Sign In
  • Question

    Since I am currently putting togther an LCCE and respective APB chart, the current threshold is 10%, which seems to be the standard from what I am reading. Can someone please send me the latest Aquisition Program Baseline APB Guidance that shows that the Threshold value should be 10%? Is this the standard Threshold guidance percentage? Please advise, Thx Chris Soltez Program Analyst JPEO JPM NBC Contamination Avoidance E2800 Edgewood APG, MD P:410-417-3440


    Answer

    Reference: USD (AT&L) memorandum “Acquisition Program Baseline Preparation and Review Guidance,” dated 30 Mar 15. 
     
    Per the memorandum:
    “The default threshold for cost is 10% above the objective BY dollar value.  Thresholds of greater than 10% above the objective values are approved by the MDA for all ACAT I programs, and are supported by justification, which is then documented in the Cost Memo.  Because APBs are used for program control purposes, OSD strongly discourages thresholds of greater than 10%.”
     
    The objective cost value is derived from the approved cost estimate and represents what the PM expects to achieve with available funding.  If the program exceeds the threshold value the program may be considered too costly.  Threshold costs apply to BY dollars.


    Open full Question Details