12.1 GENERAL REQUIREMENTS

12.1.1 Requirement for Reporting. The inclusion in a Request for Tender or contract of a requirement to meet the Criteria is not, of itself, a requirement for the delivery of cost and schedule performance reports. Reporting requirements will be separately specified in the Request for Tender and in the contract. However, the five formats of the Cost Performance Report (CPR), see ANNEX G, are designed to report data from compliant systems and these are to be preferred for the appropriate types of contract. DEFPUR 101 provides for CPR reporting in contracts: see ANNEX A.

12.1.2 Reporting Data Source. Regardless of the type of report, the Criteria do require that the contractor uses data from approved management control systems for internal management control and for reports to the Project Authority.

12.1.3 Reporting Data. The Criteria require that the contractor's performance management control system must provide timely data which effectively relate cost, schedule and technical progress within the framework of the CWBS and the contractor's organisation. As a minimum, the contractor's system must be capable of providing, at least monthly, such information as:

a. BCWS, BCWP and ACWP;

b. actual indirect costs and budgeted indirect costs;

c. budgeted cost at completion and estimated cost at completion;

d. significant variances resulting from the analysis of these data. These variances should be identified in terms of labour rate and efficiency variances, material price and usage variances and deviations from overhead budgets, together with the reasons for the variances and the impact on the CWBS and organisational elements to which resources have been allocated;

e. cost and schedule variance trends, analysed and reconciled to the project cost at completion and projected contract milestone completion dates;

f. the time-based schedule, significant differences between the planned and actual achievements and the reasons for those differences;

g. narrative variance analysis including disclosure of significant contract/program problems, issues and corrective action taken and planned;

h. changes to the baseline and reasons;

i. manpower forecasts; and

j. changes to management reserve, undistributed budgets, and reasons.

12.1.4 Relationship with CWBS. A CWBS which has been prepared in accordance with guidance provided in US DoD MIL-STD-881 (latest reversion or as superseded by DEF(AUST) 5664) constitutes the basic framework against which the data items selected are to be reported by the contractor's management control system. Even though reported cost and schedule data may, for example, be required only at summary levels, all such data must comprise traceable accumulations which account for work performed and resources expended at appropriate lower levels.

12.1.5 Reporting Formats. Regardless of the format of reports negotiated, all performance measurement information must be derived from the contractor's internal management control systems.

12.1.6 Variance Reporting. When performance reports are required to be delivered, the Request for Tender and the Contract must specify the CWBS items to be reported and the variance thresholds (quantitative or exception) beyond which cost and schedule variances should be disclosed and discussed. (see ANNEX A) Separate variance thresholds will normally be negotiated at "cost" for current period, cumulative, and at completion data.