217.7404-6 Allowable profit.

When the final price of a UCA is negotiated after a substantial portion of the required performance has been completed, the head of the contracting activity shall ensure the profit allowed reflects-

(a)  Any reduced cost risk to the contractor for costs incurred during contract performance before negotiation of the final price;

(b)  The contractor's reduced cost risk for costs incurred during performance of the remainder of the contract; and

(c)  The requirements at 215.404-71-3(d)(2). The risk assessment shall be documented in the contract file.