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Federal regulations · Through 2026-08-25 · Newer source version available

48 CFR 1615.404-4: 1615.404-4 Profit.

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Where this section sits in the code
  1. Title 48—Federal Acquisition Regulations System
  2. CHAPTER 16—OFFICE OF PERSONNEL MANAGEMENT FEDERAL EMPLOYEES HEALTH BENEFITS ACQUISITION REGULATION
  3. SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES
  4. PART 1615—CONTRACTING BY NEGOTIATION
  5. Subpart 1615.4—Contract Pricing

(a) When the pricing of FEHB Program contracts is determined by cost analysis (experience-rated) or by a combination of cost and price analysis (community rated), OPM will determine a performance based percentage of the price using a weighted guidelines structured approach based on the profit analysis factors described in 1615.404-70. For experience-rated plans, OPM will use the performance based percentage so determined to develop the profit or fee prenegotiation objective, which will be the total profit (service charge) negotiated for the contract. For community-rated plans, OPM will use the performance based percentage so determined to develop an adjustment to net-to-carrier premiums, (performance adjustment) to be made during the first quarter of the following contract period.

(b) OPM will not guarantee a minimum service charge.

Collected 2026-08-27T02:26:29Z. Source file · JSON

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