(b) HOW TO DETERMINE WHO MUST APPROVE THE VALIDATION FINDINGS

(1) Step One: Compare the Validated Multi-year Savings to the Savings Estimate in the MJP.

(i) Look at Exhibit MYP-3, Contract Funding Plan, in the Savings Validation Package (prepared in accordance with the guidance in Chapter 15). The validated multi-year savings is the dollar amount shown in the "Savings" row under "Total." To express this in terms of a percentage, divide the savings by the total cost of the annual-buy alternative.

(ii) Look at Exhibit MYP-3, Contract Funding Plan, in the MJP that was previously submitted to Congress. The estimated multi-year savings is the dollar amount shown in the "Savings" row under "Total." To express this in terms of a percentage, divide the savings by the estimated total cost of the annual-buy alternative.

(iii) Is the dollar amount of the validated multi-year savings higher, equal to, or lower than the savings estimated in the MJP?

(2) Step Two: Note the "Present Value" of the Validated Multi-year Savings.

(i) Look at Exhibit MYP-4, Present Value Analysis, in the Savings Validation Package. Is the Present Value of the savings positive (i.e., greater than zero) or negative (i.e., less than zero)?

(3) Step Three: Consult Current Governing Regulations, Policy, and Congressional Direction.

(i) In Steps One and Two, you compiled the following data:

 

 

Relevant Data

 

 

Validated Savings (Dollars)

Savings Estimated in MJP (Dollars)

Validated Savings (Percent)

Savings Estimated in MJP (Percent)

Present Value of Validated Savings

Based on this data, your situation falls into one of the following categories:

 

(A) CATEGORY I:

Validated Savings  > MJP Savings Estimate (Dollars) and
Validated Savings  
> MJP Savings Estimate (Percent) and
Present Value Positive

 

(B) CATEGORY II:

Validated Savings  < MJP Savings Estimate (Dollars) or
Validated Savings  
< MJP Savings Estimate (Percent) and
Present Value Positive

 

(C) CATEGORY III:

Present Value Positive

 

 

Figure 16

(ii) The approval level for the validation findings required by regulation and policy are dependent on the category as determined from Steps One and Two. It should be noted that these approval levels may be superseded by specific Congressional direction that may be included in the Authorization Act, Appropriations Act, and/or Congressional Committee Reports. Consult 10 USC 2306b, FAR 17.1, DFARS 217.1, AFFARS 5317.1, PL 105-56, and PL 105-85 to ensure you have identified the correct approval level.