[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR48]



[Page 916]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 48_VALUE ENGINEERING--Table of Contents

 

                  Subpart 48.1_Policies and Procedures

 

48.104-1  Determining sharing period.



    (a) Contracting officers must determine discrete sharing periods for 

each VECP. If more than one VECP is incorporated into a contract, the 

sharing period for each VECP need not be identical.

    (b) The sharing period begins with acceptance of the first unit 

incorporating the VECP. Except as provided in paragraph (c) of this 

section, the end of the sharing period is a specific calendar date that 

is the later of--

    (1) 36 to 60 consecutive months (set at the discretion of the 

contracting officer for each VECP) after the first unit affected by the 

VECP is accepted; or

    (2) The last scheduled delivery date of an item affected by the VECP 

under the instant contract delivery schedule in effect at the time the 

VECP is accepted.

    (c) For engineering-development contracts and contracts containing 

low-rate-initial-production or early production units, the end of the 

sharing period is based not on a calendar date, but on acceptance of a 

specified quantity of future contract units. This quantity is the number 

of units affected by the VECP that are scheduled to be delivered over a 

period of between 36 and 60 consecutive months (set at the discretion of 

the contracting officer for each VECP) that spans the highest planned 

production, based on planning and programming or production 

documentation at the time the VECP is accepted. The specified quantity 

begins with the first future contract unit affected by the VECP and 

continues over consecutive deliveries until the sharing period ends at 

acceptance of the last of the specified quantity of units.

    (d) For contracts (other than those in paragraph (c) of this 

subsection) for items requiring a prolonged production schedule (e.g., 

ship construction, major system acquisition), the end of the sharing 

period is determined according to paragraph (b) of this subsection. 

Agencies may prescribe sharing of future contract savings on all future 

contract units to be delivered under contracts awarded within the 

sharing period for essentially the same item, even if the scheduled 

delivery date is outside the sharing period.



[64 FR 51847, Sept. 24, 1999]