Term -Acquisition savings

Savings resulting from the application of a value engineering change
proposal (Value Engineering Change Proposal (VECP)) to contracts
awarded by the same contracting office or its successor for essentially
the same unit. Acquisition savings include–

    (1) Instant contract savings,
that are the net cost reductions on the contract under which the Value
Engineering Change Proposal (VECP) is submitted and accepted, and that
are equal to the instant unit cost reduction multiplied by the number
of instant contract units affected by the Value Engineering Change
Proposal (VECP), less the contractor”s allowable development and
implementation costs;

    (2) Concurrent
contract savings, that are net reductions in the prices of other
contracts that are definitized and ongoing at the time the Value
Engineering Change Proposal (VECP) is accepted; and

    (3) Future contract savings, that are
the product of the future unit cost reduction multiplied by the number
of future contract units in the sharing base. On an instant contract,
future contract savings include savings on increases in quantities
after Value Engineering Change Proposal (VECP) acceptance that are due
to contract modifications, exercise of options, additional orders, and
funding of subsequent year requirements on a multiyear contract.

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