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  • Question

    Can the Total Contract Work Authorized, item 12.c of DD Form 1586 of the CPSR be higher (almost double) than the total in item 11.m Net Funds Required?


    Answer

    The short answer to your question, “can” the Total Contract Work Authorized be higher than the total Net Funds Required, is yes – I am sure there could be a reason that a contractor might have to submit their Contract Funds Status Report (CFSR) in this fashion.  That said, it is certainly not the norm and on the surface seems to raise questions that should be addressed with the contractor.  Per the CFSR Data Item Description (DID) DI-MGMT-81468A, which provides guidance for a contractor’s completion and submission of a CFSR (http://dcarc.cape.osd.mil/Files/EVMCR/CFSR_DID.pdf):
     
    -  10.2.11.13 Column 11m. - Net Funds Required. Enter an estimate of net funds required, subtracting funds carryover in Column 1. from total requirements in Column k.
     
    -  10.2.12.5 Item 12.c. - Total (12.a. and 12.b.). In the columns provided, enter the total contract work authorized - actuals to date (Column 1) or projected (Columns 2 through 10). This total is the sum of open commitments and accrued expenditures projected through the periods indicated by the column headings. Significant changes in the amount or time phasing of this item shall be explained in the Remarks section.
     
    As you can see from the CFSR DID, it does not state whether or not the Total Contract Work Authorized (12.c) can be higher than the total Net Funds Required (11.m).  Moreover, the CFSR DID is intentionally written this way to allow some flexibility for individual contracts and contractors to reflect their true funding requirements.  As such, you need to communicate with the contractor that submitted the CFSR (I suggest you do this via your contracting officer (PCO) and in accordance with your local procedures) to gain an understanding as to why they submitted their CFSR in this fashion.


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