For nonprofit organizations that are FFRDCs, the contracting officer—

1. (a) Should consider whether any fee is appropriate. Considerations shall include the FFRDC's—

   1. (1) Proportion of retained earnings (as established under generally accepted accounting methods) that relates to DoD contracted effort;
   2. (2) Facilities capital acquisition plans;
   3. (3) Working capital funding as assessed on operating cycle cash needs; and
   4. (4) Provision for funding unreimbursed costs deemed ordinary and necessary to the FFRDC.
2. (b) Shall, when a fee is considered appropriate, establish the fee objective in accordance with FFRDC fee policies in the DoD Instruction 5000.77, DoD Federally Funded Research and Development Center Program.
3. (c) Shall not use the weighted guidelines method or an alternate structured approach.

[63 FR 63800, Nov. 17, 1998, as amended at 88 FR 80466, Nov. 17, 2023]