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Enclosure 4 -- Table 6. APB Policy

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DEFENSE ACQUISITION GUIDEBOOK
DoD Instruction 5000.02
Enclosure 4 -- Statutory and Regulatory Information and Milestone Requirements

4. The APB is an important document for program management and shall reflect the approved program being executed. It is the "Baseline Description" of the program and shall include sufficient parameters to describe the cost estimate (also referred to as the "Baseline Estimate" for MDAPs in section 2433 of Reference (k)), schedule, performance, supportability, and other relevant factors. An APB is required for all programs by paragraph 4.3.4 in Reference (b) and Table 2-1 of this Instruction. For MDAPs, sections 2433 and 2435 of Reference (k) provide specific requirements for unit cost reports and baseline descriptions. Table 6 contains statutory and regulatory APB policy.

Table 6. APB Policy.

Original Baseline Description or Original APB

  • The first APB approved by the MDA prior to a program entering EMD, or at program initiation, whichever occurs later
  • Serves as the current baseline description until a revised APB is prepared
  • Incorporates the KPPs verbatim from the CDD or CPD (if program initiation is at MS C)
  • The cost estimate parameter may be revised under section 2435 of Reference (k) only if a breach occurs that exceeds the critical cost growth threshold for the program under section 2433 of Reference (k) (Applicable to MDAPs only)

Current Baseline Description or Current APB

  • May be revised only:
    • at milestone and full-rate production decisions;
    • as result of a major program restructure that is fully funded and approved by the MDA; or
    • as a result of a program deviation (breach), if the MDA determines that the breach is primarily the result of an external cause beyond control of the PM
  • Circumstances authorizing changes are limited and revision to the current baseline estimate (i.e., the cost estimate) or other APB parameters is not automatically authorized if there is a change to cost, schedule, or performance parameters
  • Multiple revisions to the current APB will not be authorized
  • In no event will a revision to the current APB be authorized if proposed merely to avoid a reportable breach
  • The MDA determines whether to revise the APB

Significant Nunn-McCurdy Unit Cost Breaches

Applicable to MDAPs only

  • The cost growth threshold, as it relates to the current APB, is defined in section 2433 of Reference (k) to be an increase of at least 15 percent over the Program Acquisition Unit Cost (PAUC) or Average Procurement Unit Cost (APUC) for the current program as shown in the current Baseline Estimate
  • The cost growth threshold, as it relates to the original APB, is defined in section 2433 of Reference (k) to be an increase of at least 30 percent over the PAUC or APUC for the original program as shown in the original Baseline Estimate
  • Only the current APB shall be revised

Critical Nunn-McCurdy Unit Cost Breaches

Applicable to MDAPs only

  • The cost growth threshold, as it relates to the current APB, is defined in section 2433 of Reference (k) to be an increase of at least 25 percent over the current PAUC or current APUC for the current program as shown in the current Baseline Estimate
  • The cost growth threshold, as it relates to the original APB, is defined in section 2433 of Reference (k) to be an increase of at least 50 percent over the original PAUC or original APUC for the original program as shown in the original Baseline Estimate
  • Both the current and original APBs shall be revised to form a single "new original"APB that reflects the Nunn-McCurdy certification approved by the MDA

Deviations

  • Revising the current APB at milestone decisions and at full-rate production serves to update cost and schedule parameters based on knowledge developed during the current phase of the program
  • The PM shall immediately notify the MDA of a deviation from any parameter (cost, schedule, performance, etc.)
  • Within 30 days of occurrence of the deviation, the PM shall inform the MDA of the reason for the deviation and planned actions
  • Within 90 days of occurrence of the deviation
  • § A proposed revised APB shall be submitted for approval; or
  • § An OIPT or equivalent Component-level review shall be held to review the program
  • The MDA shall decide based on above criteria whether it is appropriate to approve a revision to an APB

MAIS Significant and Critical Program Changes

  • Definitions provided in Table 2-1, Note 4
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https://acc.dau.mil/UI/img/bo/minus.gifWelcome to the Defense Acquisition...
https://acc.dau.mil/UI/img/bo/plus.gifForeword
https://acc.dau.mil/UI/img/bo/plus.gifChapter 1 -- Department of Defense...
https://acc.dau.mil/UI/img/bo/plus.gifChapter 2 -- Program Strategies
https://acc.dau.mil/UI/img/bo/plus.gifChapter 3 -- Affordability and...
https://acc.dau.mil/UI/img/bo/plus.gifChapter 4 -- Systems Engineering
https://acc.dau.mil/UI/img/bo/plus.gifChapter 5 -- Life-Cycle Logistics
https://acc.dau.mil/UI/img/bo/plus.gifChapter 6 -- Human Systems Integration...
https://acc.dau.mil/UI/img/bo/plus.gifChapter 7 -- Acquiring Information...
https://acc.dau.mil/UI/img/bo/plus.gifChapter 8 -- Intelligence Analysis...
https://acc.dau.mil/UI/img/bo/plus.gifChapter 9 -- Test and Evaluation (T&E)
https://acc.dau.mil/UI/img/bo/plus.gifChapter 10 -- Decisions Assessments and...
https://acc.dau.mil/UI/img/bo/minus.gifChapter 11 -- Program Management...
https://acc.dau.mil/UI/img/bo/plus.gif11.0. Overview
https://acc.dau.mil/UI/img/bo/plus.gif11.1. Joint Programs
https://acc.dau.mil/UI/img/bo/plus.gif11.2. International Programs
https://acc.dau.mil/UI/img/bo/plus.gif11.3. Integrated Program Management
https://acc.dau.mil/UI/img/bo/plus.gif11.4. Knowledge-Based Acquisition
https://acc.dau.mil/UI/img/bo/plus.gif11.5. Technical Representatives at...
https://acc.dau.mil/UI/img/bo/plus.gif11.6. Contractor Councils
https://acc.dau.mil/UI/img/bo/plus.gif11.7 Property
https://acc.dau.mil/UI/img/bo/plus.gif11.8. Modeling and Simulation (M&S)...
https://acc.dau.mil/UI/img/bo/plus.gifChapter 12 - Defense Business System...
https://acc.dau.mil/UI/img/bo/plus.gifChapter 13 -- Program Protection
https://acc.dau.mil/UI/img/bo/minus.gifChapter 14 -- Acquisition of Services
https://acc.dau.mil/UI/img/bo/plus.gif14.0. Overview
https://acc.dau.mil/UI/img/bo/plus.gif14.1. Introduction to the Acquisition of...
https://acc.dau.mil/UI/img/bo/plus.gif14.2. The Planning Phase
https://acc.dau.mil/UI/img/bo/plus.gif14.3. The Development Phase
https://acc.dau.mil/UI/img/bo/plus.gif14.4. The Execution Phase
https://acc.dau.mil/UI/img/bo/plus.gifAppendix A -- REQUIREMENTS ROADMAP...
https://acc.dau.mil/UI/img/bo/plus.gifAppendix B -- SERVICE ACQUISITION...
https://acc.dau.mil/UI/img/bo/plus.gifAppendix C -- SERVICE ACQUISITION MALL...
https://acc.dau.mil/UI/img/bo/plus.gifAppendix D -- MARKET RESEARCH RESOURCES
https://acc.dau.mil/UI/img/bo/plus.gifAppendix E -- GLOSSARY
https://acc.dau.mil/UI/img/bo/minus.gifDoD Directive 5000.01
https://acc.dau.mil/UI/img/bo/plus.gifENCLOSURE 1 ADDITIONAL POLICY
https://acc.dau.mil/UI/img/bo/minus.gifDoD Instruction 5000.02
https://acc.dau.mil/UI/img/bo/plus.gifTABLE OF CONTENTS
https://acc.dau.mil/UI/img/bo/minus.gifEnclosure 1 -- References
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 2 -- Procedures
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 3 -- Acquisition Category...
https://acc.dau.mil/UI/img/bo/minus.gifEnclosure 4 -- Statutory and Regulatory...
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 4 -- Table 2-1. Statutory...
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 4 -- Table 2-2. Statutory...
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 4 -- Table 3. Regulatory...
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 4 -- Table 4. Regulatory...
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 4 -- Table 5. EVM...
https://acc.dau.mil/UI/img/bo/minus.gifEnclosure 4 -- Table 6. APB Policy
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 4 -- Table 7. Unique Decision...
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 5 -- IT Considerations
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 6 -- Integrated T&E
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 7 -- Resource Estimation
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 8 -- Human Systems Integration...
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 9 -- Acquisition of Services
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 10 -- Program Management
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 11 -- Management of Defense...
https://acc.dau.mil/UI/img/bo/plus.gifEnclosure 12 -- Systems Engineering
https://acc.dau.mil/UI/img/bo/plus.gifRecent Policy and Guidance
https://acc.dau.mil/UI/img/bo/plus.gifCurrent JCIDS Manual and CJCSI 3170.01 I
https://acc.dau.mil/UI/img/bo/plus.gifDefense Acquisition Guidebook Key...
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