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This is a report about cost estimating in naval procurement and the ability of Navy estimators, particularly in the Naval Sea Systems Command, to adequately forecast required program funding for ship construction and conversion. It is also an attempt to carefully ascertain where improvements can be made. It is recognized that the cost estimating problem is extremely complex and, if at all possible, improvements should be made. Obviously, the national interest is at the heart of the matter. It is believed that specific action can be taken by NAVSEA to improve its capability and inasmuch as other government and industrial organizations interact in procurement activities so profoundly, areas are pointed to where NAVSEA may want to suggest complementary actions by organizations outside its control. This document is a summary of a much longer Final Report which examines these important issues in depth. To the extent a short summary can analyze complex problems and outline proposed solutions, this document addresses that objective. (Author).
This is a report about cost estimating in naval procurement and the ability of Navy estimators, particularly in the Naval Sea Systems Command, to adequately forecast required program funding. It is also an attempt to carefully ascertain where improvements can be made. It is recognized that the cost estimating problem is extremely complex and, if at all possible, improvements should be made. Obviously, the national interest is at the heart of the matter. It is believed that specific action can be taken by NAVSEA to improve its capability and inasmuch as other government and industrial organizations interact in procurement activities so profoundly, areas are pointed to where NAVSEA may want to suggest complementary actions by organizations outside its control.
This section of the report provides an overview of the shipbuilding industry, placing into perspective the cost problems experienced in naval ship construction. It describes the nature of the industry and its problems, emphasizing: The concentration of the industry as reflected by an increasingly limited number of shipbuilders; The sudden, erratic movement in labor and material cost that has impacted shipbuilders worldwide; That NAVSEA's inability to accurately estimate costs in the recent environment is shared by shipbuilders in the U.S. and other countries; and General background data is also provided for reference purposes in understanding the environment within which NAVSEA must estimate future ship construction costs. (Author).
NAVSEA Cost Estimating Handbook (2005) *Printed in Black and White to reduce cost* Naval Sea Systems Command (NAVSEASYSCOM or NAVSEA) explains how a NAVSEA cost estimate is an assemblage of separate, distinct, and subordinate parts and each subordinate part is treated as a whole to be separated into its elements for examination, modification, and/or updating before becoming a part of a total estimate. The NAVSEA cost estimating process is at once analytical and synthesizing in nature using established methods and valid data, to estimate the future costs of a program, based on what is known today. It is an organized approach designed to accurately calculate the future costs of ships, submarines, and weapons systems. The management of a cost estimate involves continually updating the estimate with actual data as they become available, revising the estimate to reflect changes, and analyzing differences between estimated and actual costs-for example, using data from a reliable earned value management (EVM) system. Anyone that has ever managed a project knows the value of a good cost estimate.The ability to generate reliable cost estimates is a critical function, necessary to support the NAVSEA capital programming process. Without this ability NAVSEA is at risk of experiencing cost overruns, missed deadlines, and performance shortfalls-all recurring problems that program assessments too often reveal. Furthermore, cost increases often mean that NAVSEA cannot fund as many programs as intended or deliver them when promised. The methodology outlined in this guide is a compilation of best practices that federal cost estimating organizations and industry use to develop and maintain reliable cost estimates throughout the life of a NAVSEA acquisition program. Why buy a book you can download for free? We print this book so you don't have to. First you gotta find a good clean (legible) copy and make sure it's the latest version (not always easy). Some documents found on the web are missing some pages or the image quality is so poor, they are difficult to read. We look over each document carefully and replace poor quality images by going back to the original source document. We proof each document to make sure it's all there - including all changes. If you find a good copy, you could print it using a network printer you share with 100 other people (typically its either out of paper or toner). If it's just a 10-page document, no problem, but if it's 250-pages, you will need to punch 3 holes in all those pages and put it in a 3-ring binder. Takes at least an hour. It's much more cost-effective to just order the latest version from www.Amazon.com This material is published by 4th Watch Publishing Co. We publish tightly-bound, full-size books at 8 1⁄2 by 11 inches, with large text and glossy covers. 4th Watch Publishing Co. is a Service-Disabled Veteran-Owned Small Business (SDVOSB). Please visit www.usgovpub.com. DoDi 5000.02 Operation of the Defense Acquisition System DoD Contract Pricing Reference Guide DoD Operating and Support Cost-Estimating Guide