ABNORMAL FLUCTUATION WITH ECONOMY (AFIE) CLAUSE

A contractual clause to cover the Costs resulting from abnormal fluctuations in the Economy. See Escalation Clause.

ABSORPTION

The process of distributing indirect or Overhead Costs over any defined cost Base such as labor hours, labor dollars, material dollars or total cost dollars, so that, at the end of an Accounting Period, the Indirect Costs will be totally "absorbed".

ACCEPTABLE QUALITY LEVEL (AQL)

The maximum percent Defective (or the maximum number of Defects per hundred units) that, for purposes of sampling inspection, can be considered satisfactory as a process Average.

ACCEPTANCE

The act of an authorized representative of a customer, such as the Government, by which the customer, for itself, or as the agent of another, assumes ownership of existing identified supplies tendered, or approves specific services rendered, as partial or complete performance of the Contract on the part of the Contractor or Supplier.

ACCEPTANCE TEST

1) A test conducted by the customer or its authorized Agency to determine if an item of material or service complies with the terms of the Contract. 2) For the Government, the formal inspection, testing, and/or Analysis accomplished in accordance with specification to verify the performance and Adequacy of an item of supply at the time of its delivery and Acceptance by the Government. See Test and Evaluation.

ACCESSIBILITY

A measure of the relative ease of admission to the various areas of an item.

ACCESSORIAL COST (OR CHARGE)

Expenses charged as an addition to the sale price of material delivered, such as transportation, packing, crating, handling, loading, and unloading Costs.

ACCESSORY

1) An item which facilitates or enhances the operation of a basic item of equipment but which is not essential for its operation. 2) For the Government, an item used in conjunction with or to supplement an Assembly, unit or set, contributing to the Effectiveness thereof without extending or varying the basic function of the assembly, unit or set. An accessory may be used for testing, adjusting or calibrating purposes.

ACCOMMODATION SALE

The sale of a service, resource, knowledge, or Capability. Such work is not competitively solicited and is normally performed as a service by a company to an outside source other than principal customers.

ACCOUNT

A record, usually in the form required for double entry Bookkeeping, of transactions relating to a person, an item of property, an Asset, Liability, Capital, or Elements of Revenues, or funds for a given fiscal period. A summarized presentation of such transactions in a financial statement in ledger account form.

ACCOUNT BALANCE

The net excess of Debits over Credits in an Account, or vice versa described as "debit balance" or "credit balance" or in case of equality, "zero balance".

ACCOUNT NUMBER

A number used to designate general, subsidiary ledger, or overhead Accounts.

ACCOUNTABLE

Being answerable to management for the satisfactory discharge of assigned responsibility. Applies to performance in terms of Cost and accomplishments, as well as to responsibility for quantities of Cash or property entrusted to a custodian. Having the duty, when officially so designated, to render an Accounting for money or other property placed in one's custody.

ACCOUNTABLE OFFICER

A Government employee personally obligated to exercise due care and observe legal and administrative restrictions in custody of property, or for receipts, Disbursements, and balances of funds of which he has custody; or for certifying to the accuracy or legality of the basis on which disbursements are made.

ACCOUNTABLE SPECIAL TOOLS (EQUIPMENT)

The term "accountable special tools" is synonymous with the term "special tooling" and "special test equipment". Accountable special tools are made for and limited to the production and test of particular detail parts and assemblies under a specific Contract. See Tooling and Test Equipment.

ACCOUNTING

The classifying, recording, summarizing, reporting, verifying, analyzing, and interpreting the economic and financial Data of a Business.

ACCOUNTING CALENDAR

A calendar which sets forth the company fiscal year divided into l2 months, each of which contains either four or five weeks.

ACCOUNTING DOCUMENT

Any form or original record which evidences a financial or property transaction, (e.g., voucher, invoice, bill, Contract, receipt, order, requisition, or procurement directive, etc.)

ACCOUNTING PERIOD

A definite period of time (month, quarter, year) for which financial transactions are recorded. In Government, the accounting period may be fixed by legislative or other regulatory action. In Business, the accounting period may be fixed to coincide with natural annual seasonal Cycle of an enterprise. In any case, an arbitrary establishment that designates the date on which a set of accounting records will be closed. See Shop Calendar.

ACCOUNTING POLICY

A defined course of action in the Accounting area adopted or prescribed to be followed by those with the responsibility for the function.

ACCOUNTING PRINCIPLES

Fundamental or basic rules or laws of action, governing the policies and procedures relating to Accounting, and based upon desirable objectives for financial or economic Control and administration.

ACCOUNTING REPORT

A formal statement, with or without narrative or exposition, showing financial condition at a given time or the results of transactions or operations for a given period.

ACCOUNTING SYSTEM

An operating plan, including methods, procedures, and forms for classifying, recording, and summarizing financial Data for a given enterprise or undertaking.

ACCOUNTS PAYABLE

Amounts owed on open Account, i.e., materials and services received, wages earned, and fringe benefits unpaid.

ACCOUNTS RECEIVABLE

1) Amounts due from debtors on open Accounts. 2) Under appropriated funds, amounts due from debtors for reimbursements earned, or for appropriation refunds due.

ACCRUAL (METHOD OF) ACCOUNTING

The basis of Accounting whereby revenue is recognized when it is realized and when Expenses are recognized when incurred, without regard to time of receipt or payment of Cash. See Cash Basis of Accounting.

ACCRUED EXPENDITURES

Charges incurred for goods and services received and other Assets acquired, regardless of whether payment for the charges has been made.

ACQUISITION

A term used within the DoD to denote the aggregation of efforts to develop, produce and provide a weapon or other system to the user. The acquisition process includes the conceptualization, initiation, Design, Development, test, contracting, production, Deployment, and logistic support, modification, and Disposal of weapon and other systems, supplies, or services (including construction) required to satisfy DoD needs, and intended for use in or in support of military missions.

ACQUISITION CATEGORY (ACAT)

DoD categories established to facilitate decentralized decision making and Execution and compliance with statutorily imposed requirements. The categories determine the level of review, decision authority, and applicable procedures.

a. Acquisition Category I programs are "Major Defense Acquisition Programs." They have unique statutorily imposed Acquisition Strategy, execution, and reporting requirements. Milestone Decision Authority for these programs is the Under Secretary of Defense for Acquisition (for acquisition category I D) or, if delegated by the Under Secretary, the Cognizant DoD Component Head (for acquisition category I C) or, if delegated by the Component Head, the Component Acquisition Executive.

b. Acquisition Category II programs have unique statutorily imposed requirements in the Test and Evaluation area. Milestone decision authority for these programs is delegated no lower than the DoD Component Acquisition Executive.

c. Acquisition Category III and IV programs allow DoD Component Heads to delegate milestone decision authority for these programs to the lowest level deemed appropriate within their respective organizations.

ACQUISITION COST

Total Expenditures incurred for the Development, production, construction, and installation of an item of physical or intangible property, or the total Acquisition Cost of a group of such items.

ACQUISITION DECISION MEMORANDUM (ADM)

A memorandum signed by the Milestone Decision Authority that documents decisions made and the Exit Criteria established as the result of a milestone decision review or in-process review.

ACQUISITION ENVIRONMENT

The Acquisition process may be impacted by innumerable external factors which help shape every defense Acquisition Program, but also may create an environment that no one person Controls. These factors, which may work at diametric purposes, include policies, decisions, regulations, reactions and emergencies.

ACQUISITION LIFE CYCLE

The path, divided into five phases, each proceeded by a milestone or other decision point, through which a program progresses between initial identification of the operational requirement and final retirement from the operational inventory. The five phases are: (a) Concept Exploration/Definition; (b) Demonstration and Validation; (c) Engineering and Manufacturing Development; (d) Production and Deployment; and, (e) Operations and Support.

ACQUISITION LOGISTICS

The process of systematically identifying and assessing Logistics alternatives, analyzing and resolving logistics deficiencies, and managing Integrated Logistic Support throughout the Acquisition process.

ACQUISITION MANAGEMENT

The management of all or any of the activities within the broad spectrum of Acquisition.

ACQUISITION MANAGER(S)

The individual(s) charged with the overall responsibility for an activity within the Acquisition process of DoD systems, individual items of equipment or Facilities, and/or for planning the Logistics Support of these End Items. Examples of Acquisition Managers include senior level managers responsible for ultimate decisions, program managers, and Commodity or functional area managers.

ACQUISITION PHASE

1) For operational systems, the period in the Acquisition Life Cycle starting after the issuance of the system program directive (at the end of the program definition phase) until the Acceptance by the User of the last operating unit in a certain series, or until the specific operational requirement has been demonstrated through testing and all required updating changes resulting from the testing have been identified, approved, and placed on procurement, whichever occurs later. 2) For non-operational systems, the period in the Life Cycle after issuance of the system program directive until the end of Design and Development. 3) For non-system equipment or Facilities, the period beginning with the issuance of a procurement Authorization until the acceptance by the procuring Agency of the last operating unit in a mission-design-series; or until the item is qualified and all required updating changes resulting from qualification have been identified, approved and placed on procurement, whichever occurs later.

ACQUISITION PLAN

A formal written document which details the specific actions necessary to execute the Acquisition approach established by the approved Acquisition Strategy and which reflects guiding contractual implementation. The document generally records program decisions, contains the User's requirement, provides appropriate analysis of technical options and the Life Cycle plans for Development, testing, production, training, and logistic support of systems or items. The Acquisition Plan is used for both developmental and non-developmental items. It is the document of record maintained to reflect all phases of planning and program Execution.

ACQUISITION PLANNING

The process by which the efforts of all personnel responsible for an Acquisition are coordinated and integrated through a comprehensive plan for fulfilling the need in a timely manner and at a reasonable Cost. It is performed throughout the Life Cycle and includes the Development of an overall Acquisition Strategy and a written Acquisition Plan for managing the acquisition.

ACQUISITION PROGRAM

A directed, funded effort that is designed to provide a new or improved material Capability in response to a validated need.

ACQUISITION PROGRAM BASELINE (APB)

An acquisition program Baseline embodies the Cost, schedule, and performance objectives for a specific program. The APB is approved by the Milestone Decision Authority at milestone reviews as follows: (a) the Concept Baseline, approved at Milestone I, is applicable to the effort in Phase I, Demonstration and Validation; (b) the Development Baseline,, approved at Milestone II, is applicable to the effort in Phase II, Engineering and Manufacturing Development; and, (c) the Production Baseline, approved at Milestone III, is applicable to the effort in Phase III, Production and Deployment. Each Baseline must contain objectives for key cost, schedule, and performance parameters, including supportability. Objectives are accompanied by minimum acceptable requirements known as thresholds. Key parameters are those that, if the thresholds are not met, the milestone decision authority would require a reevaluation of alternative concepts or Design approaches. Once signed by the milestone decision authority, acquisition program baselines may only be changed at subsequent milestone or program reviews or, with the approval of the milestone decision authority, as a response to an unrecoverable baseline Deviation.

ACQUISITION STRATEGY

A Business and technical management approach designed to achieve program objectives within resource Constraints imposed. The strategy is the framework for planning, directing, and managing a program. It provides a master schedule for research, Development, test, production, fielding, and other activities essential for program success, as well as for formulating functional plans, and strategies.

ACQUISITION STRATEGY REPORT (ASR)

Describes the Acquisition approach including strategies for streamlining, selection of sources, Competition, and Contract Types throughout the period from beginning of Phase I, Demonstration and Validation, through the end of production. The ASR is an annex to the Integrated Program Summary (lPS).

ACQUISITION STREAMLINING

Any effort that results in more Efficient and effective use of resources to Design and develop, or produce quality systems. This includes efforts to ensure that only necessary and Cost effective requirements are included, at the most appropriate time in the Acquisition cycle, in solicitations and resulting Contracts for the Design, Development, and production of new systems, or for modifications to existing systems that involve redesign of systems or subsystems.

ACT

A bill or measure after it passes one or both Houses of Congress. Also denotes a law in place.

ACTION OFFICER

The person responsible for taking action on a project, for coordination of all staff activities, and assembling the action package for decision by higher authority.

ACTIVATE

To prepare or put into existence by official order a unit, post, camp, station, air force base, shore activity or naval vessel which has previously been designated by name or number or both, so that it can be organized to function in its assigned capacity.

ACTIVE REPAIR TIME

That portion of down time during which one or more technicians are working on the system to effect a repair. This time includes preparation time, Fault-location time, fault-correction time, and final Checkout time for the system.

ACTIVE TIME

The time during which an item is in the operational inventory.

ACTIVITY

1) A task or measurable amount of work to complete a job or part of a project. 2) The continuing action involved in performing an assigned task or duty which has no scheduled completion date in contrast to a program or project which has an end date.

ACTUAL COST(S)

Cost sustained in fact, on the basis of costs incurred, as opposed to a standard, predetermined, forecasted, or Estimated Cost. Actual Costs to date include costs of Direct Labor, Direct Material, and other direct charges, specifically identified to appropriate Cost Accounts as incurred, and Overhead costs and general Administrative Expenses reasonably allocated to cost accounts. See also Actuals and Actual Cost of Work Performed (ACWP).

ACTUAL COST OF WORK PERFORMED (ACWP)

A measurement of work performed in Cost/Schedule Control Systems Criteria terminology, ACWP represents the Costs actually incurred and recorded in accomplishing the work performed within a given time period. Cumulative ACWP is the sum of all of the Actual Costs for completed Work Packages and completed portions of open work packages, plus the appropriate portion of the costs for Level-Of-Effort and Apportioned Effort.

ACTUAL DOLLARS

Expenditures as recorded in prior time periods.

ACTUAL TIME

Time actually taken by a workman to complete a task or an Element of a task.

ACTUALS

The labor hours, Material Costs, and other costs expended on a program unit or item through a specific period of time. See Actual Costs.

ADAPTIVE SYSTEM

A system that has a means of monitoring its own performance and a means of varying its own parameters or its Configuration by closed loop action to improve its own performance.

ADEQUACY

1) A depth and scope of coverage sufficient to accomplish or support a task, function, or End Item. 2) In Cost Estimating, the determination that an Estimate has sufficiently addressed all required tasks and end items for a given project, and that the estimate is reasonably, and based upon supportable Data. 3) The ability to satisfy a requirement.

ADEQUATE (PRICE) COMPETITION

Price Competition exists if offers are solicited and at least two responsible offerors who can satisfy the customer's requirements independently contend for a Contract to be awarded to the responsive and responsible offeror submitting the lowest evaluated price by submitting priced offers responsive to the expressed requirements of the solicitation.

ADMINISTRATIVE CONTRACTING OFFICER (ACO)

The Government Contracting Officer located at a Contract Administrative Officer who is assigned the responsibility for administration of Government Contracts.

ADMINISTRATIVE COSTS (OR EXPENSES)

Those Costs which have to do with phases of operations not directly identifiable with the production, sale, or financing of operations. They are costs incurred in connection with policy formation and the overall direction of a Business. Salaries of major executives and general services such as Accounting, contracting, industrial relations, etc. are included in this category. See also Indirect Costs.

ADMINISTRATION LEADTIME

1) The time interval between initiation of procurement action and the letting of a Contract or the placing of an order. 2) The time interval between initiation of procurement and delivery of hardware for experimental or operational test. See also Procurement Leadtime.

ADVANCE BUY

Procurement of Components or portions of an End Item using fiscal year funds programmed in the year previous to the fiscal year of the procurement of the end item itself. Advance Buys may be necessary because of the Long-Lead time required for the procurement of the pertinent Components or portions of the end item. See also Advance Procurement.

ADVANCE BUY FUNDING

That part of the procurement funding for an End Item that is separately identified in an earlier year as an Advance Procurement.

ADVANCE FUNDING

Budget Authority provided in an Appropriation act that allows funds to be committed to a specific purpose (obligated) and spent during this fiscal year even though the appropriation actually is for the next fiscal year. Advance funding generally is used to avoid requests for supplemental appropriations for entitlement programs late in a fiscal year when the appropriations for the Current Fiscal Year are too low.

ADVANCE PAYMENT

An advance of money made to a Contractor prior to but in anticipation of performance under a Contract or contracts. Generally required to be deposited in a special Account and accounted for separately from other funds. See also Progress Payments.

ADVANCE PROCUREMENT

Authority provided in an Appropriations act to obligate and disburse during a fiscal year from the succeeding year's appropriation. The funds are added to the Budget Authority for the fiscal year and deducted from the Budget authority of the succeeding fiscal year. Used in major Acquisition Programs for advance procurement of Components whose Long-Lead time require purchase early in order to reduce the overall procurement leadtime of the major End Item. Advance procurement of long-lead Components is an exception to the DoD "full funding" policy. See also Advance Buy.

ADVANCED CHANGE STUDY NOTICE (ACSN)

A document which precedes a preliminary or formal Contract Change Proposal and which contains information establishing the need for change. It is used to allow effective initial Evaluation of the suggested change.

ADVANCED DEVELOPMENT

1) The program and/or funding category including all projects which have moved into developing hardware and non-material technological prototypes or techniques for experimental or operational test. It is characterized by line item projects, and Program Control is exercised on a project basis. Advanced Development is divided into two categories, non-systems advanced development and system advanced development. 2) One of six Research, Development, Test, and Evaluation Program Categories.

ADVANCED DEVELOPMENT MODEL (ADM)

An item used for experimentation or tests to: (a) demonstrate the technical feasibility of a design; (b) determine its ability to meet existing performance requirements; (c) secure Engineering Data for use in further Development; and, where appropriate, (d) establish the technical requirements for Contract definition. Dependent upon the complexity of the equipment and the technological factors involved, it may be necessary to produce several successive models to achieve additional objectives. The final ADM approaches the required form and employs standard parts (or nonstandard parts approved by the Agency concerned). Serious consideration is given to military requirements such as reliability, maintainability, human factors and environmental conditions. The ADM will normally be a model sufficiently hardened for use outside of laboratory environments to demonstrate the technical and operational principles of immediate interest. It may resemble the End Item, but is not intended for use as the end item. See also Brassboard and Breadboard.

ADVANCED TECHNOLOGY TRANSITION DEMONSTRATIONS (ATTD)

Projects within the non-systems Advanced Development category which are intended to: (a) reduce risk by proof of principle demonstrations in an operational environment; (b) significantly enhance capabilities or Cost Effectiveness; (c) permit potential user (operator) participation in the program; and, (d) be large enough ($l0-l00 million) to provide a significant data base.

ADVOCATE(S)

l) OSD and services overseer whose job is to encourage, monitor, enforce, and report progress in attaining certain disciplines and goals. Includes advocates for Competition, streamlining, specifications and other topical issues. 2) Persons or organizations actively supporting and "selling" an Acquisition Program.

AERONAUTICAL SYSTEM

A Composite of equipment, skills and techniques that form an airborne instrument of combat or support for a airborne instrument of combat, which has a flight vehicle as its major operational Element. The complete weapon system includes an End Item, all installed equipment, related Facilities, material services and personnel required for the operation of the system.

AEROSPACE GROUND EQUIPMENT (AGE)

All equipment required on the ground to make a weapon system, Equipment (AGE) command and control system, support system, advanced objective, subsystem, or End Item or equipment operational in its intended environment. This includes all equipment required to install, launch, arrest, guide, Control, direct, inspect, test, adjust, calibrate, appraise, gauge, measure, assemble, disassemble, handle, transport, safeguard, store, actuate, service, repair, overhaul, maintain or operate the system, subsystem, end item or Component. See also Ground Support Equipment.

AEROSPACE SUPPORT EQUIPMENT

All equipment, implements, tools, test equipment, devices, (mobile equipment or fixed), and so forth, both airborne and ground, required to make an aerospace system (aircraft, missile, and so forth) operational in its intended environment. Aerospace support equipment includes Ground Support Equipment. See also Support Equipment.

AFFORDABILITY

A determination that the Life-Cycle Cost of an Acquisition Program is in consonance with the long-range investment and force structure plans of the Department of Defense or individual DoD Components.

AGENCY

1) Any department, commission, board, or other "independent" office in the Executive Branch of the federal Government. 2) Any part of a federal, state, or local government which is responsible for carrying out a public program. 3) A Business or service acting for others.

AGGREGATE(S)

1) Total. 2) A collective mass or sum. 3) The totals relating to a whole Budget rather than a particular function, program, or line item. The seven Budget Aggregates are Budget Authority, outlays, revenues, deficit or surplus, level of public Debt, new direct loan obligations, and new guaranteed loan Commitments.

AIR PORTABLE

Equipment that can be carried in an aircraft with only minor dismantling and reassembly. This term must be qualified to show the extent of air portability.

AIRBORNE EQUIPMENT

Support or test equipment which is an integral part of an aircraft or airborne systems.

AIRCRAFT UNIT FLYAWAY COST

The Cost of the air vehicle, including the Airframe, installed engines, Electronics, airborne armament, fire control systems, Engineering Changes, and a prorata share of fabrication tooling and other production Startup Costs. See also Flyaway Cost.

AIRCRAFT UNIT PRODUCTION COST

The Cost of all the items contained in Aircraft Unit Flyaway Cost plus the cost of all peculiar support items (training equipment, ground equipment, and initial spares, etc.). See also Production Cost.

AIRFRAME

1) For aircraft, the structural Components, including the framework and skin of such parts a the fuselage, empennage, wings, landing gear (minus tires), and engine mounts. 2) For missiles, the assembled, principal structural components, less propulsion system, control, electronic equipments, and payload.

AIRFRAME COMPONENT

Any of the primary structural Elements of wing, fuselage, and vertical/horizontal empennage of aircraft or missiles.

ALGORITHM

A set of ordered procedures or a prescribed set of well defined rules of process for the solution of a mathematical problem in a finite number of steps. Contrast with Heuristic.

ALLOCABLE COST

1) A Cost that is assignable or chargeable to one or more Cost Objectives in accordance with the relative Benefitsreceived or other equitable relationships defined or agreed to between contractual parties. 2) A cost is allocable to a Government Contract if it: (a) is incurred specifically for the contract; (b) benefits both the contract and other work, and can be distributed to them in reasonable proportion to the Benefits received; or, (c) is necessary to the overall operation of the Business, although a direct relationship to any particular cost objective cannot be shown.

ALLOCATED BASELINE

The initially approved documentation describing a Configuration Item's (CI) functional and interface Characteristics that are allocated from those of a higher level CI; interface requirements with other CI's; Design Constraints; and verification required to demonstrate the achievement of specified functional and interface characteristics. The allocated Baseline consists of the Development Specifications (see Type B Specification) that define functional requirements for each CI, and is normally established at the Preliminary Design Review (PDR), but no later than the Critical Design Review (CDR).

ALLOCATED BUDGET

The sum of all Budgets allocated to a Contract. Total Allocated Budget consists of the Performance Measurement Baseline and all Management Reserve.

ALLOCATED CONFIGURATION IDENTIFICATION

Currently approved performance-oriented specifications governing the Development of Configuration Items that are a part of a higher level configuration item (CI), in which each specification: (a) defines the Functional Characteristics that are allocated from those of the higher level CI; (b) establishes the tests required to demonstrate achievement of its allocate functional Characteristics; (c) delineates necessary interface requirements with other CIs; and, (d) establishes Design Constraints, if any, such as Component or part standardization, use of inventory items and integrated logistic support requirements. See Configuration Identification.

ALLOCATED MANUFACTURING MATERIAL

Direct Material of a usage nature not specifically identified in a Bill of Material.

ALLOCATION

1) For financial management, methods which will result in a reasonable distribution of indirect or Overhead costs. In deciding upon appropriate allocation Bases for overhead Costs, tests of Benefits received, Equity, and logic are decisive factors. 2) For Engineering, the methodical division of a requirement, such as volume, weight, reliability, or maintainability, downward to constituent system, subsystems, etc., in such a manner that each is assigned a part of the requirement which is appropriate to its hardware level and stateoftheart. 3) For the Government, an Authorization by a designated official of a DoD Component mailing funds available within a prescribed amount to an operating Agency for the purpose of making Allotments (i.e., the first subdivision of an Apportionment).

ALLOCATION DOCUMENT

An official Government funding document issued to a major command or other operating agency, an Allocation document represents the funds that can be committed and obligated by that Agency.

ALLOTMENT

An Authorization granted within and pursuant to an Allocation for the purpose of incurring Commitments, Obligations, and Expenditures in the accomplishment of an approved Government Budget. An allotment is a subdivision of an Appropriation which provides the funding authority for an official to accomplish a specific function or mission.

ALLOTTED FUNDS

The amount of funds that the Government has made available to cover Billings from a Contractor relative to a specified Contract.

ALLOWABLE COSTS

1) That portion of Costs, including Overhead, recognized as Reimbursable is called allowable for the purposes of costing Government Contracts. 2) A cost that meets the test of reasonableness, allocability and is in consonance with standards promulgated by the Cost Accounting Standards Board (if applicable), or otherwise conforms to generally accepted Accounting principles, or specific limitations or exclusions set forth between contractual parties.

ALLOWANCE

1) Money or the equivalent furnished in addition to prescribed rates of pay to cover such items as quarters, subsistence, clothing, or travel. 2) A prescribed amount of items of supply or equipment provided for an individual or organization. 3) A time increment included in the standard time for an operation to compensate the workman for production lost due to fatigue and normally expected interruptions, such as personal and Unavoidable Delays.

ALTERATION COST

The Cost of making physical changes in property such as cutting new openings, moving partitions, etc., which do not add to the value of the Asset.

ALTERED ITEM

Any item which, prior to the alteration, is taken from existing Government stock or procured from a vendor and altered to meet Design requirements.

AMENDMENT

1) An improvement, correction, or reformation. 2) A bilaterally agreed upon change to an existing Contract.

AMORTIZATION

1) The liquidation of a Debt through installment payments. 2) That amount of write-off to profit and loss each year in addition to normal and true Depreciation permitted by the Internal Revenue Service in computing taxes. 3) The partial or total write-off of Development Costs against hardware costs.

ANALOGY COST ESTIMATE

An Estimate of Costs based on the Historical Cost Data of a similar (analog) item and utilizing adjustment Factors to account for complexity, technical, or physical differences between the items. See Comparative Cost Estimating.

ANALYSIS

1) The separation of a whole into its constituents, with a view to its Examination and interpretation. 2) A statement of the results of such a study. 3) A systematic approach to problem solving, whereby complex problems are simplified by separating them into more understandable Elements, which may be solved individually or in combination.

ANALYSIS AND DESIGN (AD)

For Software, the determination of the functional Allocations and decompositions in Hardware and software, and the interfaces, constructs, couplings and linkages associated therewith. AD is the second phase in the Software Development Cycle.

ANCILLARY EQUIPMENT

Equipment which is auxiliary or supplementary to the primary equipment. Ancillary equipment usually consists of standard off-the-shelf items.

ANNOTATION

A marking placed on Data or drawings for explanatory purposes or to indicate items or areas of special importance.

ANTI-DEFICIENCY ACT

An Act of Congress which: (a) prohibits the Obligation or Expenditure of Government funds in excess of the amounts appropriated by Congress or in excess of amounts permitted by Agency regulations; (b) forbids the obligation of any funds in advance of the official Appropriation of funds; and, (c) requires the head of each Government agency to establish an administrative Control system for the purposes of keeping obligations within the amount of Apportionment, and enabling the agency to detect and report violations of the Anti-Deficiency Act through the Executive Branch to Congress.

APPORTIONED EFFORT

Effort that by itself is not readily divisible into short-term work packages, but which is related in direct proportion to measured effort.

APPORTIONMENT

A distribution by the Office of Management and Budget of amounts available for Obligation from Appropriation or fund accounts of the Executive Branch. The distribution makes amounts available on the basis of specified time periods, programs, activities, projects, objects, or combinations thereof. The apportionment system is intended to achieve an effective and orderly use of Government funds. The amounts so apportioned limit the obligations that may be incurred. Apportionment is the third of four phases of the DoD Resource Allocation Process.

APPRAISAL

1) An official Evaluation. 2) The impartial Analysis of information, at each responsible management and Control level, from which the Effectiveness and Efficiency of the total process can be measured and preventive or corrective action determined.

APPRAISE

To set a value on, to Estimate the amount of, or to judge in quantifiable terms.

APPRAISED VALUE

A value estimated by appraisers after physical Examination of Capital property (or an item thereof), or the review of all the factors which would affect its value.

APPROPRIATION(S)

1) An act of Congress that permits Federal agencies to incur obligations and make payments from the Treasury. An appropriation act usually follows the Enactment of Authorization legislation, and is the most common means of providing Budget Authority. appropriations represent limitations of amounts which agencies may obligate during a specified time period, not Cash actually set aside in the Treasury. 2) Funding categories through which Congress appropriates the Budget to various Government agencies or accounts. These "types of funding", or Color of Money", may also refer to a specific fiscal year or individual program. The thirteen current federal appropriations include: (a) Labor, Health, and Human Services; (b) Transportation; (c) Interior; (d) State, Justice, and Commerce; (e) Energy and Water; (f) Agriculture; (g) Housing and Urban Development (and most major independent agencies); (h) Treasury and Postal Service; (i) Legislative Branch; (j) District of Columbia; (k) Defense; (l) Military Construction; and, (m) Foreign Operations. These categories may be further divided, to allow Congress more direct Control over the spending of Government funds. The DoD, for example, has five major appropriation categories from which all DoD programs are funded: (a) Research, Development, Test and Evaluation (RDT&E); (b) Procurement; (c) Operations and Maintenance (O&M); (d) Military Personnel; and, (e) Military Construction (MILCON). See also Program Cost Categories.

APPROPRIATION COMMITTEES

The Senate and House Appropriations Committees originate legislation granting Budget Authority to federal agencies, and have oversight authority to monitor how Government funds are spent.

APPROPRIATION LIMITATION

An amount fixed by Congress within an Appropriation which cannot be exceeded.

ARCHITECTURE

The Design and interconnection of the main Components of a hardware or software system.

ARMAMENTS

Weapons with lethal Capability (i.e., missiles, rounds, etc.).

AS OF DATE

1) A date (day, month, year) associated with a report that signifies that the Data contained in the report reflects the information existing as of that date. 2) A date for the retroactive application in the recording of financial transactions for events occurring before or on that date, but not actually recorded on that date, particularly to permit a more accurate financial report at the end of a fiscal period.

ASSEMBLER

A Computer Program that is one step more automatic that a Translator, it translates not only operations but also Data and input-output quantities from symbolic to machine language form in a one-to-one ratio. An assembler program may have the Capability to assign locations within a storage device.

ASSEMBLY

1) A number of parts or subassemblies, or any combination thereof, joined together to perform a specific function. 2) A major section of an aircraft, missile, space craft or other structure. 3) The putting together of parts to make a complete or finished product.

ASSEMBLY AND CHECKOUT

Those activities related to Assembly, installation, integration, and testing occurring up to the time of turnover of an item to the customer.

ASSEMBLY DRAWING

A production drawing which depicts the assembled relationship of two or more items or a group of items.

ASSET

Anything owned having monetary value, assets may include property, equipment, notes, Accounts, accrued Earnings, revenues receivable, and Cash or its equivalent.

ASSUMPTION

A supposition on the current situation, or a presupposition on the future course of events, either or both assumed to be true in the absence of positive proof. Assumptions are necessary in the process of planning, Estimating, and decision making.

ASYMPTOTE

A Curve that continuously approaches a Baseline, axis or other curve, but does not meet it within a finite distance.

ATTRITED EQUIPMENT

Items which are destroyed and are no longer in inventory.

ATTRITION

1) The loss of a resource due to natural causes in the normal course of events, such as a turnover of employees or the spoilage or obsolescence of material. 2) The reduction in a work force caused by loss of personnel and materiel. The reduction of work force due to transfer, resignation, layoff, or retirement, or, in the case of military, release from active duty.

ATTRITION RATE

A Factor, normally expressed as a percentage, reflecting the degree of losses of personnel or materiel due to various causes within a specified period of time.

AUDIT

The systematic Examination of records and documents to determine: (a) the Adequacy and Effectiveness of budgeting, Accounting, financial, and related policies and procedures; (b) compliance with applicable statutes, regulations, policies, and prescribed procedures; (c) the reliability, accuracy, and completeness of financial and administrative records and reports; and, (d) the extent to which funds and other resources are properly protected and effectively used.

AUDIT REPORT

A report prepared as the result of an Audit or Examination of the Accounts, records, Estimate detail, or administrative operating policies, procedures and practices of a corporate entity, Contractor, Agency, or individual.

AUTHORIZATION

1) A sanctioning or approval. 2) An act of Congress which permits a federal program or activity to begin or continue from year to year. It sets limits on funds that can be appropriated, but does not grant funding which must be provided by a separate Congressional Appropriation act.

AUTHORIZATION COMMITTEES

The standing committees of Congress which have legislative authority, authorize programs, and conduct oversight over Agency programs. For the DoD, the Authorization Committees are the Senate and House Armed Services Committees. See Authorization.

AUTHORIZED WORK

That effort which has been definitized and is on Contract, plus that effort for which definitized Costs have not been agreed to, but for which written Authorization has been received.

AUTOMATIC (OR AUTOMATED) DATA PROCESSING (ADP)

The processing of large volumes of Data through the use of high speed electromechanical or electronic machines. This term denotes the handling of data with full use of Data Processing equipment and with a minimum of human intervention. See Electronic Data Processing.

AUTOMATIC (OR AUTOMATED) DATA PROCESSING EQUIPMENT (ADPE)

1) A machine, or a group of interconnected machines, consisting of input, storage, computing, Control, and output services, which uses electronic circuitry in the main computing element to perform arithmetic and/or logical operations automatically by means of internally stored or externally controlled programmed instructions. 2) Data Processing equipment which directly supports or services central Computer operations. See Automatic Data Processing.

AUTOMATIC TEST EQUIPMENT (ATE)

Any automated device used for the express purpose of testing prime equipment. ATE is considered to be Support Equipment, and is often external to the prime device.

AVAILABILITY

1) A measure of the degree to which an item is in the operable and committable state at the start of a mission when the mission is called for at an unknown (random) point in time. 2) The probability that a system is operating satisfactorily at any given point in time (includes repair, administrative, logistics time).

AVERAGE

1) The arithmetic mean. 2) A typical quantity or value which is representative of a group or series of quantities or values related to a common subject.

AVERAGE LOT RELEASE COST

The amount resulting from the division of the Costs accumulated against a lot release by the number of units in that release.

AVERAGE UNIT PROCUREMENT COST (AUPC)

The Average cost for the units in a given lot, AUPC includes nonrecurring production Costs, recurring flyaway, rollaway, sailaway, as well as Data, training, support equipment, and Initial Spares costs. Design to Average Unit Production Cost objectives, expressed in constant dollars, are an established requirement for entry into Phase I of the Acquisition Life Cycle.

AVOIDABLE DELAY

Any time during an assigned work period which is within the Control of the workman and which he uses for idling or for doing things unnecessary to the performance of the operation. Such time does not include Allowance for personal requirements, fatigue, and Unavoidable Delays.

AWARD

1) To grant. 2) Notification to bidder of the acceptance of the Bid.

AWARD FEE

A contractual provision by which the customer determines the Fee paid to the Contractor on the basis of performance during the Contract