Contractor Performance Measurement: Overrun Contracts with Selected Comments on Problems of Implementation of the C/SCSC
DEFENSE SYSTEMS MANAGEMENT SCHOOL FORT BELVOIR VA
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The authors describe the present use of the performance baseline, and provide an alternative use that has limited acceptance at this time. They state that information based on original budget estimates, generated to meet government reporting requirements, is meaningful for only as long as the contractor continues to use internal budgets that sum to the original contract target cost. The essence of responsible decision-making is to base decisions on how well the contractor is performing to the most recent estimate rather than to the original historical budget.
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