Bill of Materials(BOM)
A comprehensive list of raw materials, components, and quantities needed to manufacture or assemble a product for a government contract.
Overview
A Bill of Materials (BOM) is an itemized inventory of all raw materials, parts, subassemblies, and quantities required to manufacture a finished product. In government contracting, BOMs support cost proposals, production planning, supply chain management, and compliance with domestic sourcing requirements such as the Buy American Act and Trade Agreements Act.
Why It Matters in GovCon
Accurate BOMs are essential for cost estimating, contract compliance, and supply chain transparency. Agencies may require detailed BOMs to verify pricing reasonableness, assess domestic content percentages, and ensure contractors can sustain production throughout the contract period. Errors in BOMs can lead to cost overruns, delivery delays, and compliance violations.
Key Details
- Structure: BOMs can be single-level (flat list) or multi-level (hierarchical with subassemblies), depending on product complexity.
- Cost Proposals: BOMs form the foundation of material cost estimates in contract proposals and are scrutinized during cost audits.
- Domestic Content: Required to demonstrate compliance with Buy American Act percentages for manufactured goods.
- Configuration Management: BOMs must be maintained and updated as engineering changes occur during production.
- DFARS Requirements: Defense contracts may require BOM data as part of CDRL deliverables.
Related Terms
- Buy American Act (BAA)
- Trade Agreements Act (TAA)
- Contract Data Requirements List (CDRL)
- Cost Proposal
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