BACK ORDER

The quantity of an item requisitioned by ordering activities that is not immediately available for issue, but which is recorded as a stock Commitment for future issue.

BACKFITTING

The addition of new type equipment to the Configuration of operating systems or the installation of equipment in production systems which have been delivered without such equipment. See also Retrofit.

BACKLOG

1) The known work input which is beyond the workload Capability of an organization or segment of an organization for any given period of time. 2) Generally, the value of unfilled orders at a particular point in time.

BACKPANEL

A panel, with connector receptacles on one side and terminals (such as solderless wrapped connections) on the other side, which is used to provide point-to-point electrical interconnections. The point-to-point electrical connections may be printed wiring. See also Motherboard.

BACKUP (DATA)

Detailed information consisting of Data supporting an Estimate, proposal, or Bid. Backup data is usually more detailed than Support Data, but the terms are sometimes used interchangeably. See also Rationale and Substantiation.

BACKUP QUANTITY

The inventory stocked at a supply Depot to provide required items to the depot repair resupply pipeline.

BAILMENT

The loan of Government property to a Contractor to be held in trust in accordance with the terms and conditions of a specific bailment agreement and to be returned accordingly. Bailment does not include Government property furnished to a contractor under a Prime Contract to be installed in an End Item, or which will lose its identity during Contract performance.

BALANCE TO COMPLETE (BTC) ESTIMATES

An Estimate of the labor, materials, and other direct and Indirect Costs necessary to complete a program or project from a given point in time. The BTC is often combined with Actuals to derive an estimate of the total program or project Cost. See also Estimate to Completion.

BALANCED LINE

A series of progressive related operations with approximately equal standard times for each, aged so that work flows at a desired study rate from one operation to the next.

BALANCED TECHNOLOGY INITIATIVE (BTI)

A DoD user-oriented program to hasten the application of advanced technology to the most critical and urgent operational needs. BTI projects are demonstrating leap-ahead capabilities, enabled by emerging technologies in smart weapons, target acquisition, battlefield C3I, active countermeasures, and ultra wide bandwidth radars and high power microwave systems.

BALL PARK ESTIMATE

A very rough Estimate (usually a Cost Estimate) made with some knowledge and confidence that the estimate is within a reasonable range of exactness or "somewhere in the ball park."

BANK

A planned accumulation of Work-in-Process to permit reasonable fluctuations in performance times of coordinated or associated operations.

BASE

1) An area or locality from which operations are projected or supported. 2) The starting point. 3) A center of organization or activity. 4) The Denominator used in the development of a Factor or rate, such as Direct Labor hours/dollars, or dollars/weight, etc.

BASE LABOR

A term referring to "hands on" or "doing" labor hours. These labor hours form the Base for the application of Factors for supporting labor functions.

BASE-LEVEL REPAIR (BLR)

Repairs performed at Organizational and Intermediate Level Maintenance.

BASE PERIOD

The period of time for which rates and Factors are determined for projection to future Estimates.

BASE YEAR

1) A term used to define a year which is: (a) the economic Base for dollar amounts in an Estimate; (b) the base for rate calculation or projection; or, (c) the starting point for the application of Escalation Factors. 2) A reference period which determines a fixed price level for comparison in Economic Escalation calculations and Cost Estimates. The price level index for the base year is 1.000.

BASE YEAR DOLLARS (OR COST)

Costs or dollars which are expressed in the economic condition of a specific year and do not include Escalation or Inflation for future years. See also Constant Year Dollars.

"BASED ON" PRICE

A price may be considered to be "based on" established catalog or market prices of Commercial Items sold in substantial quantities to the general public, if the item being purchased is sufficiently similar to the Commercial item to permit the difference between the prices of the items to be identified and justified without resort to Cost Analysis.

BASELINE

1) A defined quantity or quality starting point for subsequent efforts and progress measurement. Baselines may be established on technical, Cost, schedule, or other parameters. 2) The point for departure for alternate programs, options or Enhancements. 3) The basic program or proposal in response to a Request For Proposal (RFP) or mission requirement. See also specific types of baselines such as Contract Budget Baseline, Performance Measurement Baseline, and Acquisition Program Baseline.

BASELINE COMPARISON SYSTEM

A current operational system, or a Composite of current operational subsystems, which most closely represents the Design, operational, and support Characteristics of the new system under Development.

BASELINE COST ESTIMATE (BCE)

An Estimate of the Cost of the Program Baseline, the BCE is the first deliberate, detailed estimate of acquisition and Ownership Costs and is normally required for high level decision making. The BCE is performed early in the program and serves as the Base point for all subsequent tracking, Auditing, and traceability.

BASELINE DESCRIPTION

A formal agreement between the Defense Acquisition Executive, the Service Acquisition Executive, the Program Executive Officer, and the Program Manager that summarizes the Cost, schedule, and performance requirements critical to program success.

BASELINING

A process whereby all managers concerned collectively agree on the specific description of the program requirements and funding, and make a Commitment to manage the program along those guidelines.

BASIC ORDERING AGREEMENT (BOA)

A written instrument of understanding (not a Contract) executed between a procuring activity and a Contractor which sets forth negotiated contract clauses which will be applicable to future procurements entered into between the parties during the term of the agreement. It includes as specifically as possible a description of the supplies or services and a description of the method for determination of prices.

BASIC RESEARCH

1) See Research. 2) Efforts typically performed in laboratories as experiments to explore the basic laws of science and their potential application to DoD weapon systems or technology Development.

BELLS AND WHISTLES

New responsibilities and/or Enhancements, which are sometimes not mission-essential, that are added to a system mission (usually by the user or developer) as the system proceeds through Development and requirements are being defined and changed.

BENEFIT(S)

1) An advantage. 2) Results attained in terms of the goal or objective rather than in terms of output. 3) Advantages which may be quantifiable or nonquantifiable, such as least Cost, greatest accuracy, or longest range.

BENEFIT ANALYSIS

Analysis to identify, measure, and evaluate the Benefits for different proposed alternatives.

BENEFIT COST ANALYSIS

An analytical approach to solving problems of choice. It requires: (a) the definition of objectives; (b) the identification of alternative ways of achieving each objective; and, (c) for each objective, the identification of an alternative which yields the required level of Benefits at the lowest Cost. Benefit Cost Analysis is often referred to as Cost Effectiveness Analysis when the benefits of the alternatives cannot be quantified in terms of dollars.

BEST AND FINAL OFFER (BAFO)

During a conventional Source Selection, upon completion of discussions with proposal offerors, Contracting Officers issue those offerors still within the Competitive Range a request for their "best and final offers". Following Evaluation of the BAFOs the Source Selection Authority selects that source whose BAFO is most advantageous to the Government.

BEST TIME

A percentage of Efficiency to standard time, best time is the highest level of performance expected when 100% efficiency conditions are limited. The degree of variance between Standard Time and best time is a judgment consideration of the estimator. Assessment of this variance is based on how much the combined limiting conditions will impact the operator or group performance on a given task.

BIAS

1) A preconceived preference, or prejudice. 2) An effect which systematically distorts a statistical result. The distortion may be small enough to ignore or large enough to invalidate the results. It may be due to sample Design, the sampling process or the Estimating Technique. Analysts try to use "unbiased" techniques.

BID

1) An offer of a price, as for a purchase or a Contract. 2) Normally, a response to a customer initiated Request For Proposal or Quotation, which may be either competitive or of a single source nature. In the past, bid documentation requirements were generally simpler than those for a Proposal. However, in current usage, the term bid is often used synonymously with proposal. 3) The act of making or submitting a bid.

BID BOND

A guarantee furnished by a prospective Contractor assuring that he will enter into a Contract on which he has Bid if it is Awarded to him.

BID COMPARISON

The technical, management, and Cost evaluations and Analysis conducted by a buyer to develop a ranking of Bids.

BID PRICE

A price offered subject to immediate acceptance for a specific amount of goods and/or services.

BID(DING) AND PROPOSAL (B&P) EXPENSE

That activity or effort directed toward the preparation and presentation of solicited or unsolicited proposals with the intent of obtaining a customer funded Contract for a new or improved product or service, or to obtain contractual support for research and Development efforts.

BIENNIAL BUDGET

A biennial Budget, as currently structured, represents program Budget Estimates for a two year period in which fiscal year requirements remain separate and distinct. The Fiscal Year 1986 DoD Authorization Act required the submission of two year budgets for the Department of Defense beginning with Fiscal Years 1988 and 1989. The department has since institutionalized a biennial Cycle for the Planning, Programming, and Budgeting System (PPBS).

BILL OF MATERIAL

A descriptive and quantitative listing of all of the materials, supplies, parts, and Components required to produce a complete End Item of material, Assembly, or subassembly, to overhaul or repair such an item, or to construct or repair a structure or Facility.

BILLING

The preparation and submittal of reports indicating accrued Expenses through a specific time period or milestone for payment by the customer.

BLACK BOX

1) Electronic, electrical, or electromechanical Assembly that is part of a system or subsystem. 2) A generic term for Classified hardware.

BLOCK BUY

Buying more than one year's requirement under a single year's Contract, by contracting for the total quantity in the first contract year. See also Full Funding.

BLOCK DIAGRAM

A graphic design or Chart of items connected with directional arrows showing the relationship of Component parts of a system and depicting the main flow in the system.

BOILER PLATE

A popular slang term used to describe: (a) standard paragraphs and/or words regularly used in Acquisition documentation; (b) Government preprinted text for use in Contracts or Requests For Proposals; (c) standard contract clauses as defined in Government procurement regulations; and, (d) standard terms and conditions used in Purchase Orders.

BOND

1) A certificate indicating a promise to repay a Debt at a specified time. 2) Security for performance of an obligation.

BOOKKEEPING

The recording of financial Data for the purpose of Accounting, usually under the system known as double entry bookkeeping and under an Accounting System designed by an accountant.

BOTTLENECK

1) A narrow passage. 2) Any hindrance to progress or productivity.

BRANCH

1) An organizational subdivision. 2) An organizational entity created by management to pursue a specific product application within the parent division's product Charter.

BRASSBOARD (CONFIGURATION)

An experimental device (or group of devices) used to determine feasibility and to develop technical and operational Data. It normally will 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 Breadboard Configuration.

BREADBOARD (CONFIGURATION)

An experimental device (or group of devices) used to determine feasibility and to develop Technical Data. It normally will be configured only for laboratory use to demonstrate the technical principles of immediate interest. It may not resemble the End Item and is not intended for use as the projected end item. See Brassboard Configuration.

BREAKDOWN

An orderly listing of the individual items, categories, or Elements which constitute the total product, system, Estimate, etc.

BREAK POINT

The point in a Cost Sharing relationship when a program goes from an incentive-type relationship to a fixed price relationship. Also known as the "Point of Total Assumption".

BREAK-EVEN ANALYSIS

1) The study of cost-volume-profit relationships. 2) An Analysis of proposed procurement and facilitization to compare the potential Cost of establishing a second source with the potential savings due to competitive pressure from the second source.

BREAK-EVEN POINT

1) The point at which revenues from sales exactly equal total Incurred Cost, i.e., Revenues = Variable Costs + Fixed Costs. 2) The unit at which the Cumulative product sales equal or recover the Cost of the investment required to produce the product. 3) In decision making Analysis, such as Make or Buy or lease versus buy, etc., the break-even point or "the point of indifference" is that point at which the level of activity for either method results in exactly the same cost. This type of decision making often involves the utilization of Assumptions for various levels of activity, such as number of units needed.

BREAKOUT

1) See Breakdown. 2) The Execution of an Acquisition Strategy to convert some parts or systems Components from contractor-furnished to Government-furnished. Rather than having the Prime Contractor provide all system components from its sources, the Government procures the breakout items directly from industry.

BUDGET

1) A statement, or plan, in financial terms, of projected and/or expected operations of an Accounting entity for a given fiscal period, a budget may include such details as: (a) Estimated Costs, obligations, and Expenditures; (b) source of funds for financing including anticipated reimbursements and other resources; and, (c) history and workload Data for the projected program and activities. 2) The portion of the total Cost allocated or assigned to a particular task or set of tasks. 3) A comprehensive financial plan for the Federal Government, encompassing the totality of Federal receipts and outlays (expenditures). See President's Budget.

BUDGET ACTIVITY

Categories within each Appropriation and fund account which identify the purposes, projects, or types of activities financed by the Appropriation or fund.

BUDGET AUTHORITY

Authority provided by law to enter the federal Government into transactions that will ultimately result in a Disbursement of Government funds and an outlay from the Treasury. It may be classified by the period of availability, by the timing of congressional action, or by the manner of determining the amount available. See also Appropriation and Authorization.

BUDGET AUTHORIZATION

An administrative action, normally within the chain of command or management, approving an operating Budget for use in the Execution of a program or programs.

BUDGET CYCLE

1) The period of time which elapses from the initiation of the Budget process to the completion thereof for a particular fiscal year. 2) In Government, the 24-month Cycle that covers planning, programming, budgeting, Enactment, and Execution phases. See Planning, Programming, and Budgeting System (PPBS).

BUDGET(ARY) ESTIMATE

1) For the Government, an estimated fund requirement for any Element included in a Budget, or, collectively, all estimated fund requirements for a particular operating Agency or Component or consolidation thereof. 2) For Contractors, an Estimate offered for budgetary and planning purposes only. It does not constitute a firm Commitment by the contractor to enter into a Contract, but represents the approximate Cost of performing the effort required in fulfillment of the contractor's understanding of the job to be performed. See Cost Estimate.

BUDGET ESTIMATE SUBMISSION (BES)

The Budget submissions, by the individual services, to OSD showing budget requirements for inclusion in the DoD budget. See Future Years Defense Program.

BUDGET EXECUTION

1) See Execution. 2) The final of four phases in the DoD Resource Allocation Process.

BUDGET LINE ITEM

A specific program End Item, with its own identity (e.g., B1-B Bomber) within the Budget.

BUDGET YEAR(S)

The year(s) following the Current Fiscal Year, and for which the Budget Estimate is prepared. For example, if the current fiscal year is FY 1991, budget year(s) would be FY 1992-93.

BUDGETED COST OF WORK PERFORMED (BCWP)

A measurement of work performed in Cost/Schedule Control Systems Criteria terminology, BCWP represents Earned Value for work accomplished, and provides a method for comparing work performed to work scheduled, work remaining, etc. Cumulative BCWP is the sum of the Budgets for completed Work Packages and completed portions of open work packages, plus the appropriate portion of the budgets for Level-Of-Effort and Apportioned Effort.

BUDGETED COST OF WORK SCHEDULED (BCWS)

A measurement of work scheduled in Cost/Schedule Control Systems Criteria terminology, BCWS represents the timephased Budget for a task and provides a method for comparing work scheduled to work performed, work remaining, etc. Cumulative BCWS is the sum of the budgets for all work (work packages, planning packages, etc.) scheduled to be accomplished (including in-process work packages), plus the amount of Level-Of-Effort and Apportioned Effort scheduled to be accomplished within a given time period.

BUDGETING

The process of translating approved or negotiated resource requirements (manpower and material) into a funding profile, or timephased financial targets and goals. See also Budget.

BUFFER STOCK

In-production material managed by the Contractor that is available for provisioning support.

BUILDING BLOCK COST

Costs identified to specific systems or subsystems. Building Block costs are often used in Configuration trade studies or program planning exercises.

BUILDUP

1) The process of attaining prescribed strengths of personnel, units, vehicles, equipment, stores, and supplies. Also may be applied to the means of accomplishing this process. 2) A slang term referring to the structure and methodology of an Estimate.

BUILT-IN-TEST (BIT)

A test approach using Built-In-Test Equipment or self test hardware software to test all or part of the unit under test.

BUILT-IN-TEST EQUIPMENT (BITE)

1) Test equipment manufactured and assembled as an integral part of the End Item or system. 2) Any device permanently mounted in the prime equipment and used for the express purpose of testing the prime equipment, either independently or in association with external test equipment. See Built-In-Test.

BULK MATERIAL

Material stored and issued by volume, footage, weight, or liquid measurement, such as petroleum, bar stock, and lumber.

BURDEN

Costs which cannot be attributed or assigned to a system as Direct Costs. An alternative term for Overhead. See also Indirect Costs.

BURN-IN

The operation of an item to stabilize its Characteristics.

BURN RATE

The monthly rate at which a Contractor's funds are expended during the period of the Contract.

BUSINESS

1) The process of sales and management of services, manufacturing, production, construction, or goods. 2) Commercial, industrial, or professional dealings. 3) Any commercial establishment or entity.

BUSINESS MANAGEMENT

1) The general services, information, and management services, characterized as the ordinary and necessary Costs of being in Business. Normal operations including Contracts, finance, industrial relations, and facilities beyond those related to products or programs. 2) In proposals, business management labor usually covers non-engineering and non-manufacturing labor. See also Business and Financial Management.

BUSINESS AND FINANCIAL MANAGEMENT

1) The planning, organizing, directing, and controlling of the dollars and resources of a program, project, or Agency. 2) Business and financial functions, the latter including management of Acquisition funds, are built around contracting and include: Acquisition Plans and Acquisition Strategy; Contract Type, contract Award and monitoring, Cost Estimating, formulation of Budget inputs, and other programmatic or financial documentation, Request For Proposal preparation; Source Selection; Contractor surveillance; program office administration and personnel; Budget Execution (paying bills); Technical Data Rights; and, Total Quality Management.

BUSINESS OBJECTIVE(S)

A Business strategy reflecting the analysis of a firm's goals, national requirements, customer procurement plans, fund availability, and technological capabilities. The business objectives for a market area are determined from the relative desirability or firmness of specific business opportunities.

BUY

1) The purchase of an item or system. 2) The number of End Items to be procured either over a certain period or in total. 3) To approve, concur, or accept an action or proposal from another Agency or office.

BUY-AMERICAN

A legislated preference for the Government to generally procure domestic end products. This preference is usually accorded during the Source Selection process by applying punitive Evaluation factors to most foreign products.

BUY-IN

Submission of an offer, usually substantially below Estimated Cost, in order to win a Contract. Contractors may "buy-in" to a program with the expectation that Expenses and additional Profit will be recovered during a later Buy of the same or a similar product, with the current contract win providing the contractor a future competitive advantage.

BUY-OUT

During production when there are multiple Contractors, a final Competition to select a single contractor for future production.