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The following sample of a CAIG(Cost Analysis Improvement Group) Operating and Support Cost Estimate Report covering a hypothetical case has been developed to further assist the cost analyst in the preparation of cost estimating reports submitted to the DSARC and CAIG during the acquisition process of a new weapon system. The sample is intended to show an example of how Operating and Support Costs can be developed for CAIG review with available data bases and one example of an appropriate format for presentation of cost estimates. The existing A-7E data base was used only to illustrate the need to relate an estimate to an existing similar system and to ensure a constant relationship between values and the Cost Element Structure. Each case should address that data which is the most complete and accurate for its purposes. The level of detail depicted in this example may be greater than that which is available or appropriate to a specific case.
The following sample of a CAIG(Cost Analysis Improvement Group) Operating and Support Cost Estimate Report covering a hypothetical case has been developed to further assist the cost analyst in the preparation of cost estimating reports submitted to the DSARC and CAIG during the acquisition process of a new weapon system. The sample is intended to show an example of how Operating and Support Costs can be developed for CAIG review with available data bases and one example of an appropriate format for presentation of cost estimates. The existing A-7E data base was used only to illustrate the need to relate an estimate to an existing similar system and to ensure a constant relationship between values and the Cost Element Structure. Each case should address that data which is the most complete and accurate for its purposes. The level of detail depicted in this example may be greater than that which is available or appropriate to a specific case.
The following sample of a CAIG(Cost Analysis Improvement Group) Operating and Support Cost Estimate Report covering a hypothetical case has been developed to further assist the cost analyst in the preparation of cost estimating reports submitted to the DSARC and CAIG during the acquisition process of a new weapon system. The sample is intended to show an example of how Operating and Support Costs can be developed for CAIG review with available data bases and one example of an appropriate format for presentation of cost estimates. The existing A-7E data base was used only to illustrate the need to relate an estimate to an existing similar system and to ensure a constant relationship between values and the Cost Element Structure. Each case should address that data which is the most complete and accurate for its purposes. The level of detail depicted in this example may be greater than that which is available or appropriate to a specific case.
The following sample of a CAIG(Cost Analysis Improvement Group) Operating and Support Cost Estimate Report covering a hypothetical case has been developed to further assist the cost analyst in the preparation of cost estimating reports submitted to the DSARC and CAIG during the acquisition process of a new weapon system. The sample is intended to show an example of how Operating and Support Costs can be developed for CAIG review with available data bases and one example of an appropriate format for presentation of cost estimates. The existing A-7E data base was used only to illustrate the need to relate an estimate to an existing similar system and to ensure a constant relationship between values and the Cost Element Structure. Each case should address that data which is the most complete and accurate for its purposes. The level of detail depicted in this example may be greater than that which is available or appropriate to a specific case.
The Military Departments and defense contractors have for some time been actively concerned about rising life cycle costs (LCC) of Defense weapon systems. Over the past two years, the Department of Defense (DoD) has placed new emphasis on examining the projected operating and support (O and S) costs of planned weapons and finding ways to reduce those costs. O and S cost analyses are now a major part of the cost review conducted at each weapon procurement decision meeting by the Defense Systems Acquisition Review Council (DSARC) and the DSARC's principal advisor on new system costs--the Cost Analysis Improvement Group (CAIG). This report recommends guidelines for preparing estimates of the support investment (SI) and O and S costs of ship acquisition programs and presenting them to the DSARC. It provides a framework for objective comparison of SI and O and S costs of program, design, or support alternatives, using consistent methodologies and terminology. A general methodology for SI and O and S cost estimating is described, a standard cost element structure for ships is defined, and specific requirements for presentation of SI and O and S cost estimates to the DSARC are proposed. Standards for the presentation and documentation of these cost estimates are also recommended. These guidelines are intended to achieve consistent and effective preparation and documentation of SI and O and S cost estimates for major weapon systems, and to facilitate the DSARC's and the CAIG's examination of important SI and O and S cost issues.
Operating and Support (O & S) costs for the Micro Wave Landing System (MLS) and the current Precision Approach Radar/Instrument Landing System (PAR/ILS) (baseline) are shown. These figures are compared to the figures presented to the DSARC at Milestone II. The force O & S costs are based on a three year delivery schedule plus 20 years of full force operation of 150 copies. The cost reduction reflects a drop in the number of support personnel by 3. This cost reduction occurred in spite of the rapid rise in energy costs. The automatic solid state MLS requires only about 66% of the energy of the existing PAR/ILS in spite of an added automatic communications capability.
As weapon system life cycle costs have risen, DoD has placed new emphasis on examining the operating and support (O/S) cost impacts of planned new weapons and finding ways to reduce these costs. O/S cost analyses are now a major part of the cost review conducted at each weapon procurement decision meeting by the Defense Systems Acquisition and Review Committee (DSARC) and the Cost Analysis Improvement Group. This report recommends guidelines for preparing and presenting estimates of the support investment (SI) and O/S costs of fixed and rotary wing aircraft systems to DSARC. It provides a framework for objective comparison of SI and O/S costs of program, design, or support alternatives, using consistent methodologies and terminology. It also focuses on assessment of efforts to control downstream costs of weapon systems in the acquisition phase. A general methodology for SI and O/S cost-estimating is described, a standard cost element structure is defined, and specific requirements for presenting SI and O S cost estimates to DSARC are proposed. Standards for the presentation and documentation of those cost estimates are recommended.