Section 550.305  Profit

a)         Only fair and reasonable profits may be paid to contractors.  "Fair and reasonable profits" are profits which are sufficient to attract proposers who possess talents and skills necessary to the accomplishment of project objectives and to stimulate efficient and expeditious completion of the project;

b)         For each contract in which there is no price competition or where price is based on cost analysis, any profit shall be negotiated as a separate element of price.  In such instances, profit shall be determined based on assumption of risk, contribution to total performance of the project and other relevant factors related to the project for which the contract is procured;

c)         Where the Agency receives two or more bids, profit included in a formally advertised, competitively bid, fixed price contract shall be considered reasonable.

d)         Off-the-shelf or catalog supplies are exempt from this section.