RBT
Risk-Based Threshold
Definition
A Risk-Based Threshold is a predetermined criterion that triggers specific actions, reviews, or approvals based on assessed risk levels. RBTs establish boundaries that determine when enhanced oversight, additional documentation, or higher-level approval is required for contract actions.
Agencies use RBTs to focus management attention and resources on higher-risk procurements while streamlining lower-risk activities. Thresholds may be based on dollar value, contract type, performance history, or other risk factors. Understanding applicable RBTs helps contractors anticipate the level of scrutiny their proposals and contract performance will receive.
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