The assignment of a weight on the DOT F 4220.32 for this factor shall be based on the nature of these costs and how much they contribute to contract performance. The degree of cost risk is related to the selection of contract type. For example, if a portion of the risk has been shifted to the Government through cost-reimbursement, or other risk reducing measures, the weight assigned to this factor should be less than acquisitions where the contractor assumes most or all of the risk. B. Subcontracting program . The contractor's subcontracting program may have a significant impact on the contractor's acceptance of risk under a particular contract type.
Analysis is necessary to determine if real cost risk has been transferred to a subcontractor.
If this is the case, the contract cost risk weight assigned may be below the range that would normally be assigned. C. Definitization . For procurement actions that involve definitization of a letter contract, unpriced change orders, etc., where partial performance has occurred, evaluate the effect on total contract cost risk. If it is determined that the total amount of cost risk has been effectively reduced as a result of the partial performance, a lower weight may be appropriate. Form DOT F 4220.34, Contract Facilities Capital and Cost of Money , is used to determine the capital employed and cost of money amounts to be entered on the DOT F 4220.32 . A. Utilization .