Part of your organization's bidding on a contract is determining the total cost of the work and your profit or fee for the contract. The contract costs are aggregated based on industry-standard pricing categories, and the aggregated values display on the Contract: Properties: Main - Pricing page.
The pricing categories include:
Defines the total contract price, based on the following formula:
Total Contract Price = Total Contract Cost + Profit/Fee
Defines the sum of all budgets for work on a contract. It includes the negotiated contract cost (NCC) plus the estimated cost of Authorized Unpriced Work (AUW). The total contract cost (TCC) is always equal to the contract budget base (CBB), except where there is an over target baseline (OTB).
Performance Management Baseline + Management Reserve. Defines the contract budget base, based on the following formula:
Contract Budget Base = Negotiated Contract Cost (NCC) + the Authorized Unpriced Work (AUW).
BAC (burdened except for FEE) + Undistributed Budget (UB). The Performance Measurement Baseline (PMB) is a time-phased budget plan against which project performance is measured. The performance measurement baseline is formed by the budgets that are assigned to scheduled control accounts and the applicable UB.
For future effort that is not planned to the control-account level, the PMB also includes budgets assigned to higher-level CWBS elements. The PMB is the sum of all the distributed budgets plus and UB. It does not include any management or contingency reserves, which are isolated above the PMB.
BAC for all CWBS elements. Distributed budget is a time-phased budget which has been distributed to control accounts (CA) or to a higher level WBS element, or functional elements (sometimes called summary level account budgets).
Defines the broadly defined activities that are not yet distributed to control accounts. You must manually enter this value.
Defines the amount held separately from your contract budget base that you set aside for changes in the work that is going to be executed on this contract. Throughout the course of a contract, as scope changes occur, money is taken out of the Management Reserve (MR) and distributed to the control accounts. Each time money is taken out of the MR, a log entry is added. The log is provided to help you keep track of all the money that has gone in and out in the management of the contract. You must manually enter this value.
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