A1. The Defence Purchasing Manual (DEFPUR 101) contains standard clauses concerning CSCSC that may be included in RFTs and Contracts when required. Samples of the relevant clauses are shown below.

REQUEST FOR TENDER CLAUSES.

7.8 Cost Schedule Control System (Optional Clause)

7.8.1 The successful tenderer will be required to maintain and use a Cost Schedule Control System (CSCS) within the contract price in accordance with Clause 12.4 in the draft Contract. For the purposes of evaluation tenderers are to submit with their tenders information detailing and/or substantiating a description of the general organisation, management and procedures designed to comply with the specified CSCS standards.

7.8.2 Tenderers are required:

a. to submit at Annex C, DID 029, a declaration that all existing management procedures have been examined by tenderers to establish their suitability for meeting the Cost Schedule Control requirements contained within this Request for Tender; and

(i) if the existing system is found to be suitable, tenderers provide a declaration that the existing system complies with the requirements; or

(ii) if shortcomings are found in the existing procedures, tenderers are to document such shortcomings and provide details of proposed corrective action; and

b. to submit to an assessment by the Commonwealth, on site if necessary, of their Cost Schedule Control System for compliance with, or potential to comply with, the specified standards as part of the tender evaluation.

7.9 Contract Work Breakdown Structure (CWBS) (Optional Clause)

7.9.1 The successful tenderer will be required to comply with principles set forth in the version current at the Effective Date of US MIL-STD-881, Work Breakdown Structures For Defense Materiel Items. Tenderers are to propose at Annex C, DID 030, a preliminary CWBS based on the summary Work Breakdown Structure detailed in the Statement of Requirement. Tenderers shall extend this summary WBS in as much detail as necessary to identify the structure of the work effort to successfully achieve the end objective of the contract."

DRAFT CONTRACT CLAUSES.

12.4 Cost Schedule Control System (Optional Clause)

12.4.1 Within the period specified in the Contract Schedule, the Contractor's Cost Schedule Control Systems meet, and thereafter continue to meet, Australian Cost Schedule Control Systems Criteria DEF(AUST)5655. The processes described in the Australian Cost Schedule Control Systems Implementation Guide, DEF(AUST)5657 for the review and acceptance of the Contractor's Cost Schedule Control Systems are followed by the parties.

12.4.2 The Contractor facilitates surveillance of its Cost Schedule Control Systems in accordance with the Australian Cost Schedule Control Systems Implementation Guide, DEF(AUST)5657.

12.5 Contract Work Breakdown Structure (CWBS) (Optional Clause)

12.5.1 The Contractor complies with the principles set forth in the version current at the Effective Date of US MIL-STD-881 Work Breakdown Structure (WBS) For Defense Materiel Items. The summary WBS detailed in the Statement of Work and Dictionary form the basis for preparation of the CWBS by the Contractor.

12.5.2 The Contractor:

a. within 60 days of the Effective Date, extends the summary WBS in as much detail as necessary to identify the structure of the work effort and define Cost Accounts; and

b. within 120 days of the Effective Date, extends the summary WBS in as much detail as required to define the work effort necessary to successfully achieve the end objective of the Contract.

12.5.3 On approval of the CWBS by the Project Authority, it;

a. is used by the Contractor as the framework for Contract planning, management and status reporting, and for estimating cost, schedule and technical achievements;

b. describes its elements in a CWBS Dictionary and Index which have specific identification to discrete items of the Supplies and any specification(s) contained in the Statement of Work; and

c. is used in production of the Supplies and represents all the Contractor's costs.

12.5.4 The Contractor identifies subcontractor activities in a WBS separate from, but integrated into and identifiable within, the CWBS.

12.5.5 Prior approval to change to CWBS is not required for elements below the reporting level provided the Project Authority is notified within 60 days of the changes being made, and the changes are consistent with the summary WBS and US MIL-STD-881.

12.5.6 The Dictionary for the CWBS is progressively expanded by the Contractor as required for the management of the work under the Contract. Lower levels of the CWBS are developed to delineate Cost Account packages which are identified and maintained in a responsibility assignment matrix.

12.6 Cost Schedule Performance Reporting (Optional Clause)

12.6.1 The Contractor submits to the Project Authority a monthly Cost Performance Report (CPR), in CPR Formats 1, 2, 3, 4 and 5 in accordance with the United States Department of Defense.

12.6.2 CPR Format 1 displays data for elements of the CWBS:

Level 1: All

Level 2: All

Level 3: WBS

WBS

etc....

12.6.3 The threshold for variance reports in CPR Format 5 is determined by percentage and/or currency variation and varies with the Contract progress as follows:

Project%      %Margin     and/or     $Threshold

Complete       (+/-)



0-25%

26-75%

76-100%

12.6.4 The Contractor submits the report to the Project Authority within 14 days of the expiry of each month. The report may reflect data at the end of the month or other accounting period used by the Contractor, but so as to be consistent throughout the work under the Contract.

12.6.5 If the Project Authority notifies the Contractor on the basis of any Cost Performance Report that it has failed to maintain satisfactory progress in work under the Contract, the Contractor takes such measures as are necessary to reestablish progress to the satisfaction of the Project Authority. The Contractor advises the Project Authority of the measures taken and reflects the results of such measures in subsequent reports.

12.6.6 Any reports submitted by the Contractor in relation to a Cost Schedule Control System that is not validated contain a notation to that effect.

12.7 Subcontractor Cost Schedule Control Requirements (Optional Clause)

12.7.1 CSCSC Flowdown. If the subcontract requires work in excess of 12 months and the subcontract price exceeds $40m for development contracts and $100m for all other contracts, the subcontractor maintains and uses in the performance of the subcontract a Cost Schedule Control System in the same terms as required of the Contractor under the Contract and as described in the Australian Cost Schedule Control Systems Implementation Guide (ACSIG), DEF (AUST) 5657.

12.7.2 CSSR Flowdown. The Contractor shall require subcontracts who are likely to be engaged in work in excess of 12 months and the subcontract price exceeds $20m, but is less than $40m for development contracts and $100m for all other subcontracts to operate a Cost Schedule Status Reporting system in accordance the Cost Schedule Status Report Specification and Implementation Guide DEF(AUST)5658.

12.7.3 The Project Authority may require, as a condition to the approval of any subcontract, that the subcontract contains provisions requiring the subcontractor to furnish to the Contractor Cost Performance Reports as follows:

a. if the subcontract requires work in excess of 12 months and subcontract price exceeds $40m for development contracts and $100m for all other contracts, the subcontractor provides a Cost Performance Report in CPR Formats 1, 2, 3, 4, and 5;

b. if the subcontract requires work in excess of 12 months with a subcontract price of more than $20m but less than $40m for a development contract and less than $100m for all other contracts, the subcontractor provides a Cost Performance Report in CPR Formats 1, 3 and 5; and

c. if the subcontract contains critical tasks agreed between the Contractor and the Project Authority, the subcontractor provides Cost Performance Reports in CPR Formats 1, 3 and 5.

12.7.4 The Contractor incorporates data from subcontractor's cost performance reports required by the Contract in its own cost performance reports to the Project Authority, and upon request, provides the Project Authority with a copy of the subcontractor's reports.

12.7.5 The Contractor establishes procedures which furnish for all subcontractors others than those which are required to provide cost performance reports:

a. adequate indicators of subcontractors performance; and

b. identification, cause and impact of subcontractor schedule or technical problems.