DI-MGMT-82105

Minimum Sustaining Rate (MSR) and Economic Order Quantity (EOQ) Report

The MSR and EOQ Report gives the Government vital production and budget information to help manage the procurement, as required by 10 USC 2431.

Approval DateMarch 22, 2017

AMSC NumberN9778

Preparing ActivitySH

Project NumberMGMT-2017-012

OPR—

DTIC Applicable—

GIDEP Applicable—

Limitation—

Applicable Forms—

Approval Limitation—

Form Version—

DID Formatfree_text

963C CompliantYes

DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited.

Supersedes

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Description & Purpose

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Application & Interrelationship

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Use & Relationship

The MSR and EOQ Report provides the Government with vital information to be used for production and budget purposes to help manage the procurement. Additionally, the information contained within this report is required by 10 USC 2431 - Weapons development and procurement schedules.

This DID contains the format and content preparation instructions for the data product generated by the work task described in the contract SOW.

Preparation Instructions

1Reference documents.The applicable issue of the documents cited herein, including their approval dates and dates of any applicable amendments, notices, and revisions, shall be as specified in the contract.

2Format:The report shall be in the contractor's format.

3Content:The report shall contain a cover page identifying the following:

3.1Report Title

3.2Date and revisions number

3.3Contract number

3.4Contractor's name, address and CAGE Code

3.5Security Classification (if applicable)

3.6Minimum Sustaining Rate.The report shall contain the lowest monthly production rate, for each budget year, on a 1 shift/day, 8 hours/day, 5 days/week (1-8-5) basis at which this business entity can keep production lines open while maintaining a base of responsive vendors and suppliers.

3.7The Economic Order Quantity (EOQ).The report shall contain the maximum rate for each budget year at which the weapon system can be produced with existing or planned plant capacity and tooling, on a 1-8-5 basis.

3.8The report shall contain detailed rationale as to how the MSR and EOQ numbers were calculated.

References

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