243.204-70-6 Allowable profit.

When the final price of an unpriced change order 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 extent to which costs have been incurred prior to definitization of the contract action (see 215.404-71-3 (d) (2)). The risk assessment shall be documented in the contract file.