Review and comment on the use of management reserve to fund authorized, but not negotiated, contract changes. Comment on their change negotiations.

\fContract Ehanges Gustavson inquired about the nature and extent of changes to the ACCENS contract. Page reported that. in total, about $3 million worth of negotiated changes had been processed As to their handling he noted usually changes were not negotiated until the work was completed or nearly completed, so that the Project Ofce generally funded changes at the point of authorization. There were management reserve funds available for this purpose. Specically. a management reserve charge number was established for each authorizedbutnotnegotiated change. This charge number. along with a denition of the change in question was issued to the organizations affected. later. when the change was negotiated the management reserve account. in turn was increased by the amount of the negotiated cost. Page noted that the cost history on changes generally was diicult to obtain, but that the Project Office had recently received an end-of-year summary of the ACCONS Project's negotiated changes and the actual costs charged to each change [see Exhibit 9}