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  • Question

    A question has arisen regarding the proper definition of cost overruns with regard to depot maintenance workload. Specifically, is a cost overrun defined as those costs beyond the depot maintenance program's planned dollars or authorized dollars? In the past depot maintenance cost overruns were always defined as those costs exceeding authorized dollars, not the planned dollars. Thanks, Rich Kessler DSN 793-6949


    Answer

    I could not find any distinction for cost overruns involving depot maintenance work. Generally, overruns are against authorized dollars, not planned dollars. Planned dollars and planned workload are estimates and not formal commitments of the Government. They can be changed, both increased or decreased, without issuing formal contract modifications or formal terminations (in the event of a decrease).

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