If the AWCF Supply Management (SM) activity is undertaking a study to provide risk reports pertaining to mechanical component risk and predictive obsolescence component risk, I would recover the cost via the surcharge (Supply Operations Support Costs) placed in my future rates. The result of an internal study that can potentially save funding/avoid cost to the customer in the future is chargeable to the customer via pricing. The Financial Management Regulation (FMR) Volume 2B Chapter 9 Section 126.96.36.199 states: Cost Recovery Elements/Surcharges (FM). Factors added to the acquisition cost or repair cost price of an item to arrive at the customer’s standard or exchange price. Cost Recovery Elements/Surcharges include: (1) transportation deliveries from production site to points of use or storage (Second Destination Transportation (SDT)); (2) inventory obsolescence and loss, for the costs of pilferage, damage, deterioration, physical inventory shortages and excess; (3) inventory maintenance; (4) supply operations support costs; (5) inventory augmentation; (6) CIR factor; (7) cash surcharge; and (8) Depot Level Reparable (DLR) carcass attrition costs, if applicable. You may be able to capture it on the Fund-1a Budget Exhibit under Line Item 933 (Studies, Analysis, and Evaluation) which rolls up to Other Purchased Services on the Fund 1 Budget Exhibit. The operation of the AWCF absorbs via obligations presently held and places in the surcharge in the next open pricing year.
If the study is being conducted due to a customer request, then you would need to determine the pricing rates and bill that customer for the study.
It is strongly recommended you consult the Business Financial Manager, and/or Legal Office to gain additional guidance.
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