The CASG Profit Principles were first issued on 9th October 2017. The release of the CASG Profit Principles followed lengthy consultation within CASG and with industry.
The aim of the CASG Profit Principles is to provide guidance (not regulation) in the determination of profit levels in Defence contract pricing where market competition does not occur. This is achieved by setting a standard and equitable approach for the determination of a fair and reasonable profit for sole source procurements and to provide transparency and clarity to all stakeholders.
Additional objectives of the CASG Profit Principles are to incentivise and sustain a viable and profitable Defence Industry, and to achieve value for money in sole source procurements.
For more information or additional guidance on the CASG Profit Principles, please send an email to Defence Commercial and Financial Analysis at casg.cfa@defence.gov.au.