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    The question is how are the costs for an aircraft mod defined? If we purchase kits, that are then installed on the aircraft, is the cost for the installation a flyway cost?


    While calculating a "flyaway" is relatively simple (procurement cost/quantity), our recommendation is that since this is a new requirement for "All the programs at ACAT 2 and 3" and DAMIR reporting is being specified by the PEO, then consistency with other modification programs would be desirable. The term "modification program" is fairly broad as to the types of modifications that are performed. Even the P-series documents addressed in the FMR Volume 2B, Chapter 4, allow a certain latitude in reporting. For example, a P-3a Individual Modification requires entries for costs and quantities, but does not specify a "flyaway" line item, whereas the P-5 Cost Analysis document does specify a "flyaway" line item. And guidance states that, "A P-5 is not required for those programs...if an Exhibit P-3a Modification Summary, has been prepared for a line item." Therefore given two similar programs, one program might elect to complete the P-5 and report a flyaway cost while the other program does not.

    We most strongly recommend that it would be best to seek your service's guidance as to the format of reporting your costs.

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