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   <concept id="DFARS_215.404-72"
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      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">215.404-72</ph> Modified weighted guidelines method for nonprofit organizations other than FFRDCs.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p outputclass="List1" class="- topic/p ">(a)  <i class="+ topic/ph hi-d/i ">Definition</i>.  As used in this subpart, a nonprofit organization is a business entity—</p>
         <p outputclass="List2" class="- topic/p ">(1)  That operates exclusively for charitable, scientific, or educational purposes;</p>
         <p outputclass="List2" class="- topic/p ">(2)  Whose earnings do not benefit any private shareholder or individual;</p>
         <p outputclass="List2" class="- topic/p ">(3)  Whose activities do not involve influencing legislation or political campaigning for any candidate for public office; and</p>
         <p outputclass="List2" class="- topic/p ">(4)  That is exempted from Federal income taxation under section 501 of the Internal Revenue Code.</p>
         <p outputclass="List1" class="- topic/p ">(b)  For nonprofit organizations that are entities that have been identified by the Secretary of Defense or a Secretary of a Department as receiving sustaining support on a cost-plus-fixed-fee basis from a particular DoD department or agency, compute a fee objective for covered actions using the weighted guidelines method in 
               <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="i1378203"
                  href="215.404-71.dita#DFARS_215.404-71">215.404-71</xref>
            , with the following modifications:</p>
         <p outputclass="List2" class="- topic/p ">(1)  <i class="+ topic/ph hi-d/i ">Modifications to performance risk (Blocks 21-23 of the DD Form 1547).</i>
         </p>
         <p outputclass="List3" class="- topic/p ">(i)  If the contracting officer assigns a value from the standard designated range (see 
               <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="i1378203"
                  href="215.404-71.dita#DFARS_215.404-71">215.404-71</xref>
            -2(c)), reduce the fee objective by an amount equal to 1 percent of the costs in Block 20 of the DD Form 1547.  Show the net (reduced) amount on the DD Form 1547.</p>
         <p outputclass="List3" class="- topic/p ">(ii)  Do not assign a value from the technology incentive designated range.</p>
         <p outputclass="List2" class="- topic/p ">(2)  <i class="+ topic/ph hi-d/i ">Modifications to contract type risk (Block 24 of the DD Form 1547).</i>  Use a designated range of –1 percent to 0 percent instead of the values in 
               <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="i1378203"
                  href="215.404-71.dita#DFARS_215.404-71">215.404-71</xref>
            -3.  There is no normal value.</p>
         <p outputclass="List1" class="- topic/p ">(c)  For all other nonprofit organizations except FFRDCs, compute a fee objective for covered actions using the weighted guidelines method in 
               <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="i1378203"
                  href="215.404-71.dita#DFARS_215.404-71">215.404-71</xref>
            , modified as described in paragraph (b)(1) of this subsection.</p>
      </conbody>
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