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New Functionality for Outline Agreement: Target Value Field

Posted Date: 08/09/2022


When an Outline Agreement (OA) is created, the Target Value field will now be automatically calculated and will no longer be editable. 

Definition of Terms 

Target Value:  The Target Value of an OA represents the value of the contract as currently released.  This is the amount of the actual commitment to the vendor over the validity period of the contract from the original validity start date through the current validity end date.  It does not include any potential extensions or renewals which have not been executed.

Total Projected Cost (TPC):  The Total Projected Cost of an OA is the sum of the Target Value plus the value of any potential renewals or extensions over the anticipated life of the contract.  The anticipated life of the contract is no more than 7 years unless otherwise allowed by law. 


Previously, the system calculated the minimum value allowed in Target Value field.  It was calculated based on the sum the values of all the OA line items.  The line item value was a simple calculation of the target quantity times the net price.  This calculation included blocked lines (those with a padlock icon).  The value in the Target Value field could be changed by the user to a higher amount.

New functionality

The lines are now calculated in the following way to represent the true value of the contract.

  1. The value of each open (not blocked, not deleted) line is calculated by multiplying the target quantity by the net price for the line.
  1. The value of all blocked lines is calculated using only the value of all Purchase Orders (POs) that have been released for that line.  It doesn’t include any quantity not released on a PO.
  2. The Target Value field will be automatically calculated by the system and cannot be changed by the user.