DATA ITEM DESCRIPTION TITLE: CONTRACT PERFORMANCE REPORT (CPR) NUMBER: DI-MGMT-81466A APPROVAL DATE: 20050330 AMSC NUMBER: D7549 LIMITATION: DTIC APPLICABLE: GIDEP APPLICABLE: PREPARING ACTIVITY: OUSD(AT&L)ARA/AM(SO) APPLICABLE FORMS: DD Forms are available and shall be used to submit required formats as follows: CPR Format Work Breakdown Structure Organizational Categories Baseline StaffingExplanations and Problem Analyses DD Form Number 2734/12734/22734/32734/42734/5 Sample Format No. 1 2 3 4 5 USE/RELATIONSHIP: This report consists of five formats containing data formeasuring contractors' cost and schedule performance on Department of Defense(DoD) acquisition contracts. Format 1 (Sample Format 1) provides data tomeasure cost and schedule performance by product-oriented Work BreakdownStructure (WBS) elements, the hardware, software, and services the Governmentis buying. Format 2 (Sample Format 2) provides the same data by thecontractor's organization (functional or Integrated Product Team (IPT) structure). Format 3 (Sample Format 3) provides the budget baseline planagainst which performance is measured. Format 4 (Sample Format 4) providesstaffing forecasts for correlation with the budget plan and cost estimates. Format 5 (Sample Format 5) is a narrative report used to explain significantcost and schedule variances and other identified contract problems and topics. CPR data shall be used by DoD system managers to: (1) integrate cost andschedule performance data with technical performance measures, (2) identifythe magnitude and impact of actual and potential problem areas causingsignificant cost and schedule variances, and (3) provide valid, timely programstatus information to higher management. The CPR is a management report. It provides timely, reliable summary-leveldata with which to assess current and projected contract performance. The CPR's primary value to the Government is its ability to reflect currentcontract status and reasonably project future program performance. It is important that the CPR be as accurate as possible so it may be used for itsintended purpose, which is to facilitate informed, timely decisions. It will be used by the DoD component staff, including program managers, engineers, cost estimators, and financial management personnel, to confirm, quantify, andtrack known or emerging contract problems and serve as a basis forcommunicating with the contractor. The CPR data shall accurately reflect howwork is being planned, performed, and measured and shall be consistent withthe actual contract status. a. This Data Item Description (DID) contains the format and contentpreparation instructions for the data product generated by the specific anddiscrete task requirements as delineated in the contract. b. This DID shall be used in conjunction with the Integrated Master Schedule(IMS) DID, DI-MGMT-81650. This DID may be used in conjunction with theContract Funds Status Report (CFSR) DID, DI-MGMT-81468, the Contract WorkBreakdown Structure (CWBS) DID, DI-MGMT-81334A, the Cost Data Summary ReportDID, DI-FNCL-81565A, and the Functional Cost-Hour and Progress Curve Report Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A DID, DI-FNCL-81566A. The same WBS shall be utilized for the Integrated MasterPlan (IMP), IMS, CPR, and Contractor Cost Data Report (CCDR) as applicable. c. The CPR shall be used to obtain cost and schedule performance informationon contracts requiring compliance with the American National StandardsInstitute/Electronic Industries Alliance Standard 748 (ANSI/EIA-748), EarnedValue Management Systems (EVMS) (current version in effect at time of contractaward). Refer to the Federal Acquisition Regulation (FAR) or Defense FederalAcquisition Regulation Supplement (DFARS) clause on contract. The CPR data elements shall reflect the output of the contractor's ANSI/EIA-748 compliantintegrated management system. d. The CPR shall be required no less frequently than monthly. All formats shall be submitted to the procuring activity no later than 12 working daysfollowing the contractor’s accounting period cutoff date. This requirementmay be tailored through contract negotiations to allow submission as late as17 working days, provided that the contractor and Government agree thatprogram complexity and integration of subcontractor and vendor performancedata warrant additional time and will yield more accurate performance. Reports may reflect data either as of the end of the calendar month or as ofthe contractor's accounting period cutoff date, provided it is consistent withthe IMS. Formats 2, 3, and 4 may be submitted on a less frequent basis insome cases. Refer to the Earned Value Management Implementation Guide (EVMIG) for guidance on tailoring reporting. (Note: Contractors may elect to attachsubcontractor Format 5 reporting and cross reference this analysis in theFormat 5 reporting submitted to the Government to gain time efficiencies andmeet submission dates.) e. Unless otherwise provided in the contract, data reported in the CPR shallpertain to all authorized contract work, including both priced and unpricedeffort. Refer to the EVMIG for guidance on tailoring reporting. f. Submission of Format 1 using a product-oriented WBS in accordance with theWBS Handbook, MIL-HDBK-881, and the CWBS DID, DI-MGMT-81334A, is mandatory. (Note: For contracts that require CCDRs, the CWBS shall be developed, approved, and maintained in accordance with DoD 5000.4-M-1, Cost and SoftwareData Reporting Manual, and the CWBS DID.) Certain aspects of the report aresubject to negotiation between the Government and the contractor, such as: f.l The level of detail to be reported in Format 1 normally will be at levelthree of the CWBS, but lower levels may be specified for high-cost or high- risk items. The Government and the contractor shall periodically review andadjust as necessary CWBS reporting levels on Format 1 to ensure they continueto provide appropriate visibility without requiring excessive information. If there is a significant problem at a lower level, detailed reporting for thatCWBS element may be required until the problem is resolved. f.2 Formats 1 and 5 are mandatory in all cases. Formats 2, 3, and 4 areoptional in some cases. Refer to the EVMIG for guidance on tailoringreporting. f.3 Variance analysis thresholds which, if exceeded, require problem analysisand narrative explanations in Format 5. If the contract does not specifyvariance analysis thresholds, the contractor shall provide appropriatevariance analyses. (See 2.6.3 below.) Variance analysis thresholds shall bereviewed periodically and adjusted as necessary to ensure they continue toprovide appropriate visibility. 2 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A f.4 If the organizational categories for Format 4 are different from Format2, the Government may request that different organizational categories be usedfor reporting staffing in Format 4 instead of those used in Format 2. If so, the Government and the contractor shall negotiate the Format 4 categories. If required, the Format 2 categories shall reflect the contractor's internalorganization being used to execute the contract. g. Subject to f., the CPR Contract Data Requirements List (CDRL) is subjectto tailoring. Requiring more information in the CPR CDRL than specified inthis DID is contrary to DoD policy. All negotiated reporting provisions shallbe specified in the contract. Refer to the EVMIG for guidance on tailoringreporting. REQUIREMENTS: 1. Format. Use the relevant DD Forms as listed above. All formats shall be submitted electronically in accordance with the following requirements. All formats shall be in a readable digital format (e.g., pdf files are notacceptable). The American National Standards Institute (ANSI) X12 standard(839 transaction set), the United Nations Electronic Data Interchange forAdministration, Commerce and Transport (UN/EDIFACT) standard (PROCST message), or the XML equivalent shall be used to submit data electronically to theprocuring activity. Contractor formats may be substituted whenever theycontain all of the required data elements at the specified reporting levelsand are compliant with the X12 standard, XML schema, or equivalent. On-line access to the data may be provided to augment formal CPR submission. (Note: Until the ANSI X12/XML standards are redefined to incorporate the changes tothe forms, the new data elements shall be reported in Format 5.) 2. Content. The CPR shall contain the following: 2.1 Heading Information - Formats 1 - 5. Preparation instructions forHeading Information (Blocks 1 through 4) apply to Formats 1 through 5. 2.1.1 Contractor. Enter in Block 1.a the contractor's name and division (ifapplicable). Enter in Block 1.b the facility location and mailing address ofthe reporting contractor. 2.1.2 Contract. Enter the contract name in Block 2.a, the contract number(and the applicable Contract Line Item Number(s) (CLIN(s)) in Block 2.b, thecontract type in Block 2.c, and the contract share ratio (if applicable) inBlock 2.d. 2.1.3 Program. Enter in Block 3.a the program name, number, acronym, type, model, and series, or other designation of the prime item(s) purchased underthe contract. Indicate the program phase (development, production, etc.) inBlock 3.b. Indicate whether the contractor’s EVMS has been accepted by theGovernment and the date of the acceptance. 2.1.4 Report Period. Enter the beginning date in Block 4.a and the endingdate in Block 4.b of the period covered by the report. 2.1.5 Security Classification. Enter the appropriate security classificationat the top and bottom of each page. 2.1.6 Dollars in _________. If reported dollar amounts are in thousands, millions, or billions, enter the factor at the top of each page. 3 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A 2.2 Format 1 - Work Breakdown Structure. 2.2.1 Contract Data. 2.2.1.1 Quantity. Enter in Block 5.a the number of principal items to beprocured on this contract. 2.2.1.2 Negotiated Cost. Enter in Block 5.b the dollar value (excluding feeor profit) on which contractual agreement has been reached as of the cutoffdate of the report. For an incentive contract, enter the definitized contracttarget cost. Amounts for changes shall not be included in this item untilthey have been priced and incorporated in the contract through contract changeorder or supplemental agreement. For a cost plus fixed fee, award fee, orincentive fee contract, enter the estimated cost negotiated. Changes to theestimated cost shall consist only of estimated amounts for changes in thecontract scope of work, not for cost growth ("overrun") above the originalestimated cost. 2.2.1.3 Estimated Cost of Authorized, Unpriced Work. Enter in Block 5.c the amount (excluding fee or profit) estimated for that work for which writtenauthorization has been received, but for which definitized contract priceshave not been incorporated in the contract through contract change order orsupplemental agreement. 2.2.1.4 Target Profit/Fee. Enter in Block 5.d the fee or percentage ofprofit that shall apply if the negotiated cost of the contract is met. (See 2.2.1.2 above.) 2.2.1.5 Target Price. Enter in Block 5.e the target price (negotiatedcontract cost plus profit/fee) applicable to the definitized contract effort. 2.2.1.6 Estimated Price. Based on the most likely estimate of cost atcompletion for all authorized contract work and the appropriate profit/fee, incentive, and cost sharing provisions, enter in Block 5.f the estimated finalcontract price (total estimated cost to the Government). This number shall be based on the most likely management EAC in Block 6.c.1 and normally willchange whenever the management estimate or the contract is revised. 2.2.1.7 Contract Ceiling. Enter in Block 5.g the contract ceiling priceapplicable to the definitized effort. 2.2.1.8 Estimated Contract Ceiling. Enter in Block 5.h the estimated ceilingprice applicable to all authorized contract effort including both definitizedand undefinitized effort. 2.2.1.9 Over Target Baseline/Over Target Schedule. Enter in Block 5.i the date the last over target baseline or over target schedule was implemented (ifapplicable). 2.2.2 Estimated Cost at Completion. These blocks shall present thecontractor's range of estimated costs at completion. The range of estimatesis intended to allow contractor management flexibility to express possiblecost outcomes. Contractors shall provide the most accurate Estimates atCompletion (EACs) possible through program-level assessments of factors thatmay affect the cost, schedule, or technical outcome of the contract. Such program-level assessments shall include consideration of known or anticipatedrisk areas, and planned risk reductions or cost containment measures. EACs shall be reported without regard to contract ceiling. 4 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A 2.2.2.1 Management Estimate at Completion - Best Case. Enter in Block 6.a.1 the contractor's best case EAC. The best case estimate is the one that results in the lowest cost to the Government. This estimate shall be based on the outcome of the most favorable set of circumstances. If this estimate is different from the most likely EAC (Block 6.c.1), the assumptions, conditions, and methodology underlying this estimate shall be explained briefly in Format 5. This estimate is for informational purposes only; it is not an officialcompany estimate. There is no requirement for the contractor to prepare andmaintain backup data beyond the explanation provided in Format 5. 2.2.2.2 Management Estimate at Completion - Worst Case. Enter in Block 6.b.1 the contractor's worst case EAC. The worst case estimate is the one that results in the highest cost to the Government. This estimate shall be based on the outcome of the least favorable set of circumstances. If this estimate is different from the most likely EAC (Block 6.c.1), the assumptions, conditions, and methodology underlying this estimate shall be explainedbriefly in Format 5. This estimate is for informational purposes only; it isnot an official company estimate. There is no requirement for the contractorto prepare and maintain backup data beyond the explanation provided in Format 5. 2.2.2.3 Management Estimate at Completion - Most Likely. Enter in Block 6.c.1 the contractor's most likely EAC. This estimate is the contractor's official contract EAC and, as such, takes precedence over the estimatespresented in Column (15) of Formats 1 and 2 and Blocks 6.a.1 and 6.b.1. This EAC is the value that the contractor's management believes is the most likelyoutcome based on a knowledgeable estimate of all authorized work, known risks, and probable future conditions. This value need not agree with the total ofColumn (15) (Block 8.e). However, any difference shall be explained in Format5 in such terms as risk, use of Management Reserve (MR), or higher managementknowledge of current or future contract conditions. The assumptions, conditions, and methodology underlying this estimate shall be explainedbriefly in Format 5. This EAC need not agree with EACs contained in thecontractor's internal data, but must be reconcilable to them. The most likelyEAC shall also be reconcilable to the contractor's latest statement of funds required as reported in the CFSR, or its equivalent, if this report is acontractual requirement. 2.2.2.4 Contract Budget Base. Enter in Block 6.c.2 the total of negotiatedcost (Block 5.b) and estimated cost of authorized, unpriced work (Block 5.c). 2.2.2.5 Variance. Enter in Block 6.c.3 the Contract Budget Base (Block6.c.2) minus the most likely estimate at complete (Block 6.c.1). This value shall be explained in Format 5 according to applicable contractualrequirements. 2.2.3 Authorized Contractor Representative. Enter in Block 7.a the name of the authorized person (program manager or designee) signing the report. Enter that person's title in Block 7.b. The authorized person shall sign in Block 7.c. Enter the date signed in Block 7.d. Electronic signatures areencouraged. 2.2.4 Performance Data. 2.2.4.1 Column (1) - Work Breakdown Structure Element. Enter in Column (1) of Block 8.a the noun description of the CWBS items for which cost informationis being reported. CWBS elements and levels reported shall be those specifiedin the contract. (See f.1 above.) 5 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A 2.2.4.2 Cost of Money. Enter in Columns (2) through (16) of Block 8.b theFacilities Capital Cost of Money applicable to the contract. 2.2.4.3 General and Administrative. Enter in Columns (2) through (16) ofBlock 8.c the appropriate General and Administrative (G&A) costs. If G&A costs have not been included in the CWBS costs reported in Block 8.a above, G&A shall be shown as an add entry in Block 8.a. If G&A costs have been included in the CWBS costs reported in Block 8.a above, G&A shall be shown asa non-add entry in Block 8.c with an appropriate notation to that effect. For contracts that require CCDRs, contractors may also have to submit separatecosts without G&A for the CWBS elements reported in Block 8.a on an exceptionbasis if the Government specifies such a requirement in the CDRL. If a G&A classification is not used, no entry shall be made other than an appropriatenotation to that effect. 2.2.4.4 Undistributed Budget. Enter the amount of budget applicable tocontract effort that has not yet been identified to CWBS elements at or belowthe reporting level. For example, if contract changes were authorized late inthe reporting period, they should have received a total budget; however, assignment of work and allocation of budgets to individual CWBS elements maynot have been accomplished as of the contractor’s accounting period cutoffdate. Budgets that can be identified to CWBS elements at or below thespecified reporting level shall be included in the total budgets shown for theCWBS elements in Block 8.a and shall not be shown as Undistributed Budget(UB). Enter in Column (15) of Block 8.d the EAC for the scope of workrepresented by the UB in Column (14) of Block 8.d. Enter in Column (16) ofBlock 8.d the variance, if any, and fully explain it in Format 5. The reason(s) for UB shall be fully explained in Format 5. 2.2.4.4.1 Use of Undistributed Budget. UB is used to accommodate temporarysituations where time constraints prevent adequate budget planning or wherecontract effort can only be defined in very general terms. UB shall not be used as a substitute for adequate contract planning. Formal budgets shall beallocated to contract effort and responsible organizations at the earliestpossible time, preferably within the next reporting period. 2.2.4.5 Subtotal (Performance Measurement Baseline). In Columns (2) through (16) of Blocks 8.a through 8.e, enter the sum of the costs and budgets fordirect, indirect, cost of money, and G&A. This subtotal represents thedollars in the allocated budget (less MR), which is the PerformanceMeasurement Baseline (PMB) against which performance is measured. 2.2.4.6 Management Reserve. MR is an amount of the overall contract budgetwithheld for management control purposes and is held for program unknowns(realized risks on authorized work scope). Reserve is held for future needs and shall not be used to offset cumulative cost variances. It shall not be eliminated from contract prices by the Government during subsequentnegotiations nor used to absorb the cost of contract changes. In Column (14) of Block 8.f enter the total amount of budget identified as MR as of the endof the current reporting period. The amounts shown as MR in Formats 1, 2, and3 should agree. Amounts of MR applied to CWBS elements during the reportingperiod shall be listed in Block 6.b of Format 3 and explained in Format 5. 2.2.4.6.1 Negative Management Reserve. Negative entries shall not be made inManagement Reserve (Column (14) of Block 8.f). There is no such thing as"negative MR." If the contract is budgeted in excess of the Contract BudgetBase (the negotiated contract cost plus the estimated cost for authorized, unpriced work), the provisions applicable to formal reprogramming and theinstructions in paragraphs 2.2.5.1, 2.2.6.6, 2.2.6.7, and 2.4.1.7 apply. 6 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A 2.2.4.7 Total. Enter the sum of all direct, indirect, cost of money, and G&Acosts, and UB and MR (if applicable) in Columns (2) through (14) of Block 8.g. The Total lines of Format 1 (Block 8.g) and Format 2 (Block 5.g) should agree. The total of Column (14), Block 8.g, should equal the Total Allocated Budgetshown in Block 5.f on Format 3. 2.2.5 Reconciliation to Contract Budget Base. 2.2.5.1 Formal Reprogramming. In exceptional cases, the contractor mayestablish performance measurement budgets that exceed the Contract BudgetBase. Acceptance of the new baseline in excess of the Contract Budget Basewill be predicated on Government approval. This process is called formalreprogramming. The contractor and the Government shall agree on how theresults of a formal reprogramming will be reported in the CPR before theformal reprogramming is initiated. This agreement and any other pertinentdetails on the reporting of the formal reprogramming shall be included inFormat 5. Blocks 9.a and 9.b are used to reconcile the higher performancemeasurement budgets, also called an "over target baseline," to the ContractBudget Base. (See 2.2.6.6, 2.2.6.7, 2.4.1.7, and 2.6.5 below for moreinformation on reporting over target baselines (Formal Reprogramming).) 2.2.5.2 Variance Adjustment. In a formal reprogramming (over targetbaseline), the contractor may: (1) apply the additional budget to completedwork, thereby eliminating some or all of the existing cost or schedulevariances, (2) apply the additional budget to remaining work, (3) apply someof the additional budget to completed work and some to remaining work, and/or (4) apply some of the additional budget to MR. If the contractor uses a portion of the additional budget to eliminate variances applicable tocompleted work, the total adjustments made to the cost and schedule variancesshall be shown in Columns (10) and (11) of Block 9.a. The total cost variance adjustment entered in Column (11) of Block 9.a should be the sum of theindividual cost variance adjustments shown in Column (12) of Block 8.g. 2.2.5.3 Total Contract Variance. In Columns (10) and (11) of Block 9.b, enter the sum of the cost and schedule variances shown on the Total line (Block 8.g) and on the Variance Adjustment line (Block 9.a). In Column (14) enter the Contract Budget Base from Block 6.c.2. In Column (15) enter themanagement EAC from Block 6.c.1. In Column (16) of Block 9.b enter thedifference between Columns (14) and (15) of Block 9.b. 2.2.6 Columns (2) Through (16). When compliance with the ANSI/EIA-748(current version in effect at time of contract award) is contractuallyrequired, the data in Columns (2) through (16) shall reflect the output of thecontractor's ANSI/EIA-748 compliant integrated management system. 2.2.6.1 Column (2) and Column (7) - Budgeted Cost - Work Scheduled. For the time period indicated, enter the Budgeted Cost for Work Scheduled (BCWS) inthese columns. 2.2.6.2 Column (3) and Column (8) - Budgeted Cost - Work Performed. For the time period indicated, enter the Budgeted Cost for Work Performed (BCWP) inthese columns. 2.2.6.3 Column (4) and Column (9) - Actual Cost - Work Performed. For the time period indicated, enter the Actual Cost of Work Performed (ACWP) withoutregard to ceiling. In all cases, costs and budgets shall be reported on acomparable basis. 7 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A 2.2.6.4 Column (5) and Column (10) - Variance – Schedule (i.e., accomplishment). For the time period indicated, these columns reflect thedifferences between BCWS and BCWP. For the current period column, Column (5) (schedule variance) is derived by subtracting Column (2) (BCWS) from Column (3) (BCWP). For the cumulative to date column, Column (10) (schedulevariance) is derived by subtracting Column (7) (BCWS) from Column (8) (BCWP). A positive number in Column (5) and Column (10) indicates a favorablevariance. A negative number (indicated by parentheses) indicates anunfavorable variance. Significant variances as specified in the contractshall be fully explained in Format 5. If the contract does not specifyvariance analysis thresholds, the contractor shall provide appropriatevariance analyses. (See 2.6.3 below.) 2.2.6.5 Column (6) and Column (11) - Variance - Cost. For the time periodindicated, these columns reflect the difference between BCWP and ACWP. For the current period column, Column (6) (cost variance) is derived bysubtracting Column (4) (ACWP) from Column (3) (BCWP). For the cumulative to date column, Column (11) (cost variance) is derived by subtracting Column (9) (ACWP) from Column (8) (BCWP). A positive value indicates a favorablevariance. A negative value (indicated by parentheses) indicates anunfavorable variance. Significant variances as specified in the contractshall be fully explained in Format 5. If the contract does not specifyvariance analysis thresholds, the contractor shall provide appropriatevariance analyses. (See 2.6.3 below.) 2.2.6.6 Column (12a) and Column (12b) Reprogramming Adjustments - CostVariance and Schedule Variance. Formal reprogramming (over target baseline) results in budget allocations in excess of the Contract Budget Base and, insome instances, adjustments to previously reported variances. If previouslyreported variances are being adjusted, the adjustment applicable to eachreporting line item affected shall be entered in Column (12a) if for a costvariance and Column (12b) if for a schedule variance. The total of Column (12a) and Column (12b) should equal the amount shown on the VarianceAdjustment line (Block 9.a) in Column (10) and Column (11). 2.2.6.7 Column (13) Reprogramming Adjustments - Budget. Enter the total amounts added to the budget for each reporting line item as the result offormal reprogramming (over target baseline). The amounts shown shall consist of the sum of the budgets used to adjust cost variances (Column (12)) plus theadditional budget added to the CWBS element for remaining work. Enter the amount of budget added to MR in the space provided on the Management Reserveline (Block 8.f of Column (13)). The total of Column (13) should equal thebudget amount by which the Total Allocated Budget exceeds the Contract BudgetBase as shown in Block 5.g of Format 3. An explanation of the reprogrammingshall be provided in Format 5. 2.2.6.7.1 Formal Reprogramming Reporting. Columns (12) and (13) are intendedfor use only in situations involving formal reprogramming (over targetbaseline). Internal replanning actions within the Contract Budget Base do notrequire entries in these columns. Where contractors are submitting CPR datadirectly from automated systems, the addition of Columns (12) and (13) asshown may not be practical due to computer reprogramming problems or spacelimitations. In such cases, the information shall be provided in Format 5. Contractors shall not be required to abandon or modify existing automatedreporting systems to include Columns (12) and (13) if significant costs willbe associated with such change. Nor shall contractors be required to preparethe report manually solely to include this information. 8 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A 2.2.6.7.2. Formal Reprogramming Timeliness. Formal reprogramming (overtarget baseline) can be a significant undertaking that may require more than amonth to implement. To preclude a disruption of management visibility causedby a reporting hiatus, formal reprogramming shall be implementedexpeditiously. If a reporting hiatus is needed, the contractor and theGovernment shall agree on the date and duration of the hiatus before theformal reprogramming is initiated. 2.2.6.8 Column (14) - At Completion - Budgeted. Enter the budgeted cost atcompletion for the items listed in Column (1). This entry shall consist ofthe sum of the original budgets plus or minus budget changes resulting fromcontract changes, internal replanning, and application of MR. The total (Block 8.g) should equal the Total Allocated Budget shown in Block 5.f onFormat 3. 2.2.6.9 Column (15) - At Completion - Estimated. Enter the latest revised estimate of cost at completion including estimated overrun/underrun for allauthorized work. If the subtotal (Block 8.e) does not agree with the mostlikely management EAC (Block 6.c.1), the difference shall be explained inFormat 5. (See 2.2.2.3 above.) 2.2.6.10 Column (16) - At Completion - Variance. Enter the difference between the Budgeted - At Completion (Column (14)) and the Estimated - AtCompletion (Column (15)) by subtracting Column (15) from Column (14). A negative value (indicated by parentheses) reflects an unfavorable variance. Significant variances as specified in the contract shall be fully explained inFormat 5. If the contract does not specify variance analysis thresholds, thecontractor shall provide appropriate variance analyses. (See 2.6.3 below.) 2.3 Format 2 - Organizational Categories. 2.3.1 Performance Data. 2.3.1.1 Column (1) - Organizational Category. In Block 5.a list the organizational categories that reflect the contractor's internal managementstructure. This format shall be used to collect organizational costinformation at the total contract level for organizational elements ratherthan for individual CWBS elements. This column shall also identify each majorsubcontractor as defined in the contract. The individual subcontractor line shall reconcile with the cost to the prime (includes subcontractor fee, MR, UB, G&A, cost of money, etc.) or shall track directly with the subcontractorsubmittal consistent with the company/program documented process forsubcontract integration. The process for subcontract integration shall beexplained in Format 5. This column shall also identify each majorsubcontractor and each major vendor separately as an add item. (Note: The separation of subcontractor efforts is for reporting purposes and not intendedto impact how contracts are managed.) Except for material included in the additem for each major subcontractor or major vendor, the column shall alsoidentify material separately as an add item. The level of detail to be reported normally will be limited to the organizational level immediatelyunder the operating head of the facility. The contractor may report thisinformation according to its own internal management structure. If the contractor is organized by product teams, this format may not be neededbecause it may resemble Format 1. 2.3.1.2 Cost of Money. Enter in Columns (2) through (16) of Block 5.b theFacilities Capital Cost of Money applicable to the contract. 9 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A 2.3.1.3 General and Administrative. Enter in Columns (2) through (16) ofBlock 5.c the appropriate G&A costs. If G&A costs have not been included in the CWBS costs reported in Block 5.a above, G&A shall be shown as an add entryin Block 5.a. If G&A costs have been included in the CWBS costs reported inBlock 5.a above, G&A shall be shown as a non-add entry in Block 5.c with anappropriate notation to that effect. If a G&A classification is not used, noentry shall be made other than an appropriate notation to that effect. (See 2.2.4.3 above.) 2.3.1.4 Undistributed Budget. Enter in Column (14) of Block 5.d the budgetapplicable to contract effort that cannot be planned in sufficient detail tobe assigned to a responsible organizational area at the reporting level. The amount shown on this format may exceed the amount shown as UB on Format 1 ifbudget is identified to a task at or below the CWBS reporting level butorganizational identification has not been made; or may be less than theamount on Format 1 where budgets have been assigned to organizations but notto CWBS elements. Enter in Column (15) of Block 5.d the EAC for the scope ofwork represented by the UB in Column (14) of Block 5.d. Enter in Column (16) of Block 5.d the variance, if any, and fully explain it in Format 5. (See 2.2.4.4 above.) 2.3.1.5 Subtotal (Performance Measurement Baseline). Enter the sum of the direct, indirect, cost of money, and G&A costs and budgets in Columns (2) through (16) of Blocks 5.a through 5.e. (See 2.2.4.5 above.) 2.3.1.6 Management Reserve. In Column (14) of Block 5.f enter the amount ofbudget identified as MR. The Management Reserve entry should agree with theamounts shown in Formats 1 and 3. (See 2.2.4.6 above.) 2.3.1.7 Total. Enter the sum of all direct, indirect, cost of money, and G&Acosts and budgets, UB, and MR (if applicable) in Columns (2) through (14) ofBlock 5.g. The totals on this page should equal the Total line on Format 1. The total of Column (14) should equal the Total Allocated Budget shown inBlock 5.f on Format 3. 2.3.2 Columns (2) Through (16). The instructions applicable to these columnsare the same as the instructions for corresponding columns on Format 1. (See 2.2.6 and 2.2.6.1 through 2.2.6.10 above.) 2.4 Format 3 - Baseline. 2.4.1 Contract Data. 2.4.1.1 Original Negotiated Cost. Enter in Block 5.a the dollar value (excluding fee or profit) negotiated in the original contract. For a cost plus fixed fee, incentive, or award fee contract, enter the estimated costnegotiated. For an incentive contract, enter the definitized contract targetcost. 2.4.1.2 Negotiated Contract Changes. Enter in Block 5.b the cumulative cost (excluding fee or profit) applicable to definitized contract changes that haveoccurred since the beginning of the contract. 2.4.1.3 Current Negotiated Cost. Enter in Block 5.c the sum of Blocks 5.a and 5.b. The amount shown should equal the current dollar value (excludingfee or profit) on which contractual agreement has been reached and should bethe same as the amount in Negotiated Cost (Block 5.b) on Format 1. 10 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A 2.4.1.4 Estimated Cost of Authorized, Unpriced Work. Enter in Block 5.d the estimated cost (excluding fee or profit) for contract changes for whichauthorization has been received from the contracting officer, but for whichcontract prices have not been incorporated in the contract, as shown in Block 5.c of Format 1. 2.4.1.5 Contract Budget Base. Enter in Block 5.e the sum of Blocks 5.c and 5.d. 2.4.1.6 Total Allocated Budget. Enter in Block 5.f the sum of all budgetsallocated to the performance of the contractual effort. The amount shown shall include all MR and UB. This amount should be the same as that shown on the Total line in Column (14) on Format 1 (Block 8.g) and Format 2 (Block5.g). 2.4.1.7 Difference. Enter in Block 5.g the difference between Blocks 5.e and 5.f. In most cases, the amounts shown in Blocks 5.e and 5.f will beidentical. If the amount shown in Block 5.f exceeds that shown in Block 5.e, it usually is an indication of a formal reprogramming (over target baseline). The difference shall be explained in Format 5 at the time the negative valueappears and subsequently for any changes in the difference between ContractBudget Base and the Total Allocated Budget. 2.4.1.8 Contract Start Date. Enter in Block 5.h the date the contractor was authorized to start work on the contract, regardless of the date of contractdefinitization. (Note: Long-lead procurement efforts authorized under priorcontracts are not to be considered.) 2.4.1.9 Contract Definitization Date. Enter in Block 5.i the date the contract was definitized. 2.4.1.10 Planned Completion Date. Enter in Block 5.j the completion date towhich the budgets allocated in the PMB have been planned. This date represents the planned completion of all significant effort on the contract. The cost associated with the schedule from which this date is taken is the Total Allocated Budget (Block 5.f of Format 3). 2.4.1.10.1 Performance Measurement Schedule Inconsistent With Contractual Schedule. In exceptional cases, the contractor may determine that theexisting contract schedule cannot be achieved and no longer represents areasonable basis for management control. With Government approval, thecontractor may rephase its performance measurement schedule to new dates thatexceed the contractual milestones, a condition known as "over targetschedule." These new dates are for performance measurement purposes only anddo not represent an agreement to modify the contract terms and conditions. 2.4.1.10.2 Over Target Schedule Agreement. The Government and the contractor shall agree on the new performance measurement schedule prior to reporting itin the CPR. The contractor shall provide pertinent information in Format 5 onany schedule milestones that are inconsistent with contractual milestones, beginning the month the schedule is implemented and each month thereafter. 2.4.1.10.3 Indicators of a Performance Measurement Schedule Inconsistent With the Contractual Schedule. Formal reprogramming or internal replanning mayresult in performance measurement milestones that are inconsistent with thecontractual milestones (Over Target Schedule). A difference between the planned completion date (Block 5.j) and the contract completion date (Block5.k) usually indicates that some or all of the performance measurementmilestones are inconsistent with the contractual milestones. 11 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A 2.4.1.11 Contract Completion Date. Enter in Block 5.k the contract scheduled completion date in accordance with the latest contract modification. The cost associated with the schedule from which this date is taken is the Contract Budget Base (Block 5.e of Format 3). 2.4.1.12 Estimated Completion Date. Enter in Block 5.l the contractor's latest revised estimated completion date. This date represents the estimatedcompletion of all significant effort on the contract. The cost associated with the schedule from which this date is taken is the “most likely” management EAC (Block 6.c.1 of Format 1). 2.4.2 Performance Data. 2.4.2.1 Column (1) - Performance Measurement Baseline (Beginning of Period). Enter in Block 6.a the time-phased PMB (including G&A) that existed at thebeginning of the current reporting period. Most of the entries on this line (e.g., for Columns (4) through (9)) are taken directly from the PMB (End ofPeriod) line on the previous report. For example, the number in Column (4) onthe PMB (End of Period) line from the last report becomes the number in Column (3) on the PMB (Beginning of Period) line on this report. The number in Column (5) (End of Period) last report becomes Column (4) (Beginning ofPeriod) on this report, etc. (if each of the two columns covers the samelength of time). 2.4.2.2 Baseline Changes. In Block 6.b, list all significant baselinechanges that have occurred during the reporting period. This listing shallinclude the contract changes and supplemental agreements authorized during thereporting period, allocations from MR and UB, and any significant rephasing ofbudgets. All significant authorized baseline changes shall be listed whetherpriced or unpriced. 2.4.2.3 Performance Measurement Baseline (End of Period). Enter in Block 6.c the time-phased PMB as it exists at the end of the reporting period. The difference between this line and the PMB (Beginning of Period) represents theeffects of all significant changes, including the authorized changes, allocations of MR made during the period, and changes to time phasing due tointernal replanning or formal reprogramming. The reasons for these changesshall be explained in Format 5. 2.4.2.4 Management Reserve. Enter in Block 7 the total amount of MR remaining as of the end of the reporting period. This value should agree withthe amounts shown as MR in Formats 1 and 2. 2.4.2.5 Total. Enter in Column (16) of Block 8 the sum of Column (16) ofBlock 6.c (PMB (End of Period)) and Column (16) of Block 7 (ManagementReserve). This amount should be the same as that shown on the Total line (Block 8.g) in Column (14) on Format 1. 2.4.3 Column (2) - BCWS - Cumulative To Date. On the PMB (Beginning ofPeriod) line (Block 6.a), enter the cumulative BCWS as of the first day of thereporting period. This should be the same number reported as BCWS - Cumulative To Date on the Total line (Column (7) of Block 8.g) of Format 1 ofthe previous CPR. On the PMB (End of Period) line (Block 6.c), enter thecumulative BCWS as of the last day of the reporting period. This should be the same number reported as BCWS - Cumulative to Date on the Total line(Column (7) of Block 8.g) of Format 1 for this CPR. 12 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A 2.4.4 Column (3) - BCWS For Report Period. On the PMB (Beginning of Period) line (Block 6.a), enter the BCWS planned for the reporting period. This should be the number in Column (4) on the PMB (End of Period) line (Block 6.c) on the previous CPR. 2.4.5 Columns (4) Through (14). Enter the names of each month for the contract period of performance in the headings of each of the Columns (4) through (9), and the names of the appropriate periods in the headings of eachof the Columns (10) through (14) of Block 6. Columns beyond (14) may be addedwhen necessary or desirable. In the PMB (Beginning of Period) line (Block6.a), enter the BCWS projection reported in Format 3 of the previous CPR asPMB (End of Period) (Block 6.c). In the PMB (End of Period) line (Block 6.c) of this report, enter the projected BCWS by month for the next six months andfor periodic increments (monthly, quarterly, or annually) thereafter for theremainder of the contract. The time phasing of each item listed in Column (1) of Block 6.b need not be shown in Columns (4) through (14). It is useful to show the time phasing of any baseline changes. (Note: For the purposes ofillustration, Sample Format 3 has Columns (4) through (14) for reporting BCWS. The actual number of columns will vary from contract to contract.) 2.4.6 Column (15) - Undistributed Budget. On the PMB (Beginning of Period) line (Block 6.a), enter the number from Column (15) on the PMB (End of Period) line (Block 6.c) from the previous CPR. On the PMB (End of Period) line, enter the UB shown in Column (14) of Block 8.d on Format 1 of this report. 2.4.7 Column (16) - Total Budget. On the PMB (Beginning of Period) line(Block 6.a) enter the number from Column (16) on the PMB (End of Period) line(Block 6.c) from the previous CPR. In the section where baseline changes thatoccurred during the period are listed (Column (1) of Block 6.b), enter theamount of each of the changes listed. On the PMB (End of Period) line (Block6.c), enter the sum of the amounts in the preceding columns on this line. On the Management Reserve line (Block 7), enter the amount of MR available at theend of the period. On the Total line (Block 8) enter the sum of the amountsin this column on the PMB (End of Period) line and the Management Reserveline. (Note: This should equal the amount in Block 5.f on this format andalso the amount of the Total line in Column (14), Block 8.g, of Format 1.) 2.5 Format 4 - Staffing. 2.5.1 Performance Data. For those organizational categories shown in Column (1) of Block 5, equivalent months shall be indicated for the current reportingperiod (Column (2)), cumulative through the current period (Column (3)), forecast to completion (Columns (4) through (14)), and at completion (Column(15)). Direct equivalent months shall be shown for each organizationalcategory for the contract. An equivalent month is defined as the effort equalto that of one person for one month. Values shall be reported in wholenumbers. (Note: Partial months, .5 and above, shall be rounded to 1; below.5 to 0.) When the Government and the contractor agree, staffing may bereported in equivalent days or hours. 2.5.1.1 Column (1) - Organizational Category. In Block 5, list theorganizational categories that reflect the contractor's internal managementstructure. Format 4 categories may differ from those reported in Format 2. If the Government needs different categories in Formats 2 and 4, the Format 4categories shall be addressed during negotiations. (See f.4 above.) 2.5.1.2 Total Direct. In Block 6, Columns (2) through (15), enter the sum ofall direct equivalent months for the organizational categories shown in Column(1). 13 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A 2.5.2 Column (2) - Actual - Current Period. Enter the actual equivalentmonths incurred during the current reporting period. 2.5.3 Column (3) - Actual End of Current Period (Cumulative). Enter the actual equivalent months incurred to date (cumulative) as of the end of thereporting period. 2.5.4 Columns (4) Through (14) - Forecast (Non-Cumulative). Enter the names of each month for the contract period of performance in the headings of eachof the Columns (4) through (9), and the names of the appropriate periods inthe headings of each of the Columns (10) through (14) of Block 5. Enter a staffing forecast by month for the next six months and for periodic increments(monthly, quarterly, or annually) thereafter for the remainder of thecontract. The staffing forecast shall be updated as part of the formal EACprocess followed by the contractor. The staffing forecast shall reflect thesame staffing estimate used as the basis for the EAC in Column (15) on bothFormat 1 and Format 2. (Note: For the purposes of illustration, SampleFormat 4 has Columns (4) through (14) for reporting staffing forecast. The actual number of columns will vary from contract to contract.) 2.5.5 Column (15) - Forecast at Completion. Enter the estimate of equivalentmonths necessary for the total contract in Column (15) by organizationalcategory. This estimate shall be consistent with the “most likely” managementEAC shown in Column (15) of Block 8.e of Format 1. Any significant change inthe total number of equivalent months at completion of the contract (i.e., Column (15) Total) shall be explained in Format 5. 2.6 Format 5 - Explanations and Problem Analyses. 2.6.1 General. Format 5, Explanations and Problem Analyses, is a narrativereport prepared to amplify and explain data in the other CPR formats. Format 5 shall normally address the following: (1) contractually required cost, schedule, and EAC variance analyses, (2) MR changes and usage, (3) UBcontents, (4) differences between the best case, worst case, and most likelymanagement EAC, if any, (5) the difference between the most likely managementEAC and the estimate in Block 8.e of Column (15), if any, (6) significantdifferences between beginning of period PMB time phasing and end of period PMBtime phasing in Format 3, (7) performance measurement milestones that areinconsistent with contractual milestones (Over Target Schedule), (8) formalreprogramming (over target baseline) implementation details, and (9) significant staffing estimate changes in Format 4. Any other topic relevantto contract cost, schedule, or technical performance may be addressed in thisformat. The date(s) of the Integrated Baseline Review(s) may also beaddressed in this format. Contractors may elect to attach subcontractorFormat 5 reporting and cross reference this analysis in the Format 5 reportingsubmitted to the Government to gain time efficiencies and meet submissiondates. 2.6.2 Total Contract. Provide a summary analysis that identifies significantproblems affecting performance. Indicate corrective actions required, including Government action where applicable. Significant changes since theprevious report shall be highlighted. Discuss any other issues affectingsuccessful attainment of contract cost, schedule, or technical objectives thatthe contractor deems significant or noteworthy. This section is brief, normally one page. 2.6.3 Cost and Schedule Variances. Explain all variances that exceedspecified variance thresholds. Explanations of variances shall clearly 14 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A identify the nature of the problem, significant reasons for cost or schedulevariance, effect on the immediate task, impact on the total contract, and thecorrective action taken or planned. Explanations of cost variances shallidentify amounts attributable to rate changes separately from amountsapplicable to hours worked; amounts attributable to material price changesseparately from amounts applicable to material usage; and amounts attributableto overhead rate changes separately from amounts applicable to overhead basechanges or changes in the overhead allocation basis. To reduce the volume of variance analysis explanations, the contractor may refer to a prior CPR'svariance analysis explanations if the explanation for the current CPR'svariance has not changed significantly. Explanations of schedule variancesand the impact on the contract shall be performed in parallel with theschedule analysis called out by the IMS DID. Accordingly, there is arequirement in b. above for the IMS DID, DI-MGMT-81650, to be used inconjunction with this DID. (See 2.2.6.4 and 2.2.6.5 above.) 2.6.3.1 Setting Variance Analysis Thresholds. In Format 5, the Governmentwill require only that amount of variance analysis that satisfies itsmanagement information needs. Excessive variance analysis is burdensome andcostly, and detracts from the CPR's usefulness, while too little informationis equally undesirable. 2.6.4 Other Analyses. In addition to variance explanations, the followinganalyses are mandatory: 2.6.4.1. Management Estimate at Completion. If the best or worst case management EACs differ from the most likely estimate (Column (1) of Block 6 ofFormat 1), a brief explanation of the difference shall be provided. Also, ifthe most likely management EAC differs from the total entered in Column (15) of Format 1 or 2, the difference shall be explained. The explanations shallfocus on such areas as a knowledgeable, realistic risk assessment; projecteduse of MR; estimate for UB; and higher management’s knowledge of current orfuture contract conditions. The assumptions, conditions, and methodologyunderlying all management EACs shall be explained. (See 2.2.2 to 2.2.2.3,2.2.2.5, 2.2.6.9, and 2.2.6.10 above.) 2.6.4.2 Undistributed Budget. Identify the effort to which the UB applies. Also, explain any variance between the UB and the estimate for UB in Formats 1and 2. (See 2.2.4.4 and 2.3.1.4 above.) 2.6.4.3 Management Reserve Changes. Identify the sources and uses of MRchanges during the reporting period. Identify the CWBS and organizationalelements to which MR is applied, and the reasons for its application. (See 2.2.4.6 above.) 2.6.4.4 Baseline Changes. Explain reasons for significant shifts in timephasing of the PMB shown on Format 3. (See 2.4.2.3 above.) 2.6.4.5 Staffing Level Changes. Explain significant changes in the totalstaffing EAC shown on Format 4. Also, explain reasons for significant shiftsin time phasing of planned staffing. (See 2.5.5 above.) 2.6.5 Formal Reprogramming (Over Target Baseline). If the difference shown in Block 5.g on Format 3 becomes a negative value or changes in value, provideinformation on the following: 2.6.5.1 Authorization. Procuring activity authorization for the baselinechange that resulted in negative value or change. 15 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use. DI-MGMT-81466A 2.6.5.2 Reason. A discussion of the reason(s) for the change. 2.6.5.3 CPR Reporting. A discussion of how the change affected CPR reporting(i.e., amount allocated to MR, adjustments to cost or schedule variances, etc.). (See 2.4.1.7, 2.2.5.1, and 2.2.6.7 above.) 2.6.5.4 Schedule. Indicate whether the contract schedule was retained for performance measurement or was replaced with a schedule that exceeds thecontractual schedule (Over Target Schedule). 2.6.6 Over Target Schedule. If a performance measurement schedule exceedingthe contractual schedule (Over Target Schedule) has been implemented, providea discussion of the pertinent information, such as authorization, reasons, andsignificant dates. (See 2.4.1.10.1 above.) END OF DI-MGMT-81466A 16 Source: http://www.assistdocs.com -- Downloaded: 2005-04-14T12:31Z Check the source to verify that this is the current version before use.