3.1.2  Addressing Risks

If addressing the risks in a program means that you must prolong the source selection while you readjust an inadequate budget, find additional financial and personnel resources, or renegotiate with the user, then this must be your course of action.  Failure to do so may lead to unfunded cost overruns during program performance or eventual cancellation of the program.  The bottom line is that prospective contractors and program managers must strive to uncover and address risks as early as possible, so that, together with the user, the Program Office3 can make an informed decision on whether the Government can afford a program, whether a program is worth the additional costs, and whether it is technically achievable.

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3 Reference to Program Office is synonymous with Requiring Organization throughout this document.