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   <concept id="DFARS_215.404-74"
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      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">215.404-74</ph> Fee requirements for cost-plus-award-fee contracts.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p class="- topic/p ">In developing a fee objective for cost-plus-award-fee contracts, the contracting officer shall—</p>
         <p outputclass="List1" class="- topic/p ">(a)  Follow the guidance in FAR 16.405-2 and 
               <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="i1378423"
                  href="216.405-2.dita#DFARS_216.405-2">216.405-2</xref>
            ;</p>
         <p outputclass="List1" class="- topic/p ">(b)  Not use the weighted guidelines method or alternate structured approach;</p>
         <p outputclass="List1" class="- topic/p ">(c)  Apply the offset policy in 
               <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="i1378293"
                  href="215.404-73.dita#DFARS_215.404-73">215.404-73</xref>
            (b)(2) for facilities capital cost of money, i.e., reduce the base fee by the amount of facilities capital cost of money; and</p>
         <p outputclass="List1" class="- topic/p ">(d)  Not complete a DD Form 1547.</p>
      </conbody>
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