(a) Contracting officers may use methods other than those prescribed in 1515.404-470 for establishing profit or fee objectives under the following types of contracts and circumstances:

1. (1) Architect-engineering contracts;
2. (2) Personal service contracts;
3. (3) Management contracts, e.g., for maintenance or operation of Government facilities;
4. (4) Termination settlements;
5. (5) Services under labor-hour and time and material contracts which provide for payment on an hourly, daily, or monthly basis, and where the contractor's contribution constitutes the furnishing of personnel.
6. (6) Construction contracts; and
7. (7) Cost-plus-award-fee contracts.

(b) Generally, it is expected that such methods will:

1. (1) Provide the contracting officer with a technique that will ensure consideration of the relative value of the appropriate profit factors described under “Profit Factors,” in FAR 15.404-4(d) and
2. (2) Serve as a basis for documentation of the profit or fee objective.