RAMP UP

A gradual increase in Cost, manpower, or quantities produced. The term ramp up is often applied to Low Rate Initial Production runs, where a small number of quantities produced is gradually increased as the production line is proven or production funds or approvals are obtained.

RANDOM FAILURE

Any Failure whose occurrence is unpredictable in an absolute sense, but which is predictable in a probabilistic or statistical sense.

RANDOM SAMPLE

A Sample selected in such a way that each Element being sampled has an equal chance of being selected.

RANGE

1) The extent of variation. 2) The distance limiting the operation or action of something. 3) In Statistics, the difference between the smallest and largest figure or quantity in a statistical series. 4) In Cost Estimating, the upper and lower possibilities of the forecasted Costs for a program or project. 5) The Universe of all realistic possibilities, excluding the extremes, or non-probable possibilities.

RATE

1) A proportion, or quantitative measure of a part to a whole. 2) In Cost Estimating, the dollar value (actual or estimated) applied to such things as one hour of labor effort or one unit of machine usage, etc. 3) In Manufacturing, the number (quantity) of items being produced in a given time period, such as a month or year.

RATE COST CURVE

A mathematical way of explaining and measuring the impact of changing production rates on a program's total Cost. See also Learning Curve.

RATE SCHEDULE GENERAL

A set of Forward Pricing Rates based on projected (firm and likely) Business volume. These Rates are applicable to overall program or company activity.

RATE SCHEDULE SPECIAL

A set of Forward Pricing Rates projected for Pricing a particular task or program that was not considered in, or is separate from, the Business base used for the development of general rates.

RATIO

1) The Rate, or relation in degree or number between two similar things. 2) The relative size of quantities expressed as the quotient of one divided by the other.

RATIO COST ESTIMATING

A Statistical Cost Estimating method of comparing the values of two distinct efforts, and projecting the result or quotient of this comparison into future efforts being estimated. See also Cost Estimating Methods.

RATIONALE

1) The fundamental reason(s) for something. 2) An exposition of principles or reasons. 3) In Estimating, a term used to explain the logical basis for an Estimate. The rationale is generally used to document: (a) why a particular estimating method was selected; (b) how a specific estimate was developed; (c) why specific historical information was used and selected; (d) why a given item, task, or estimate is similar to past experience and history; (e) why specific Estimating Techniques were used; and/or, (f) why the estimate is realistic and credible. See also Backup, Support Data, and Substantiation.

RAW MATERIAL

Any item (including raw stock, minor Components, sheet stock, or wires, etc.) in a form or state which requires further processing into finished sellable goods or products.

RAW TIME

The pure, productive time to perform each task in an operation. Raw time is derived from Time studies, Motion studies, Standard Time data, and historical information.

READINESS

The state of preparedness of individuals and/or systems to meet a Mission. The measure of readiness is based on the Adequacy and training of personnel, material condition, supplies and reserves of supply and support system, and the numbers of units available, etc.

REAL PROPERTY

Lands, buildings, structures, utilities systems, improvements, and appurtenances thereto. Real Property includes equipment attached to and made a part of buildings and structures (such as heating systems), but not movable equipment (such as plant equipment).

REAL TIME

1) An immediate response to an outside stimulus or request. 2) For software, the essence of real time is the synchronism of processes with the outside world.

REAL TIME TESTING

The testing of a system or its Components at its normal operating frequency or timing.

REALISM

1) An inclination toward literal truth or pragmatism. 2) In Cost Estimating, the determination that all Costs have been included in the Estimate, and that all Estimated Costs are relatively valid.

REALISTIC TEST ENVIRONMENT

A Test environment which utilizes or simulates the conditions that the system is expected to be operated and maintained under, including natural weather and climatic conditions, terrain effects, battlefield disturbances, and enemy threat conditions.

REALIZATION FACTOR

The Ratio of actual performance time to Standard Time, usually expressed as a decimal number.

RECURRING COST(S)

Costs which are incurred for each item produced, or for each service performed.

RECURRING DEMAND

A request made periodically, or anticipated to be repetitive, for Consumption or use, or for stock replenishment.

RECURRING EFFORT

Effort repeated during a contract's duration.

REDUNDANCY

1) That which exceeds what is necessary or natural, or which is needlessly repetitive. 2) The repetition of parts or subsystems to assure continued operation in the event that the original (primary) part or subsystem fails. 3) The existence of more than one means for accomplishing a given function. Each means of accomplishing the function need not necessarily be identical.

REGRESSION ANALYSIS

The statistical association of one or more independent variables with a dependent variable. Under static conditions the Analysis is called Correlation. When used for predictive purposes, it is referred to as regression. The relationships in a regression analysis are associative only; causative inferences are added subjectively by the analyst.

REHABILITATION COST

The Cost to restore or improve plant, property, or equipment which is in a deteriorated condition.

REIMBURSABLE

An Expenditure made for another individual or Organization, which will subsequently be recovered.

REIMBURSEMENTS

Amounts received to repay the Cost of material, work, or services furnished to or for others.

REJECTED BID

A Proposal or offer which is not accepted because: (a) the acceptance of another Bid constitutes the rejection of any others; (b) the absence of Competition invalidates all bids; (c) the job is readvertized and bids are resolicited; (d) the irresponsibility of the bidder voids a bid; (e) fraud or collusion with other bidders is discovered; or, (f) the quotation fails to fall within the Competitive Range established by the procuring activity.

RELIABILITY

1) The ability of a System and its parts to perform its Mission without Failure, Degradation, or demand on the support system. 2) The Probability that a system, or portion of a system, will perform its functions under specified conditions and for a specified period of time or number of Cycles or trials when it is installed, tested, used, maintained, and logistically supported as specified. 3) The probability that a system or piece of equipment will provide specified performance for a given period of time under operational conditions.

RELIABILITY, AVAILABILITY, AND MAINTAINABILITY (RAM)

A requirement imposed on Acquisition systems to insure that they are operationally ready for use when needed, will successfully perform assigned functions, and can be economically operated and maintained within the scope of Logistics concepts and policies. RAM is applicable to materiel systems, test measurement and diagnostic equipment, training devices, and Facilities developed, produced, maintained, procured, or modified for use. See individual definitions for Reliability, Availability, and Maintainability.

RELIABILITY IMPROVEMENT WARRANTY

A Fixed Price Contractual incentive for operational Reliability and Maintainability improvement, providing for contractor repair of failed material over a stated period of time.

RELOCATION EXPENSE

Approved Expenditures related to employee transfers between company or Agency business locations where the new assignment will extend beyond a specific period of time.

REMOVAL

1) The physical separation of an item from its designed position. Removal is normally required to facilitate a maintenance action on the item removed or on the area or items exposed by the removal. Implicit in removal is the requirement for reinstallation. 2) The dismantling of a unit of property due to retirement from service.

REMOVAL COST

The Cost of dismantling a unit of property due to retirement from service.

REPAIR

The restoration or replacement of parts or Components of property or equipment as necessitated by wear and tear, damage, Failure, or the like, in order to restore and maintain the item in an Efficient, acceptable operating condition. See also specific types of repair, such as Economic Repair, Major Repair, and Normal Repair.

REPAIR LEVEL ANALYSIS

A management technique designed to analyze and evaluate systems, to establish the most effective methods of Maintenance support. See also Optimum Repair Level Analysis and Level of Repair.

REPAIR PART(S)

1) Consumable bits and pieces; that is, individual parts or nonreparable assemblies, required for the repair of spare parts or major End Items. 2) Material capable of separate supply and replacement, which is required for the maintenance, overhaul, or repair of system or equipment.

REPAIRABILITY

The Probability that a failed system will be restored to operable condition within a specified repair time.

REPAIRABLE ITEM(S)

1) An item of a durable nature which has been determined by the application of Engineering, economic, and other factors to be the type of item feasible for restoration to a serviceable condition through regular Repair procedures. 2) Equipments or Components which, upon Failure, are repaired and returned to stock for re-issue.

REPLACEMENT

The act of replacing a unit with the same or a similar unit, or with a superior or different unit.

REPLACEMENT COST

The Cost of replacing an existing item or group of items of tangible property.

REPLACEMENT FACTOR

The estimated percentage of equipment in use, which will require Replacement during a given period, due to wearing out beyond Repair, enemy action, abandonment, pilferage, and other cases, except catastrophes.

REPLENISHMENT

The purchase of items following the initial purchase, whether bought for initial support of End Items, stock Replacement, or other purposes.

REPLENISHMENT SPARES (OR SPARE PARTS)

Those Spare Parts, both repairable and Consumable, purchased, after Initial Spare Parts procurement and throughout the life of the system or End Item, to provide support required to replenish stocks for use in the Maintenance, Overhaul, and Repair of the system or end item.

REPORT

Any Data or information prepared on a one time, periodic, recurring, regular, or as required basis, whether in oral or written narrative, tabular, graphic, Computer generated, or other form, regardless of method of preparation or transmission.

REPORTING ELEMENT

A defined task or item on which Cost, technical, and/or other Data are to be collected. Common reporting Elements include Contract Line Item Numbers, Work Breakdown Structure Elements, and Configuration Items, etc.

REPROCUREMENT

The process by which additional quantities are acquired, usually as Spares, after the Production of the related major system or item of equipment has ended. See also Procurement.

REPROGRAMMING

1) The transfer of Funds between Program Elements or line items within an Appropriation, for purposes other than those contemplated at the time of appropriation. Reprogramming is generally accomplished pursuant to consultation with and approval by appropriate congressional committees. 2) The replanning of the effort remaining in a Contract, resulting in a new Budget Allocation, which exceeds the Contract Budget Base. 3) The revising or rewriting of a Computer Program.

REPROVISIONING

A subsequent Procurement of the same equipment from a different contractor. Reprovisioning is a refinement of the Initial Provisioning process, and is distinct from Replenishment or Reprocurement actions.

REQUEST FOR PROPOSAL (RFP)

A Solicitation package used in negotiated Acquisition to communicate Government requirements to prospective contractors, and to solicit Proposals. The RFP is the medium by which potential sources are advised of technical goals, the scope of work, and special contractual considerations of the Procurement, and of the general criteria to be used to evaluate proposals. The RFP usually contains a description of the items or services to be procured, the terms and conditions of the Contract, the Contract Type, schedules, a Statement of Work, Specifications, Data requirements, and instructions for the preparation of technical, management, and/or Cost Proposals.

REQUEST FOR QUOTATION (RFQ)

A Solicitation package used in negotiated Acquisition to communicate Government requirements to prospective contractors, and to solicit Quotations. A response to an RFQ is not an offer susceptible to acceptance by the Government, but is only informational in character. RFQs are employed to elicit price, delivery, and other information from potential sources, when the Government intends to procure standard Off-the-Shelf items, built to known Specifications, and not requiring extensive Proposal documentation, or in contemplation of writing a Purchase Order, or entering into a Contract of considerable magnitude after substantial Negotiation by both parties.

REQUEST FOR TECHNICAL PROPOSALS

A Solicitation document used in the Two-Step Sealed Bidding process, a request for technical Proposals is normally in letter form, and asks only for technical information. Price and cost Breakdowns are forbidden, until the Government has determined which technical proposals are technically sound.

REQUIRED OPERATIONAL CAPABILITY (ROC)

(OBSOLETE) A document stating Mission Need and specific Operational Capability. The ROC has been replaced by the Operational Requirements Document.

REQUIREMENT(S)

1) A necessity or need. 2) A Parameter or Constraint which must be met. 3) The need or demand for personnel, equipment, Facilities, other resources, and supplies or services, by specified quantities, for specific periods of time, or at a specific time.

REQUIREMENTS SCRUB

A review of User/Government comments received in response to the announcement of an Operational Requirement. The scrub is used to validate and prioritize suggested or requested system functions and capabilities before the release of Solicitations to industry.

REQUISITION

1) A formal written request for something needed. 2) An authoritative request, especially for personnel, supplies, or services authorized, but not made available without the specific request. 3) To make such a demand or request. 4) To demand or commandeer for military use.

REQUISITION CYCLE

The time interval between routine stock Replenishment requisitions for items in a particular Property class.

REQUISITIONING OBJECTIVE

The maximum quantities of material to be maintained on hand, and on order, to sustain current operations. The Objective consists of the sum of stocks represented by operating and safety level requirements, and the order and shipping time, or Procurement Lead Time, as appropriate.

RESCISSION

An action by the President canceling Budget Authority (BA) previously appropriated, but not yet obligated or spent. If both Houses of Congress do not approve the proposed rescission within 45 days, the President must obligate the BA as intended by Congress. See also Deferral.

RESCISSION BILL

A bill or joint resolution that provides for cancellation, in whole or in part, of budgetary resources previously granted by Congress. Unless Congress approves a Rescission bill within 45 days of continuous session after receipt of a rescission proposal, the budgetary resources must be made available for obligation.

RESEARCH

1) Scholarly or scientific investigation. 2) The systematic inquiry into a subject in order to discover or revise facts, Assumptions, or theories, etc. 3) Efforts to increase knowledge of natural phenomena and environment, and toward the solution of problems in all fields of science, Research may be divided into two distinct categories: (a) Basic Research, that activity which has as its goal the increase of scientific knowledge, rather than its practical application; and, (b) Applied Research, that activity which normally follows basic research and attempts to determine or expand the potentialities of new scientific discoveries or improvements in technology, and normally advances the State of the Art. 4) The means of developing new technology for potential use in defense systems. 5) One of six Research, Development, Test, and Evaluation Program Categories. See also Research, Development, Test, and Evaluation.

RESEARCH AND DEVELOPMENT (R&D) COST(S)

Those program Costs primarily associated with Research and Development efforts, including the development of a new or improved Capability to the point where it is ready for Operational use. R&D costs include equipment costs funded under Research, Development, Test, and Evaluation Appropriations and related Military Construction appropriation costs. They exclude costs which appear in the Military Personnel, Operations and Maintenance, and Procurement appropriations. See also Research, Development, Test, and Evaluation Costs.

RESEARCH AND DEVELOPMENT (R&D) STUDY CONTRACTS

Customer funded Research and Development activity, which supports and supplements a company's funded new Business effort.

RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E)

1) Activities for the Development of new systems, which include basic and exploratory Research, advanced and Engineering Development, development and operational testing, and the Evaluation of test results. See also Research, Development, Test, and Evaluation Program Categories. 2) A DoD Appropriations category.

RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) COST(S)

The sum of all Costs (contractor and Government) resulting from Applied Research, engineering Design, Analysis, Development, Test, Evaluation, and the management of development efforts, related to a specific system. See also Research and Development Costs and Research, Development, Test, and Evaluation.

RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) PROGRAM CATEGORIES

The Research, Development, Test, and Evaluation program is divided into six categories: (a) Research, which includes scientific study and experimentation directed toward increasing fundamental knowledge and understanding in those scientific fields that are related to national security needs; (b) Exploratory Development, which includes efforts directed toward solving specific military problems from fairly fundamental Applied Research to sophisticated Prototype hardware, study, programming, and planning efforts; (c) Advanced Development, which includes all projects which have moved into the Development of hardware and/or nonmaterial technological prototypes or techniques for experimental or operational test; (d) Engineering Development, which includes those development projects which are being engineered for military service use, but have not yet been approved for Procurement or operations; (e) Management and Support, which includes research and development effort directed toward supporting installations or operations required for general research and development use; and, (f) Operational System Development, which is a convenience grouping for major line item projects, which appear as the RDT&E Costs of weapons System Elements funded in other than RDT&E programs.

RESERVE

1) Something saved for future use. 2) An amount of Appropriations, contract Authorizations, other Funds or Capital set aside for savings, contingencies, or other purposes. See Management Reserve. 2) Standby units of the armed forces.

RESIDUAL VALUE

The scrap value of equipment at the end of the Economic Life of a system.

RESOURCE(S)

1) An available supply that can be drawn upon when needed. 2) Any person, tool, equipment, material, fund, or other item available for use to complete an activity or task.

RESOURCE ALLOCATION PROCESS (RAP)

The Process through which Funds are allocated, the RAP includes the Planning, Programming, and Budgeting System, the congressional budget Enactment process, the Apportionment of appropriated funds, and Budget Execution.

RESOURCE CONTENTION

For Software, the conflict that arises when two or more software tasks of equal priority compete for the same Hardware resource simultaneously.

RESOURCE LEVELING

A Process whereby Resources are sorted out among tasks and activities to identify and avoid conflicts between scheduling and availability.

RESPONSIBILITY

1) The duty or obligation of an individual or group of individuals to perform satisfactorily an assigned function or task. 2) The obligation of an individual for the proper custody, care, and safekeeping of Data, property, or funds entrusted to his possession or under his supervision.

RESPONSIVE

A term used in Proposal Evaluation to indicate how closely or well the bidders followed the requirements, provisions, and instructions set forth in the Request for Proposal or Request for Quotation.

RETIREMENT

1) The act of removal of a unit of property from service, following its sale, or the end of its productive use. (2) The state of an individual who has withdrawn from active participation in a job or Business.

RETIREMENT FUND

The fund into which Retirement and disability contributions are deposited, and from which amounts are withdrawn for the payment of retirement annuities.

RETROACTIVE PRICING

A Pricing action computed after a portion or all of the work specified under Contract has been completed. The pricing is usually based on a review of contractor performance and recorded Cost Data.

RETROFIT

Field change kits for the purpose of updating some previously released hardware to a final production Configuration. 2) A modification of a Configuration Item to incorporate changes made in later Production items. 3) The incorporation of an Engineering Change (at any level) in accepted or in-service items.

RETURN ON INVESTMENT (ROI)

Usually defined as net Income divided by Investments, there are actually three different ROI financial concepts ratios, depending on the type of investment (Assets, return on stockholder's Equity, or return on invested Capital) used as the equation's Denominator. The definitions for each are: (a) Return on Assets equals net income divided by total assets, and reflects the amount earned from the investment of all financial resources committed, including liabilities and owner's equity of funds invested in assets; (b) Return on Owner's Equity equals net income divided by funds invested by stockholders, and reflects the amount earned on funds invested by shareholders; and, (c) Return on Invested Capital equals net income divided by long term liabilities plus stockholder's equity, and focuses on the amount earned from relatively permanent capital investments.

REVENUE

1) Income. 2) In Commercial Accounting, the amount realized from sales of goods or services, or from the use of Capital. 3) In Governmental or institutional accounting, taxes, duties, fees, and contributions to support the organization.

REVISION OF STANDARD PRICE

A change in the Standard Price of an item under current Procurement, due to significant change in current market price or production Cost.

REVOLVING FUND

1) A Fund established to finance a continuing Cycle of operations through amounts received by the fund. 2) Within the Department of Defense, such funds include stock funds and industrial funds, as well as other working Capital funds.

REWORK

1) The reaccomplishing or correcting of Defective work, either before, during, or after inspection. Rework includes all follow-on effort to rework, repair, replace, retouch up, disassemble, and reassemble, etc., once an item or task has been initially completed, but is rejected by inspection or test. This term is most frequently applied to Assembly labor, where rejections due to workmanship tend to be random, and are not directly related to a particular unit or individual. 2) The actual or Standard Cost of correcting defective work.

RIGHTS IN (TECHNICAL) DATA

1) Those rights including title, possession, use, or proprietary interest in Data which, although not necessarily patentable or copyrightable, give the holder of such rights a competitive advantage, or a special consideration. 2) In Acquisition, the right of the Government to acquire Technical Data. If the Government has funded (or will fund) the entire (or a part of the) Development of an item, Component, or process, then the Government is entitled to unlimited rights in technical data. However, if the item is developed by a contractor or subcontractor exclusively at private expense, the Government is entitled to Limited Rights. Such data must be unpublished and identified as limited rights data. See also Government Purpose License Rights and Unlimited Rights.

RISK

1) Uncertainty. 2) The potential hazards or problems inherent in any activity. 3) A measurable Probability of consequence associated with a set of conditions or actions. 4) In Acquisition, risk is generally addressed as technical, Cost, or schedule risk, and can be expressed in a quantitative or qualitative manner. Generally, risk has a negative connotation, and Risk Analysis is conducted to mitigate risk or to identify actions that can be taken to avoid failure.

RISK ANALYSIS

1) An Examination of Risk areas, or events, to determine options and the probable consequences for each event in the Analysis. 2) The Evaluation of a situation, environment, or set of conditions to determine the technical, financial, or Business risks inherent in a venture or mission. 3) The application of qualitative and quantitative techniques for analyzing, quantifying, and reducing the Uncertainty associated with the realization of time, Cost, or performance goals. Risk analysis may utilize complex models, Expert Opinions, or intuitive judgement. 4) The prediction of Cost Growth, schedule slippage, and performance Degradation to allow for proper management of future events.

RISK ASSESSMENT

The Process of subjectively determining the Probability that a specific interplay of performance, schedule, and Cost Objectives, will or will not be attained along the planned course of action.

RISK MANAGEMENT

All actions taken to identify, assess, and eliminate, or reduce Risk to an acceptable level in selected areas, and the total program.

ROBUST DESIGN

The Design of a system, such that its performance is insensitive to variations during its manufacturing, or in its operational environment (including maintenance, transportation, and storage), and such that the system continues to perform acceptably throughout its Life Cycle despite Component drift or aging.

ROUGH ORDER OF MAGNITUDE (ROM)

A budgetary or planning figure that is usually a rough preliminary figure.

ROUND TABLE COST ESTIMATING

Cost Estimating accomplished by the interaction of functional experts on a given project. Representatives of Functional Areas, such as Engineering, manufacturing, contracts, purchasing, and Accounting may be brought together to develop the Costs based on experience, knowledge of product, and knowledge of market conditions. The Estimate developed by this approach is usually completed without Benefit of detailed drawings or bills of material, and with very limited information concerning specifications. This technique of Estimating has the advantage of speed of application, and is relatively inexpensive; however, it lacks detailed documentation and support. See Cost Estimating Methods.

ROUNDING (OR ROUNDOFF)

Reducing the number of Significant Digits by dropping off the last (or least significant) digit(s), and adding 1 to the last significant digit if the next digit that was dropped was equal to 5 or greater (e.g., 3.50546, by dropping the last 3 least significant digits is rounded to 3.51). See also Truncating.

RUN

One Execution of a program, series of programs, or steps in a particular Cycle or process.

RUN TIME

1) The time necessary to complete one Run. 2) The repetitive time it takes to produce a part in sequence.