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Management Reserve (MR)

APMT 045

DAU GLOSSARY DEFINITION

An amount of the Total Allocated Budget (TAB) withheld for management control purposes, rather than designated for accomplishing a specific task or set of tasks. It is not a part of the Performance Measurement Baseline (PMB). Synonymous with reserve.

Alternate Definition

Management Reserve (MR) is An amount of the total budget withheld for management control purposes for future considerations to handle execution risks. It is not part of the Performance Measurement Baseline (PMB).
 

Alternate Definition Source

DoD Earned Value Management System Interpretation Guide (EVMSIG)

General Information

Management reserve (MR) is held for growth within the currently authorized work scope, for rate changes, and for other program unknowns. MR is not used to offset accumulated overruns or underruns and it is not a contingency budget than can be used for new work or eliminated from the contract price during subsequent negotiations. The management reserve budget is not included as part of the Performance Measurement Baseline (PMB).

 

From the Total Allocated Budget (TAB), most contractors first set aside a small percentage for MR to cover unknown unknowns. The remaining budget becomes the PMB.

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