[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR48]

[Page 902-903]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 48--VALUE ENGINEERING--Table of Contents
 
                  Subpart 48.1--Policies and Procedures
 
48.104-1  Determining sharing period.

    (a) Contracting officers must determine discrete sharing periods for 
each VECP. If more than one VECP is incorporated into a contract, the 
sharing period for each VECP need not be identical.
    (b) The sharing period begins with acceptance of the first unit 
incorporating the VECP. Except as provided in paragraph (c) of this 
section, the end of the sharing period is a specific calendar date that 
is the later of--
    (1) 36 to 60 consecutive months (set at the discretion of the 
contracting officer for each VECP) after the first unit affected by the 
VECP is accepted; or
    (2) The last scheduled delivery date of an item affected by the VECP 
under the instant contract delivery schedule in effect at the time the 
VECP is accepted.
    (c) For engineering-development contracts and contracts containing 
low-rate-initial-production or early production units, the end of the 
sharing period is based not on a calendar date, but on acceptance of a 
specified quantity of future contract units. This quantity is the number 
of units affected by the VECP that are scheduled to be delivered over a 
period of between 36 and 60 consecutive months (set at the discretion of 
the contracting officer for each VECP) that spans the highest planned 
production, based on planning and programming or production 
documentation at the time the VECP is accepted. The specified quantity 
begins with the first future contract unit affected by the VECP and 
continues over consecutive deliveries until the sharing period ends at 
acceptance of the last of the specified quantity of units.
    (d) For contracts (other than those in paragraph (c) of this 
subsection) for items requiring a prolonged production schedule (e.g., 
ship construction, major system acquisition), the end of the sharing 
period is determined according to paragraph (b) of this subsection. 
Agencies may prescribe sharing of future contract savings on all future 
contract units to be delivered under contracts awarded within the 
sharing period for essentially the same item,

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even if the scheduled delivery date is outside the sharing period.

[64 FR 51847, Sept. 24, 1999]