Acquisition Program Baseline(APB)
A documented set of cost, schedule, and performance parameters that establishes approved objectives for a major defense acquisition program.
Overview
The Acquisition Program Baseline (APB) is a formal agreement between the Program Manager and the Milestone Decision Authority that documents the cost, schedule, and performance thresholds and objectives for a defense acquisition program. It serves as the benchmark against which program progress is measured and reported to Congress and senior leadership.
Why It Matters in GovCon
APB parameters directly shape contract requirements, delivery timelines, and budget availability. Contractors working on Major Defense Acquisition Programs (MDAPs) should understand how APB thresholds affect program stability. A breach of an APB threshold can trigger a Nunn-McCurdy review, potentially resulting in program restructuring or cancellation.
Key Details
- Thresholds vs. Objectives: Objectives are desired targets; thresholds are minimum acceptable values that trigger reporting if breached.
- Nunn-McCurdy: A cost breach of 25% or more over the current APB baseline triggers a critical Nunn-McCurdy notification to Congress.
- Updates: APBs are revised at each milestone decision point as programs mature and estimates are refined.
- Content: Covers unit cost, total acquisition cost, schedule milestones, and key performance parameters (KPPs).
- Oversight: The Under Secretary of Defense for Acquisition and Sustainment (USD(A&S)) approves APBs for major programs.
Related Terms
- Major Defense Acquisition Program (MDAP)
- Milestone Decision Authority (MDA)
- Program of Record (POR)
- Key Performance Parameter (KPP)
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