Reporting/Approval of Scope & Cost Variations (Authorization)

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Purpose:  This process describes how the total Army team (GD, COS, MSC, HQUSACE, Installation,


  • FY08 MCA/UMMCA/AFH/BRAC Execution Guidance Memo, 10 Apr 08
  • AR 420-1, Army Facilities Management, 12 Feb 08
  • 10 USC 2853
  • FY08 NDAA, Section 2704 (P.L. 110-181, 28 Jan 08)
  • FRAGO 16 (FY 08 Mil Pgms Construction CWE/Funds Request Calculation Spreadsheet) to OPORD 2007-20


  1. AR 420-1 describes the processes and requirements for reporting variations to the Congressional authorized cost and scope.  The statutory notification thresholds are:

     Notification to MCA BRAC
     Congressional Defense Committies Less than 75% of Primary physical scope on DD1391. Notify 14 days prior to award. Less than 75% of Primary physical scope on DD1391. Notify 14 days prior to award.
  Comprehensive CWE less than 75% of PA or $4M below PA (whichever is less). Notify up to 14 days after award. Comprehensive CWE greater than 120% of PA or $2M above PA (whichever is less)
  Comprehensive CWE less than 80% of PA or $2M below PA (whichever is less)
  Notify 14 days prior to award.
     Approval Authority Limits of Approval Authroity (Authorization) Limits of Approval Authroity (Authorization)
     Congress Above 125% of PA or $4M above PA Above 120% of PA or more that $2M above PA
  1. If scope reduction or use of optional bid items cannot resolve the CWE/PA issue, ACSIM may decide to pursue reprogramming approval. The FY08 MCA execution guidance memo summarizes the requirements and the general procedures.

  2. Per instructions in FRAGO 16, the CWE spreadsheet will document all contracts associated with the project. The GD PM is responsible for documenting the CWE/PA issue in the P2 Issues comment field.

  3. The Project Manager is responsible for providing all necessary information to the RIT, through the MSC. The RIT is responsible for providing the necessary documentation to the ACSIM when requesting Code 9 (Authority to Award).

  4. As required, IMCOM will provide information to OACSIM on the need for the facilities and any associated impacts.

Process Owner:  HQUSACE PID (Maryann Delaney/202-761-5775)
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