As the primary FM analyst for this program, I am questioning why, in it's last 7 months of the contract period of performance, the contractor still is showing over $2.0M in their undistributed budget (UB) for current reporting period on their cost performance report data.
Is there a certain time limit to utilize or move the undistributed budget before contract has ended?, the current contract ends February 2020.
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As the primary FM analyst you know IAW the DoD Earned Value Management System Interpretation Guide (EVMSIG), Undistributed Budget (UB) is a temporary holding account for budget associated with specific work scope or contract changes that have not been distributed to a control account or summary level planning package. And if we understand it correctly, your concern is that the establishment of the modified performance management baseline incorporating /distributing the $2.0M into your CPIF sustainment contract should not be taking as this long. Based on the seven months remaining in your contract's period of performance, your concern is justified in that the USG would like the costs assigned to UB (these temporary holding accounts) distributed as expediently as possible to the correct level of your WBS and into the PMB. My experience has been 60- 90 days for a contractor to update the PMB, depending on complexity/level of detail required. However, to better understand your concern, some additional information would be required. You mentioned it is still showing for the current reporting period but didn't tell us how long the $2.0M has been in the undistributed budget. Was this a change order or modification vs. initial allocation? If your program keeps logs on the baseline revisions and change controls that would have accompanied the incorporation of these approved scope changes, that data would have been helpful. Also were there other program priorities or contract requirements that could have delayed/interfered? Also no sure how big your program is to understand incorporation of $2.0M. So, I don't believe there are any time limits on distributing budget. However, one of the best ways to quickly resolve this to avoid difficult audit questions or becoming a bill payer, would be to ask the contractor what's happening with the UB. Where is it on its way to, and when is it going to get there? If this is above your pay grade then I would recommend elevating discussion with your EVM data specialist and program/project manager while there is still time in your POP to utilize the money. Hope this helps.