruction 5000.77, not the usual weighted guidelines or alternate structured approach.

Applies to: Contracting officers awarding contracts to nonprofit FFRDCs

What it requires

  • Consider whether any fee is appropriate, including the FFRDC's retained earnings, facilities capital acquisition plans, working capital funding, and provision for unreimbursed costs.
  • When a fee is appropriate, establish the fee objective in accordance with DoD Instruction 5000.77.
  • Do not use the weighted guidelines method or an alternate structured approach.

Key terms: FFRDC · fee · retained earnings · facilities capital acquisition plans · working capital funding

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

For nonprofit organizations that are FFRDCs, the contracting officer—

(a) Should consider whether any fee is appropriate. Considerations shall include the FFRDC's—

(1) Proportion of retained earnings (as established under generally accepted accounting methods) that relates to DoD contracted effort;

(2) Facilities capital acquisition plans;

(3) Working capital funding as assessed on operating cycle cash needs; and

(4) Provision for funding unreimbursed costs deemed ordinary and necessary to the FFRDC.

(b) Shall, when a fee is considered appropriate, establish the fee objective in accordance with FFRDC fee policies in the DoD Instruction 5000.77, DoD Federally Funded Research and Development Center Program.

(c) Shall not use the weighted guidelines method or an alternate structured approach.

Sections that refer to it

← 215.404-74 Fee requirements for cost-plus-award-fee contracts. · 215.406 Documentation. →

Rule changes for DFARS Part 215

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 215.404-75 Fee requirements for FFRDCs · SpendQuery