OBJECTIVE

A goal which can be reasonably and feasibly attained within the expected availability of resources, such as of Manpower, Funds, and technological Capability. 2) A value beyond the Threshold, that could potentially have a measurable, beneficial impact on capability or operations and support above that provided by the threshold value (for example, additional range that might reduce the number of refueling systems required).

OBLIGATION(S)

1) A duty to make a future payment of money. The duty is incurred as soon as an order is placed, or a Contract is Awarded for the delivery of goods and/or the performance of services. The placement of an order is sufficient to incur an obligation, which legally encumbers a specified sum of money which will require outlay(s) or Expenditures in the future. 2) The Estimate of the actual amount of the Cost of an item being ordered or authorized for service. This estimate is carried in official Accounting records, and reserves funds pending completion of the contract.

OBLIGATION AUTHORITY

1) A congressional Authorization to procure goods and services within a specified amount by Appropriation or other authorization. 2) The administrative extension of such authority, as by Apportionment or Funding. 3) The amount of authority so granted. 4) An administrative subdivision of an Allotment authorizing the incurrence of Obligations, within a specified amount against the allotment, without further recourse to the office which granted the authority. Generally, the term applies to the various agencies of the Government where a specific form has been developed to facilitate the issuance of obligation authorities.

OBLIGATION BASIS OF ACCOUNTING

The basis of Accounting for Appropriations or Contract Authorizations, whereby Obligations are recorded in the accounts when incurred, and appropriations, Allotments, or contract authorizations are reduced accordingly, regardless of whether the Expenditures are to be made in the same fiscal period.

OBLIGATIONS INCURRED

The amount of orders placed, contracts Awarded, services received, and similar transactions, which require the Commitment of Funds, during a given period.

OBLIQUE VIEW

A pictorial aspect which offers a threedimensional view of the subject, and upon which accurate measurements can be scaled.

OBSOLETE

1) No longer in use, fashion, or force. 2) Outdated, or no longer valid. 3) No longer satisfactory for the purpose for which obtained due to improvements or revised requirements.

OCCUPANCY

1) The act of occupying or the condition of being occupied. 2) The period during which one owns, rents, or uses premises or land. 3) For the Government, the date a Facility or installation is available for contractor use.

OFF-EQUIPMENT WORK

All Maintenance Actions performed on removed repairable Components (usually at the Intermediate Level Maintenance activity).

OFFER

1) To present for acceptance or rejection. 2) To Bid, or propose as payment. 3) A response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract.

OFFSET (PROCUREMENT)

1) The term used to cover the offerings to foreign governments of opportunities to respond to selected DoD Procurement actions. 2) Any agreement made by DoD to purchase foreign items to offset some specific amount or percentage of that country's Expenditures in the U.S. for U.S. defense items.

OFF-THE-SHELF EQUIPMENT

Any equipment regularly produced and placed in stock by a manufacturer or supplier prior to receiving orders or contracts for the sale of the equipment.

OFF-THE-SHELF PROCUREMENT

The Procurement of existing systems or equipment without a Research, Development, Test and Evaluation program, or with minor development to make the system suitable for DoD needs. An Off-the-Shelf Equipment procurement may be for Commercial systems or equipment, or for End Items already in the DoD inventory. See also Nondevelopmental Item.

OFFICE OF MANAGEMENT AND BUDGET (OMB) CIRCULAR A-lO9

The Government document which establishes executive policy for the Acquisition of Major Systems. The circular applies to all Executive Branch agencies, and contains management principles for the conduct of systems acquisition, that are implemented by DOD Directive 5000.1 and DOD Instruction 5000.2. Within DoD, these management principles pertain to major defense acquisition programs, non-Major Defense Acquisition Programs, and highly sensitive Classified programs.

OGIVE

A graphic presentation of Cumulative hours or Costs (or average, or period hours or costs) plotted against time. The result is either: (a) a cumulative, normally "S" shaped Curve; or, (b) an Average, conventional "bellshaped" curve, called an "Ogive" for its resemblance to a Gothic arch or its diagonal ribs.

ONE YEAR APPROPRIATIONS

Appropriations generally used for current administrative, maintenance, and operational programs, including the Procurement of items classified as expense. These appropriations are available for Obligation for one Fiscal Year.

ON-EQUIPMENT WORK

All Maintenance Actions accomplished on complete End Items.

ON-OFF TEST

A test conducted by repeatedly switching on and off either the signal, power, or load connected to the unit under test, while observing the reaction of performance or some other Parameter of that unit under test. This type of test is frequently used to isolate equipment while conducting Compatibility, interference, or system performance evaluations.

ON-THE-JOB TRAINING (OJT)

A program of training designed specifically to train an individual, without the necessity for interrupting his performance of daily assigned duties relative to his work assignment. OJT may take the form of formal classroom training, reading assignments, job performance, with or without supervision, and/or self-paced instructional materials or combination thereof. OJT programs may range in complexity from those designed to train an entry level student to become fully qualified in the case of simple tasks, to programs designed to take an individual who possesses the fundamental principles required to understand the tasks from this level to that of an individual who is fully qualified to perform all the tasks and duties of his position without assistance.

OPERABLE

The state of being able to perform intended function.

OPERAND

1) Any one of the quantities entering into or arising from an operation. 2) In programming, an argument, result, or parameter, or an indication of the location of the next instruction.

OPERATING AND SUPPORT COST(S)

1) Those resources required to operate and support a system, subsystem, or a major Component during its useful life in the operational inventory. 2) A Life Cycle Cost term covering the Cost of operating and supporting a system from Initial Operational Capability (IOC) through a given period of time (usually 20 years).

OPERATING BUDGET

The annual Budget of an activity stated in terms of functional/subfunctional categories and Cost Accounts. The operating budget usually contains Estimates of the total value of resources required for the performance of the mission.

OPERATING COST

1) The total Outlay in Cash, or its equivalent, applied in carrying out a specific program or function. 2) Those program Costs necessary to operate and maintain military Capability. These costs include the DoD Appropriations categories of Military Personnel and Operations and Maintenance. 3) A alternate Life Cycle Cost term for Operating and Support Cost.

OPERATING TIME

The time during which a system is operating in a manner acceptable to the operator.

OPERATION

1) A method of productive activity. 2) The intentional changing of an object in any of its physical or chemical Characteristics. 3) The Assembly or disassembly of parts or objects. 4) The preparation of an object for another operation, transportation, inspection, or storage. 5) The planning, calculating, giving, or receiving of information. 6) Military action using deployed forces.

OPERATION AND SUPPORT (O&S)

The fifth phase of the Acquisition Life Cycle, O&S overlaps Phase four, Production and Deployment. O&S begins as soon as the first production systems are fielded.

OPERATION AND SUPPORT (O&S) COST PARAMETER(S)

Major Programs using Design To Cost are required to have O&S cost goals established in the form of some measurable Parameters which can be monitored during Test and Evaluation as well as operation. These O&S parameters are to be established by the Program Manager, to influence the Design and to Control O&S Costs. They are to be contract goals for achievement by the contractor.

OPERATION PROCESS CHART

A Chart which identifies the successive operations, in their required sequence, for producing a product.

OPERATIONAL

Of, or pertaining to, the state of actual usage.

OPERATIONAL ASSESSMENT

An Evaluation of Operational Effectiveness and Operational Suitability made by an independent operational test activity, with user support as required, on other than production systems. The focus of an operational assessment is on significant trends noted in Development efforts, programmatic voids, areas of risk, adequacy of requirements, and the ability of the program to support adequate operational testing. Operational assessments may be made at any time using technology demonstrators, prototypes, mockups, Engineering Development Models, or simulations but will not substitute for the independent Operational Test and Evaluation necessary to support full production decisions.

OPERATIONAL AVAILABILITY

1) The probability that, when used under stated conditions, a system will operate satisfactorily at any time. 2) The degree (expressed in terms of 1.0 or 100% as the highest) to which one can expect an equipment or weapon system to work properly when it is required. The equation is uptime over uptime plus downtime, expressed as Ao. It is the quantitative link between Readiness objectives and Supportability.

OPERATIONAL CAPABILITY

The measure of the results of the Mission, given the condition of the systems during the mission (i.e., Dependability). See also Initial Operational Capability and Full Operational Capability.

OPERATIONAL CHARACTERISTIC(S)

Those military Characteristics that pertain primarily to the functions to be performed by equipment, either alone or in conjunction with other equipment. For example, for Electronic Equipment, operational characteristics include such items as frequency coverage, channeling, type of modulation, and character of emission. Initially identified in the Mission Need Statement, as a minimum, these Constraints consider the expected threat and natural environments, the possible modes of transportation into and within expected areas of operation, the expected Electronic Warfare environment, the potential for NATO application, operational manning limitations, and existing infrastructure support capabilities.

OPERATIONAL CLIMATIC TESTING

Tests addressing the upper and lower bands of the climatic spectrum, ranging from severe European winter to Mid-East summer. These tests provide an assessment of the Operational Suitability of a system under the climate conditions it is most likely to encounter in actual usage.

OPERATIONAL EFFECTIVENESS

The overall degree of Mission accomplishment of a system, when used by representative personnel in the environment planned or expected (i.e., natural, electronic, threat, etc.) for operational employment of the system, considering organization, doctrine, tactics, Survivability, Vulnerability, and threat (including countermeasures, initial nuclear weapons effects, Nuclear, Biological, and Chemical Contamination (NBCC) threats). See Effectiveness.

OPERATIONAL READINESS DATE

The date when the system meets the specified operational Readiness levels for the specified rates and duration of utilization, and the system is supported as planned without the use of extraordinary support alternatives such as unique support material procurement and distribution techniques, contractor performance of maintenance and repair which was planning for Government support, or the use of contractor personnel to perform tasks beyond the scope of normal contractor field representative support.

OPERATIONAL RELIABILITY AND MAINTAINABILITY VALUE

Any measure of Reliability or Maintainability that includes the combined effects of item Design, quality, installation, environment, operation, maintenance, and repair.

OPERATIONAL REQUIREMENTS

User, or user representative, generated validated Mission Needs developed to address Mission Area deficiencies, evolving threats, emerging technologies, or weapon system Cost improvements. Operational requirements form the foundation for weapon system unique Specifications and Contract requirements.

OPERATIONAL REQUIREMENTS DOCUMENT (ORD)

A document which details the users objectives and minimum acceptable requirements for operational performance of a proposed concept or system. The format has been standardized across all DoD Components by DoD Directive 5000.1 and DoD Instruction 5000.2.

OPERATIONAL SUITABILITY

The degree to which a system can be placed satisfactorily in field use, with consideration being given to Availability, Compatibility, transportability, Interoperability, Reliability, wartime usage rates, Maintainability, safety, Human Factors, manpower supportability, logistic supportability, natural environmental effects and impacts, documentation, and training requirements.

OPERATIONAL SYSTEM DEVELOPMENT

1) A funding category including Research and Development effort directed towards the Development, Engineering, and test of systems, support programs, vehicles, and weapons that have been approved for Production and Deployment. 2) One of six Research, Development, Test, and Evaluation Program Categories.

OPERATIONAL TEST AND EVALUATION

The field Test, under realistic conditions, of any item (or key Component of weapons, equipment, or munitions) for the purpose of determining the Effectiveness and suitability of the weapons, equipment, or munitions for use in combat by typical military users, and the Evaluation of the results of such tests. See Test and Evaluation.

OPERATIONAL TEST PLAN

A test plan which documents specific Operational Test and Evaluation scenarios, objectives, measures of Effectiveness, threat simulation, detailed resources, known test limitations, and the methods for gathering, reducing, and analyzing Data.

OPERATIONS AND MAINTENANCE (O&M)

1) A DoD Appropriations category. 2) See Operation and Support.

OPERATIONS RESEARCH

A scientific approach which uses analytic methods adopted from mathematics to solve operational problems. The objective is to provide management with a logical basis for making sound predictions and decisions. Among the common scientific techniques used in operations research are mathematical programming, monte carlo methods, statistical information, game, and queuing theory.

OPERATIONS SECURITY

The protection of military operations and activities resulting from identification and subsequent elimination or Control of indicators susceptible to hostile operations.

OPPORTUNISTIC SOFTWARE REUSE

A form of Software Reuse practiced in an ad-hoc fashion during Software development. In opportunistic reuse, new applications are developed from software that has been salvaged from existing systems and modified to meet the specific needs of that application.

OPTIMUM

1) The best or most favorable condition for a particular situation. 2) The most Efficient and effective use of resources to accomplish a specified task. 3) The best use of time and resource.

OPTIMUM REPAIR LEVEL ANALYSIS (ORLA)

A trade study conducted by a contractor as part of the system/equipment engineering Analysis process. The ORLA serves as a basis on which to evolve an optimum approach to repair recommendations concurrent with the Design and Development process. ORLA is also referred to as Repair Level Analysis.

OPTION

1) A choice or alternative. 2) A contractual clause permitting an increase in the quantity of supplies beyond that originally stipulated, or an extension in the time for which services on a time basis may be required. 3) A contractual clause allowing the Procurement of additional quantities, services, or portions of a program. 4) An added technical or performance feature to a Configuration, program, or proposal.

ORDER TIME

The time elapsing between the initiation of stock replenishment and the submittal of a requisition or order. In combination with Shipping Time, it is the time elapsed between the initiation of a stock replenishment action for a specific activity and the receipt by that activity of the material resulting from such action. Order and shipping time is applicable only to material within the supply system.

ORDERING ACTIVITY

An activity which originates a requisition or order for procurement, production, or performance of work or services by another activity.

ORGANIZATION

1) The form of association of persons for attainment of specified objectives. 2) An identifiable unit or group of persons having specific functions.

ORGANIZATIONAL LEVEL MAINTENANCE

The Maintenance and repair performed by the activity level (organization) which uses the system's equipment, within the activity's Capability.

ORIGINAL

1) Material from which copies are made, such as handwritten copy, typed copy, printed matter, tracings, drawings, and photographs. 2) The signed and executed copy of a form or document.

ORIGINAL BUDGET

The Budget, based on the Negotiated Contract Cost, and established at, or near, the time the contract was signed.

OTHER COSTS

A Cost Element which covers Costs not usually listed under Direct Material, Direct Labor, or Overhead. Examples of other costs include costs for Computer time, travel, freight, Consultants, remote activities, and taxes, etc.

OTHER DIVISION COSTS

The Costs of other divisions performing work in support of a prime division of a company. Other division costs are usually called Interdivisional Support costs.

OTHER PLANT EQUIPMENT

That part of plant equipment, regardless of dollar value, which is used in or in conjunction with the manufacture of Components or End Items relative to maintenance, supply, processing, Assembly, or research and Development operations, but excluding items categorized as industry plant equipment.

OUTLAY(S)

1) Actual Expenditures. 2) Checks issued, interest occurred on the public Debt, or other payments, net of refunds and reimbursements. 3) Total Budget outlays consist of the sum of the outlays from Appropriations and funds in the budget, less receipts.

OUTLINE STAFF TARGET

A very broad outline of the function and desired performance of a new weapon or equipment to satisfy a Mission Need, before the possibilities of achievement and the financial aspects have been examined. This approved document contains Operational Characteristics, details of the threat, desired Capability, and a general indication of size in particular and broad Cost parameters whenever possible. Sufficient detail is given to enable a preliminary Feasibility Study to be carried out.

OUT OF SCOPE CHANGE

A contract change that is considered outside of the contractual Statement of Work and will result in an adjustment to contract Cost and price. See also Engineering Change, Class I and Scope Change.

OUTPLANT

The effort or activities that take place at a location geographically removed from a contractor's main Facility. An outplant organization usually depends on support from the inplant (home) organization.

OUTPUT

1) Production, especially the amount produced or manufactured during a given period of time. 2) The results of the efforts of a group or system. 3) The energy or work produced by a machine, equipment, or individual. 4) In contracting, the desired result from the contractor. 5) In Automatic Data Processing, the result of what a Computer is asked to do when activated.

OUTPUT MEASURES

A useful description of the functions, tasks, or missions performed by an Organization, and expressed in relation to those assigned, and of capabilities possessed compared to those for which the organization is designed.

OUTPUT STANDARD

A Standard which specifies the number of items or amount of services that should be produced in a specific amount of time by a specific method.

OUT-YEARS

Normally, six years beyond the year being worked in the upcoming Program Objective Memorandum (POM) or Budget. For example, if the Fiscal Year 1994-95 POM is being prepared, the out-years would be Fiscal Years 1996-2001. 2) All the years beyond the current Future Years Defense Program (FYDP). For example, if the current FYDP covers 1994-1999, the out-years are 2000 and beyond.

OVER-EXPENDITURE

Expenditures over (above) the planned or funded levels.

OVERHAUL

The process of restoring an item of supply to a serviceable condition by completely or partially disassembling the item, inspecting the condition of each of its Component parts, repairing and reassembling it, using serviceable or new assemblies, subassemblies, and parts as required, followed by inspection and operational tests.

OVERHEAD

A Cost which, because of its incurrence for common or joint objectives, is not readily subject to treatment as a Direct Cost. Such Indirect Cost is incurred to benefit the total Direct Cost or Business base of a contractor. The character of overhead cost thus requires Estimating, Budgeting, and Control techniques that take into account the total business base of a contractor. Accordingly, the overhead applicable to any one Cost Estimate or Contract is by an appropriate distribution of indirect costs through the use of a rate per hour or percentage applied to direct hours or Costs.

OVERHEAD BUDGET

A Management allocation of planned Indirect Costs to each established Overhead Pool or organization.

OVERHEAD POOL

A grouping of Overhead expenses determined to be applicable to a previously determined distribution Base, such as manufacturing or Engineering Direct Labor hours.

OVERHEAD RATES

Indirect dollars per hour or Cost to cost relationships that mathematically reflect the distribution of Overhead costs over a labor or cost Base.

OVERHEAD TASK

Work done by people charged to an Overhead account.

OVERRUN

Costs in excess of the contemplated or Target Cost. See Contract Overrun.

OVERTIME

Work in excess of eight hours a day or forty hours a week. Overtime is a resource which is available to management as a means of extending available Manpower and talent, but which imposes a premium labor Cost to any task to which it is applied. Overtime consists of two types: (a) Unscheduled Overtime (or Bottleneck Overtime), which is necessary to alleviate a temporary behind schedule condition, which can have an adverse effect on other organizations if not completed in time; and, (b) Scheduled Overtime (or Planned Overtime), expended on a planned basis to provide "round the clock" support to an activity that cannot be stopped once started (like countdown to a test firing), or to utilize machines or technical personnel to the maximum on a task.

OWNERSHIP COST

The Cost of the Cost Elements within the Operating and Support Cost category, exclusively. O&S costs include those costs associated with operating, modifying, maintaining, supplying, and supporting a weapon/support system in the DoD inventory.