What is a reasonable range for profit/fee for Phase I?

Profit has typically been proposed and accepted at a rate between 6 and 10 percent. The profit proposed should be commensurate with Offeror’s assessment of risk. The profit proposed must be supported by narrative within the proposal. The narrative needs to state which cost elements profit/fee was applied to and why it is reasonable.

Please note: For Phase II and IIB awards issued as a cost-plus-fixed-fee type award, the maximum fee is set by statute at 15 percent.