Modification Management

Modification Management [Suggest Change]

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Primary Functional Area : Life Cycle Logistics

Definition [Suggest Change]

The term modification is defined in a number of ways by various DoD organizations. A few of those definitions include:


  • A configuration change to a produced Configuration Item (CI). Any modification that is of sufficient cost and complexity that it could itself qualify as an Acquisition Category (ACAT) I or ACAT IA program will be considered as a separate acquisition effort for management purposes. (DAU Glossary of Defense Acqusition Acronyms and Terms)
  • The alteration, conversion, or modernization of an end item or component of investment equipment that changes or improves the original purpose or operational capacity in relation to effectiveness, efficiency, reliability, or safety of that item. (Army Regulation 750-10 Army Modification Program)
  • A change to the form, fit, function, or interface (F3I) of an in-service, configuration-managed Air Force asset. A Configuration Item is a hardware, firmware, or software component, or combination thereof, that satisfies an end use function and is designated for separate configuration management. (Air Force Instruction 63-101)
  • Any configuration change to a produced configuration item regardless of cost or test requirements, e.g., engineering change proposals, pre-planned product improvements, upgrades, or technology enhancements… A modification to a program or system that is no longer an active ACAT program (i.e., a program that has achieved at least 90 per cent of total deliveries or has expended 90 per cent of total cost) should be treated as a separate program with its own assigned ACAT or AAP designation. (SECNAVINST 5000.2E)
  • A major modification is defined as a change to a weapon system or component to correct known safety issue or deficiency, or extends a service life, changes original design parameters, or expands system performance (DOD 7000.14-R Financial Management Regulation, Volume 2A, Chapter 1, Para 0102 Funding Policies)
  • The alteration, conversion, or modernization of an end item of investment equipment which changes or improves the original purpose or operational capacity in relation to effectiveness, efficiency, reliability or safety of that item. (DOD 7000.14-R Financial Management Regulation, Volume 2A, Chapter 1, Para 010224, Glossary of Terms, Procurement)

General Information/Narrative [Suggest Change]

DoD Components will…initiate system modifications, as necessary, to improve performance and reduce ownership costs, as constrained by 10 U.S.C. 2244a. (Source: DoDI 5000.02, Enclosure 6)


Title 10 US Code, Subtitle A, Part IV, Chapter 146, Subchapter § 2460 "Definition of depot-level maintenance and repair" states that "depot-level maintenance and repair means material maintenance or repair requiring the overhaul, upgrading, or rebuilding of parts, assemblies, or subassemblies, and the testing and reclamation of equipment as necessary, regardless of the source of funds for the maintenance or repair or the location at which the maintenance or repair is performed. The term includes all aspects of software maintenance classified by the Department of Defense as of July 1, 1995, as depot-level maintenance and repair, and interim contractor support or contractor logistics support (or any similar contractor support), to the extent that such support is for the performance of services described in the preceding sentence." The statute, however, goes on to list two major exceptions, namely that "the term (depot level maintenance and repair) does not include the procurement of major modifications or upgrades of weapon systems that are designed to improve program performance or the nuclear refueling of an aircraft carrier. A major upgrade program covered by this exception could continue to be performed by private or public sector activities. The term also does not include the procurement of parts for safety modifications. However, the term does include the installation of parts for that purpose."


How are modifications funded? According to Volume 2A, Chapter 1, Para 0102 "Funding Policies", of the DoD 7000.14-R Financial Management Regulation, "the costs of modification kits, assemblies, equipment, and material for modernization programs, ship conversions, major reactivations, major remanufacture programs, major service life extension programs, and the labor associated with incorporating these efforts into or as part of the end item are considered investments. All items included in the modification kit are considered investment even though some of the individual items may otherwise be considered as an expense. Components that were not part of the modification content at the outset and which are subsequently needed for repair are expenses. The cost of labor for the installation of modification kits and assemblies is an investment."


In addition,DoD 7000.14-R goes on to differentiate between technology refreshment/ insertion and modifications, and how they are funded, stating that "continuous technology refreshment is the intentional, incremental insertion of newer technology to improve reliability, improve maintainability, reduce cost, and/or add minor performance enhancement, typically in conjunction with depot or field level maintenance. The insertion of such technology into end items as part of maintenance is funded by the operation and maintenance appropriations. However, technology refreshment that significantly changes the performance envelope of the end item is considered a modification and, therefore, an investment."

Defense Acquisition Guidebook, Policies, Directives, Regulations, Laws [Suggest Change]

Best Practices, Lessons Learned, Stories, Guides, Handbooks, Templates, Examples, Tools [Suggest Change]

Guides and Handbooks

Tools and Templates

Training Resources [Suggest Change]

DAU Continuous Learning Site under the CLL (logistics) tab Life Cycle Logistics Career Field Certification & Core Plus Development Guides. A variety of DAU courses identified at all three levels of Defense Acquisition Workforce Improvement Act (DAWIA) certification address related topics such as maintenance planning, sustainment, product support and sustainment, modernization, and modification management

In addition, several related continuous learning modules are also available, including:

Communities [Suggest Change]

Life Cycle Logistics
Performance Based Logistics
Production, Quality & Manufacturing
Program Management
Requirements Management
Systems Engineering

Related Articles [Suggest Change]

Alternative Maintenance & Sustainment Concepts
Depot Level Maintenance
Depot Maintenance Statute - 10 USC 2460
Life Cycle Sustainment
Maintenance Levels
Maintenance Task Analysis (MTA)
Depot Activation and Capability Establishment
Public-Private Partnerships (PPP)
Performance Based Logistics (PBL) Overview
Technical Data Package (TDP)
Integrated Product Support (IPS) Elements
Integrated Product Support (IPS) Element - Supply Support

Attachments [Suggest Change]

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Page Views 8,522
Created on 12/30/2010
Modified on 1/15/2016
Last Reviewed 1/13/2016