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  1. Hi, Wondering how to process a wage escalation REA for a CPIF contract before actual costs have incurred. When issuing the option we incorporated a new CBA WD. We were going to wait to process the REA to adjust Target Cost based on actuals but management wanted us to adjust the cost based on estimated cost. As long as the new CBA rates result in an allowable cost, why would we base an REA on estimated cost vs. actual cost when adjusting the Target Cost?
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