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   <concept id="DFARS_215.404-75"
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      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">215.404-75</ph> Fee requirements for FFRDCs.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p class="- topic/p ">For nonprofit organizations that are FFRDCs, the contracting officer—</p>
         <p class="- topic/p " outputclass="List1">(a)  Should consider whether any fee is appropriate.  Considerations shall include the FFRDC’s—</p>
         <p class="- topic/p " outputclass="List2">(1)  Proportion of retained earnings (as established under generally accepted accounting methods) that relates to DoD contracted effort;</p>
         <p class="- topic/p " outputclass="List2">(2)  Facilities capital acquisition plans;</p>
         <p class="- topic/p " outputclass="List2">(3)  Working capital funding as assessed on operating cycle cash needs; and</p>
         <p class="- topic/p " outputclass="List2">(4)  Provision for funding unreimbursed costs deemed ordinary and necessary to the FFRDC.</p>
         <p class="- topic/p " outputclass="List1"> (b) Shall, when a fee is considered appropriate, establish the fee objective in accordance with FFRDC fee policies in the <ph class="- topic/ph " rev="Revised November 17, 2023">DoD Instruction 5000.77, DoD Federally Funded Research and Development Center Program.</ph>
         </p>
         <p class="- topic/p " outputclass="List1">(c)  Shall not use the weighted guidelines method or an alternate structured approach.</p>
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