Term -Instant unit cost reduction

Instant unit cost reduction means the amount of the decrease in unit cost of performance (without deducting any contractor”s development or implementation costs) resulting from using the Value Engineering Change Proposal (VECP) on the instant contract. In service contracts, the instant unit cost reduction is normally equal to the number of hours per line-item task saved by using the Value Engineering Change Proposal (VECP) on the instant contract, multiplied by the appropriate contract labor rate.

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