Prior to Milestone C, how should a LRIP contract type change be addressed?

Prior to Milestone C, how should a LRIP contract type change be addressed?

• A. The LRIP contract type should be changed after Milestone C.
• B. LRIP contract changes are not allowed.
• C. The PM should update the acquisition strategy with the proposed contract type prior to Milestone C and discuss why it is appropriate.
• D. The LRIP contract type should be changed before Milestone A.

Answer: (C)

Before Milestone C, any proposed LRIP contract-type change should be incorporated into the program’s acquisition strategy with a clear justification for why that contract approach is appropriate. This timing matters because Milestone C is the point where production decisions and ramp plans are finalized, so the contract type chosen for LRIP directly affects cost risk, incentives, schedule, and funding stability. Updating the acquisition strategy ensures leadership reviews, approvals, and alignment with the program’s risk profile and budget before production begins. If changes were postponed past Milestone C, it could complicate the production ramp and require rebaselining; meanwhile, changing too early (before Milestone A) would be premature since the strategy should reflect mature plans and risks as the program approaches production.

Before Milestone C, any proposed LRIP contract-type change should be incorporated into the program’s acquisition strategy with a clear justification for why that contract approach is appropriate. This timing matters because Milestone C is the point where production decisions and ramp plans are finalized, so the contract type chosen for LRIP directly affects cost risk, incentives, schedule, and funding stability. Updating the acquisition strategy ensures leadership reviews, approvals, and alignment with the program’s risk profile and budget before production begins. If changes were postponed past Milestone C, it could complicate the production ramp and require rebaselining; meanwhile, changing too early (before Milestone A) would be premature since the strategy should reflect mature plans and risks as the program approaches production.