This post was originally published at Federal Pricing Group and has be syndicated here with permission from the author.
Years back, I recalled a DOE Contracting Officer for a “M&O” cost reimbursable type contract commenting to the prime that the two percent fee they were earning was very generous and that the contractor should be grateful. I was appalled and could remember saying to myself, “Who in their right mind would think 2 percent profit is acceptable?”. Was my opinion reasonable? Let’s look at six reasons “six R’s” for justifying higher profit on your next contract.