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Acquisition

Key Decision Point(KDP)

A formal review gate in the acquisition process where senior leadership decides whether a program may proceed to the next phase, requires changes, or should be terminated.

Overview

Key Decision Points (KDPs) are formal milestones in the defense and major acquisition life cycle where designated authorities — often the Milestone Decision Authority (MDA) — review program status, risk, and affordability before allowing a program to advance. Proceeding past a KDP typically requires documentation that technical, schedule, and cost baselines are executable.

Why It Matters in GovCon

Contractors on major programs must meet KDP exit criteria to avoid program delays or restructuring. Understanding where your project sits in relation to upcoming KDPs helps you prioritize deliverables, manage stakeholder expectations, and anticipate contract modifications or recompetes tied to milestone decisions.

Key Details

  • Phased Gate Reviews: Common in DoD 5000-series; programs proceed through Milestones A, B, and C.
  • Decision Options: Approve to proceed, conditional approval with specific actions, or no-go (restructure or terminate).
  • Documentation: Program managers submit acquisition strategy, risk assessment, and independent cost estimates.
  • Industry Role: Contractors provide technical data, test results, and cost proposals to support KDP packages.

Related Terms

  • Milestone Decision Authority (MDA)
  • Major Defense Acquisition Program (MDAP)
  • Acquisition Program Baseline (APB)
  • Defense Acquisition System

More Acquisition Terms

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