Management Fees for Nonprofit DoD Contractors
Abstract
Establishment of the profit or management fee paid to a Department of Defense contractor is governed by the Department's weighted guidelines profit policy. The weighted guidelines are used primarily with profit-seeking firms, whose earnings are subject to tax. Consequently a downward adjustment of management fee is necessary for nonprofit organizations receiving such fees. A percentage adjustment is recommended; i.e., the weighted guidelines profit calculation would be multiplied by a percentage factor. The percentage factor should reflect the effective corporation tax rate. The report does not address the additional adjustment presently applied to fees for Federal Contract Research Centers.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 01, 1979
- Accession Number
- ADA078327
Entities
People
- Myron G. Myers
Organizations
- LMI