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  • Question

    When calculating the cost of 1% for a contract over time, where the BAC has changed over the life of the contract, should the BAC at the historical data points be used or should the most recent BAC be used to calculate the progress towards the most updated scope of the contract? Is there official guidance for performing this calculation?


    Answer

    "Cost of 1 percent" metric is not a concept taught by DAU. I recommend contacting NAVSEA 04 for specific guidance/policy in calculating that metric since it is specific to shipbuilding.

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