What are the accepted definitions of PALT, CALT, and TALT? What is the method for calculating each? What is the reference?
1. Our research supporting the response to this inquiry yielded the following definitions of “lead-time” from various authoritative sources as described below.
A. Joint Publication 1-02, DoD Dictionary of Military and Associated Terms
(8 Nov 2010, as amended through 15 Nov 2012)
• Procurement Lead Time
— The interval in time between the initiation of procurement action and receipt into the supply system of the production model (excludes prototypes) purchased as the result of such actions. It is composed of two elements, production lead time and administrative lead time.
• Production Lead Time
— The time interval between the placement of a contract and receipt into the supply system of materiel purchased. Two entries are provided: a. initial — The time interval if the item is not under production as of the date of contract placement; and b. reorder — The time interval if the item is under production as of the date of contract placement.
Note: “Administrative Lead Time” is not defined in this document.
B. DoD FMR 7000.14-R, Vol. 2A, Chapter 1, “General Information” (Oct 2008)
Section 010224. Glossary of Terms – Procurement: Lead Times
• Administrative Lead-time (ALT)
. This is the amount of time required to complete the administrative actions leading to contract award. The ALT is used to forecast contract awards.
• Production Lead-time (PLT)
. This is the amount of time required by a contractor to produce the first item after contract award until deliveries begin.
• Procurement Lead-time
. This is the total of ALT and PLT. When used to determine quantity requirements, calculations should begin when the first ALT action begins.
C. Naval Supply Systems Command Manual, Vol. 2 – Supply Ashore, Chapter I: Basic Supply Principles (Apr 2007)
http://doni.daps.dla.mil/Publications/SUPPLY ASHORE VOLUME II CHAPTER 1 BASIC SUPPLY PRINCIPLES.pdf
Procurement Lead Time
. The procurement lead time is that interval, usually in months, between the initiation of procurement action and the receipt of material in the Navy Supply System at the destination(s) specified by the procurement action. Procurement lead time is composed of two elements as follows:
• Administrative lead time
--the time interval from the receipt of the approved
requisitioning document (RD) in the procuring activity until a contract or order is awarded as a result of this document.
• Production lead time
--the time interval between the award of a contract or order and the receipt of material into the system at the destination(s) specified in the contract or order.
D. USA, Fort Polk MICC, Procurement Data Package Guide, Rev 4 (01 Jun 2011)
Procurement Action Lead-Time (PALT)
Lead-time starts at the receipt of the "complete" PDP from the customer and ends at award of the contract. It does not include the time required for delivery.
A complete PDP, generally speaking, consists of the following documents.
• Purchase Request
• Statement of Work (SOW) or Performance Work Statement (PWS)
• Independent Government Estimate (IGE)
• Technical Exhibits or Attachments
• Service Contract Approval (Services >$2,500)
• Quality Assurance Surveillance Plan (QASP) – if a service
• Justification & Approval (J&A) Document for Sole Source (if applicable)
E. USA, Ft. Jackson MICC, Desktop Standard Operation Procedures (Jan 2010)
http://www.jackson.army.mil/!2009_pages/doc/MICC DOC CUSTOMER HANDBOOK JAN 2010.doc
Contract Action Lead Time (CALT)
The following standard CALTs are indicated and are based upon the time when a “proper” purchase request (PR) is received by the Directorate of Contracting until contract award:
• Requirements < $25K = 20 days
• Requirements $25K to $100K = 30 days
• Requirements $100K to $10M = Up to 208 days
• Atch 10 provides a template for calculating CALT for Services acquisitions
F. USA, PEO – Simulation, Training, and Instrumentation: PARC Memorandum (7 Jan 2011)
https://bop.peostri.army.mil/sites/bop/Contract Vehicles/STOCII_DOCS/PALT Memo_ 7 Jan 2011.pdf
Procurement Administrative Lead Time (PALT)
is defined as the estimated amount of time required to effectively award a contract action once a Requirements Package (RP) has been accepted by a Division Chief of the Acquisition Center. The standard PALT for contract actions reflects the amount of time generally required to process procurements in accordance with FAR, DFARS, AFARS and is affected by acquisition strategy, program dollar value, complexity and risk and the authority level for approving acquisition documents.
G. Marine Corps Base Camp Lejeune, Regional Contracting Office -
Procurement Administrative Lead Time “(PALT)”
measures the number of days procurement takes from acceptance of a ready procurement request (PR) by the CO to the day of award.
H. DAU CON115 – Contracting Fundamentals Course, Module 2, Purchase Request Packages
& DAU CON124 – Contract Execution, Lesson 1.2 - Elements of Purchase Request Packages
Procurement Administrative Lead Time:
calculates the time it takes from the receipt and acceptance of an approved Procurement Request (PR) package by the contracting office to contract award. Once the PR is accepted, Procurement Administrative Lead Time starts.
Major defects in the PR requiring resolution include, among others: (1) Missing, insufficient or overly restrictive requirements description, (2) Funding issues (source or amount funds not cited, funds will expire before award, funds are insufficient) and (3) one or more approvals are missing. These major defects must be resolved before the PR package can be accepted.
2. As indicated above, the commonly used terms of “PALT” (i.e., either Procurement Action
Lead Time or Procurement Administrative
Lead Time) “CALT” and even “ALT” (Administrative Lead Time) as illustrated above are used by DoD and the Services to describe essentially the same basic functional activity; namely, the time interval from the receipt of an approved PR (or RD, PDP, or RP as the case may be) in the contracting office until a contract or order is awarded as a result of this document. Therefore, we believe that there is no practical difference among these commonly used terms and that any of these terms would describe the commonly accepted definition of this functional activity as used in the field.
3. Our research did not yield any definition, accepted, authoritative or otherwise, for the term "Total Action Lead Time (TALT)", and therefore we believe that this is not a commonly used acquisition-related term. However, if we were to speculate, this term might be synonymous with the term “Procurement Lead Time” as described in references 1A, 1B and 1C above.