Management Reserves Account for cost and schedule uncertainty Reserve Percent Regression analysis Complexity factor uncertainty Off the shelf; hardware exists; no10% mods required Cost driver input uncertainty Time and material cost Modifications required to existing15% Vendor roms Should be held at management level New hardware but design passed20% Should not be used to accommodate CDR; vendor quotes scope changes New hardware but design passed25% PDR New design but within state of the35% art: Cost est from CERs vendor ROMs New design; remote analogs outside sotaManagement Reserves • Account for cost and schedule uncertainty – Regression analysis – Complexity factor uncertainty – Cost driver input uncertainty – Time and material cost – Vendor ROMs • Should be held at Management level • Should not be used to accommodate scope changes Development Status Reserve Percent Off the shelf; hardware exists; no 10% mods required Modifications required to existing 15% hardware New hardware but design passed 20% CDR; vendor quotes New hardware but design passed 25% PDR New design but within state of the 35% art; Cost est from CERs; vendor ROMs New design; remote analogs, outside SOTA 50%