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Allowable Cost - to - Approval to Proceed

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Definition     Editor's Choice
Allowable Cost
A cost that can be recovered for the performance of a contract. [D05880]

A cost that meets the tests of:
  1. Reasonableness.
  2. Relevance to the contract.
  3. Accounting in accordance with standards promulgated by the Cost Accounting Standards Board, if applicable; otherwise, generally accepted accounting principles and practices appropriate to the particular circumstances.
  4. The terms of the contract.

An amount set aside, usually time or money.
Editor's Note: There are different types of allowances, e.g. Contingency Allowance, Scope Allowance or Contingency Reserve [D02371]

Alternate Resource
A resource that may be substituted as the requirement for an activity if the requested resource is not available. [D00075]

Alternative Analysis
Breaking down a complex scope situation for the purpose of generating and evaluating different solutions and approaches. [D00076]

Alternative Dispute Resolution ("ADR")
Any procedure or combination of procedures voluntarily used to resolve issues in controversy without the need to resort to litigation. These procedures may include, but are not limited to, assisted settlement negotiations, conciliation, facilitation, mediation, fact-finding, mini-trials, and arbitration. [D03797]

Review of the means available and the impact of trade-offs to attain the objectives. [D00077]

Something that is likely to be interpreted in more than one way.
Editor's Note: An important part of a project manager's job is to seek clarity and hence avoid ambiguity. [D02373]

Contract language that can be understood to have more than one reasonable meaning. [D05881]

A change in a solicitation prior to contract award. [D03798]

Amount at Stake
The severity or extent of adverse consequences which could occur to the project. For example, the cost of recovery from lost production, plus the cost of recovering from the delay, etc. [D00078]

See Advanced Material Release

Analogous Estimating
See Parametric Estimating. [D05607]

The study and examination of something complex and separation into its more simple components. Analysis typically includes discovering not only what are the parts of the thing being studied, but also how they fit together and why they are arranged in this particular way. A study of schedule variances for cause, impact, and corrective action. [D00079]

A careful, detailed and often formal study designed to uncover pertinent information. [D05248]

The part of the software development process whose primary purpose is to formulate a model of the problem domain. Analysis focuses on what to do; design focuses on how to do it. See design. [D04681]

Analysis and Design
A discipline in the Unified Process, whose purpose is to show how the system's use cases will be realized in implementation; (general) activities during which strategic and tactical decisions are made to meet the required functional and quality requirements of a system. For the result of analysis and design activities, see Design Model. [D04794]

Analysis Time
Refers to something that occurs during an analysis phase of the software development process. See design time, modeling time. [D04682]

Member of the project team who is responsible for eliciting and interpreting the stakeholder needs, and communicating those needs to the entire team. [D04683]

AND Relationship
Logical relationship between two or more activities that converge on or diverge from an event.
Note: The AND relationship indicates that every one of the activities has to be undertaken. [D04380]

Based on hearsay rather than on demonstrated facts, hard data or personal experience. [D02374]

Something abnormal or unexpected, a deviation [D05249]

Anticipated Award Cost
The most probable contract price at time of tender and award. It forms part of the forecast to complete. See Cost Types. [D00080]

See Activity on Arc

See Activity on Arrow

See Activity on Node

See Average Outgoing Quality

See Average Outgoing Quality Limit

See Area of Project Management Application

Apparent Low Bidder
The contractor who has submitted the lowest compliant bid for all or part of a project as described in a set of bid documents. [D00081]

An act of putting to use (new techniques): an act of applying techniques. [D00082]

Application Area
A category of projects that have common elements not present in all projects. Application areas are usually defined in terms of either the product of the project (i.e., by similar technologies or industry sectors) or the type of customer (e.g., internal vs. external, government vs. commercial, etc.). Application areas often overlap. [D00083]

Application for Expenditure ("AFE")
A formal document presented to management to permit the expenditure of funds, typically supported by appropriate justification documentation. See also Application for Expenditure Justification. [D02375]

Application for Expenditure Justification
The formal documentation required to support an Application for Expenditure. Typically a submission requesting funding to undertake the "Implementation" and "Commissioning, Startup & Completion" Phases of a capital project. It represents complete summary documentation of the project up to that point and is required by management to enable an appropriate decision to be made concerning continuation of the project and to ensure that a proper basis has been established for the conduct of the project during those ensuing phases. [D00070]

Application Programmers
Those programmers responsible for the development of function and industry relevant software that is determined by their employer's particular business (for example, banking, aerospace, stock brokerage, insurance, accounting, inventory). [D00084]

 SPM p304-9
Applied Direct Costs
The actual direct costs recognized in the time period associated with the consumption of labor, material, and other direct resources, without regard to their date of commitment or the date of payment. [D04612]

Applied Rates
Rates used for management purposes. Applied rates may be different from actual due to confidentiality (e.g. pay rates) or estimated (to add contingency.) [D05250]

Apportioned Effort
Effort directly related to some other measured effort. [D04613]

Effort that is not itself readily divisible into short-span work packages but which is related and proportional to measured effort in other work packages. Project management overhead is an example. [D02273]

Apportioned Task
A task that is dependent on or related to the performance of another task. [D03982]

An impartial evaluation of information concerning a system, service or product to determine its measure of effectiveness and efficiency for purposes of making recommendations for acceptance, correction, or preventive action. [D02274]

To evaluate the worth, significance, or status of. Baseline - A specification or product that has been formally reviewed and agreed upon, that thereafter serves as the basis for further development, and that can be changed only through formal change control procedures. [D05164]

A way of doing things. For example, project planning may require different approaches, or different approaches may be considered as a way of reducing Project Risks [D02376]

Approach Statement
A high-level description of how the project will accomplish its goals and objectives. [D05608]

Money formally set apart for a predetermined use (e.g. a project). [D05251]

An allocation of funds to a project by the owner or sponsor in response to a Capital Appropriation Request (CAR) or a Request For Appropriation (RFA). In a structured organization, a commitment cannot be made until an appropriation has been obtained. However, a lower threshold value may be set below which a formal appropriation is not required. Prefeasibility and similar studies are such examples. [D00085]

Appropriation Estimate
An estimate prepared to establish a budget to be included in an application for project funding (i.e. for an "appropriation" of funds from corporate sources). Prepared from the best available, but not necessarily complete, information. Also known as a Budget Estimate. [D05156]

Appropriation of Funds
The acts of preparing for and approving the assignment of a budgetary amount to a proposed commitment or class of commitments. This act is triggered as either a part of the process to initiate and approve a purchase requisition, or as part of the bid recommendation and contract award process. [D06367]

A process for sanctioning a proposed course of action usually following some form of review. It should involve the transfer of the necessary supporting Authority and Responsibility with the expectation of Reliability and Accountability. [D02377]

Approval to Proceed
The term used when:
  1. Approval is given to the project at initiation or prior to the beginning of the next phase.
  2. An individual accepts a deliverable as fit for purpose so that the project can continue.

Approval by the sponsor or project board at first initiation or prior to the beginning of the next project phase. [D00086]

This approval is given by the Project Board at Project Initiation and at each End Stage Assessment prior to commencement of the next Stage. It represents a commitment to a further expenditure up to the end of the next stage of the Project. [D03589]

Definitions for page A04: 52

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