Term -Future unit cost reduction

The instant unit cost reduction adjusted as the contracting
officer considers necessary for projected learning or changes in
quantity during the sharing period. It is calculated at the time the
Value Engineering Change Proposal (VECP) is accepted and applies
either–

    (1) Throughout the sharing
period, unless the contracting officer decides that recalculation is
necessary because conditions are significantly different from those previously anticipated, or

    (2) To the calculation of a lump-sum
payment, that cannot later be revised.

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