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Contract 2034 required GENDYN to furnish the ACO with
certain periodic reports, including a Quarterly Limitation of
Payment Report, which contained information regarding GENDYN's
performance under the entire contract as well as information
pertaining to each program year. Information pertaining to
individual program years was requested and used in connection
with the available funding. Another report that GENDYN was
required to submit on a monthly basis was the Cost Performance
Report, or “CPR”, which tracked GENDYN's projected cost at
completion versus target costs for each program year. To derive
program year cost estimates for the CPR’s, GENDYN broke down, by
program year, its estimate of the total cost. The cost estimate
for 1 program year was on the basis that aircraft in the other
program years would be manufactured. CPR’s were not audited by
the Defense Contract Audit Agency. Monthly Contract 2034 profit
estimates could become inaccurate due to later occurring events
not known at the time of the estimate.
GENDYN also submitted, on a monthly basis, a Contract Cost
and Profit Summary or “CCPS”. The CCPS was derived from and
contained information similar to the CPR. Thus, the CCPS, like
the CPR, included breakdowns of GENDYN's estimated costs by
program year. GENDYN's program office used the CCPS as one means
of assessing how well GENDYN was performing on its contracts.
The CCPS was not used, however, for financial reporting purposes.
The Air Force used the CPR’s as program management tools, not as
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