CEMP-E/CECW-E
EI 01D010
1 September 1997
(7) Subcontracting. Jobs are to be
11-3. Civil Works Program Specific
weighted inversely proportional to the amount of
Requirements
subcontracting. Where 80 percent or more of the
work is to be subcontracted, the weighting is to be
a. Contract Award. Profit is not included in
0.03 and such weighting proportionately increased to
civil works Government estimates prepared for
0.12 where all work is performed by the contractor's
contract award. However, profit is included in all
own forces.
estimates prepared for programming of funds for
projects and for contract modifications.
d. A separate profit calculation should be
performed for the prime contractor and for each
b. Work for Others. Profit may be included for
subcontractor. When the subcontractor assumes the
projects funded by nonfederal users in work for
risk and responsibility for portions of the work, the
others.
prime contractor's profit rate on that work should be
decreased. As a general rule, profit is applied as a
11-4. HTRW Program Specific
percentage rate to the total of all costs required by the
Requirements
contract or modification scope. For early design stage
estimates, a rate of profit may be assumed based on
For HTRW Remedial Action work funded by civil
past historical experience.
works appropriations, the paragraph above governs
concerning profit. However, for HTRW Remedial
Action Work funded by HTRW or military
appropriations, all CWE' and Government estimates
s
are to include prime contractor profit.
11-2
Previous Page
