B-245032, Mar 9, 1992, 71 Comp.Gen. 310
B-245032: Mar 9, 1992
The Department's regulation prohibiting the payment of profits to for-profit organizations is superseded because the Administration's policy directive is mandated under the Small Business Innovation Development Act of 1982 and the provision of profits is a proper exercise of discretion by the agency charged by Congress to oversee the program. Awarding agencies are to provide for a reasonable fee or profit on SBIR funding agreements. " states that: "Attention is directed to 74.170. Even if the recipient is a for-profit organization. Profit is any amount in excess of allowable direct and indirect costs of the recipient.". Describing how cost principles should take into account the importance of providing "full and adequate renumeration [sic!" as implying that profits are prohibited.