C1.2.1. Each parameter shall have a
threshold value and an objective value.
C126.96.36.199. For performance, "threshold"
shall mean the minimum acceptable value that, in the user's judgment, is
necessary to satisfy the need. For schedule and cost, "threshold" shall
mean the maximum allowable value. If performance threshold values are not
achieved, program performance may be seriously degraded, and the utility
of the system may become questionable. If schedule threshold values are
not achieved, the program may no longer be timely. If cost threshold
values are not achieved, the program may be too costly, and the
affordability of the system may become questionable.
C188.8.131.52. The objective value is the
value desired by the user, and the value the Program Manager (PM) tries to
obtain. The objective value represents an incremental, operationally
meaningful, time-critical, and cost-effective improvement to the threshold
value of each program parameter.
C184.108.40.206. Program goals (parameters and
values) may be refined based on the results of the program.s preceding
C220.127.116.11. For each parameter, if no
objective is specified, the threshold value shall also serve as the
objective value. As a general rule, if no threshold is specified, the
performance objective value shall also serve as the performance threshold
value; the schedule objective value plus 6 months for Acquisition Category
(ACAT) I or 3 months for ACAT IA shall serve as the schedule threshold
value; or the cost objective value plus 10 percent shall serve as the cost
threshold value. Despite these guidelines, if no threshold is specified,
the PM may propose an appropriate threshold value to optimize program
trade-space, subject to Milestone Decision Authority (MDA) and user
C1.2.2. Maximizing PM and
contractor flexibility to make cost/performance trade-offs is essential to
achieving cost objectives. Trade-offs-within the objective-to-threshold
"trade space"-shall not require higher-level permission, but shall require
coordination with the operational requirements developer. The operational
requirements developer shall strictly limit the number of threshold and
objective items in requirements documents and acquisition program baselines
(APBs). Performance threshold values shall represent true minimums, with
requirements stated in terms of capabilities rather than as technical
solutions and specifications. Cost threshold values shall represent true
maximums. Cost objectives shall be used as a management tool.
When a program has time-phased requirements and utilizes an evolutionary
acquisition strategy, each block shall have a set of parameters with
thresholds and objectives specific to the block.