As a contractor, we are asked on contracts to report information on CLIN's (CFSR) as well as by option year. Is it acceptable, as part of developing the CWBS in a product oriented environment, to embed the CLIN and Option year into the CWBS and still be compliant with MIL-STD-881-C?
This portion of the MIL-STD-881-C (1.1, second paragraph) "The primary objective of this standard is to achieve a consistent application of the WBS for all programmatic needs (including performance, cost, schedule, risk, budget and contractual" suggests that it is appropriate but clarification is appreciated.
As another question, on a "Services" contract with a deliverable of "Hours" only, does the contractor need to follow the Product Oriented categories in the MIL-STD or instead follow the language in the contract identifying the contractual CWBS?
A) The contract may have specific wording about how cost data is to be delivered to the Gov't but if I couldn't find it, I would ask the PCO first. Then I recommend considering the following that slightly contradicts MILSTD para 1.1 presented in the question: MILSTD 881C; para 2.2.5 Avoiding Pitfalls in Constructing a WBS. "An effective WBS clearly describes what the program manager intends to acquire. It has a logical structure and is tailored to a particular defense materiel item. It serves as a common thread among the specifications, SOW, Contract Line Item Number (CLIN) structure, IMS, IMP, EVMS and Risk Management. Remember, the WBS is product-oriented; addressing the products required, not the functions or costs associated with those products." Therefore, the costs should not be embedded here.
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Additionally, the problem with assigning a CLIN is that the CLIN may not have a relationship between the commodities being purchased and the funding sources that will be utilized. My point here is that the products and services are often funded with dollars from multiple pots of money (e.g. you may have RDTE dollars for something but also Procurement dollars for the same WBS element so which will you select and which amount anyway?) Why would you want to assign CLINs to the BOEs for a work package anyway? How will it show anything more than your bid? In other words, once you start executing the program - how will the CLINs show any change? Why not use EVM, IMS, and other spend plan/money software packages to manage the accounts? I believe the Contract WBS Unique line numbers are the same as the UIDs in the IMP, IMS, and EVM system, so we should always be able to drill down and connect all of these documents. Therefore, I don't see the value of assigning the CLIN to the work packages.
B) MILSTD 881-C, para 2.3 Solicitation and Proposal also states: The WBS used for a solicitation must be structured by selecting appropriate elements from the approved Program WBS. The CLINs, configuration items, contract SOW tasks, contract specifications, and contractor responses will be expressed in terms of the WBS to enhance its effectiveness in satisfying the objectives of the acquisition. The relationship of the Contract WBS elements to the SOW and the CLINs must be clearly traceable. A one-to-one relationship might not exist, nor is it required. (again, as long as you're providing the traceability from WBS to the Financial system (and work docs) then you've done your job.
Question2 (I viewed this as a separate question): As another question, on a "Services" contract with a deliverable of "Hours" only, does the contractor need to follow the Product Oriented categories in the MIL-STD or instead follow the language in the contract identifying the contractual CWBS? I did not find a requirement that directs the contractor to follow product categories for this, so the answer is no.