Cost Estimating Modeling (CEM)
Abstract
Cost Estimating Modeling (CEM) provides and enhances Air Force-wide cost estimating capabilities by developing current cost data and estimating methods and tools. In collaboration with the OSD Cost Assessment Data Enterprise (CADE) project, these products will improve the quality, timeliness, and effectiveness of the acquisition program cost estimates required by statute (e.g., 10 USC 2366, 2433, 2434) and regulation (e.g., DoDI 5000.02) in support of Air Force and Department of Defense acquisition decisions, programming and execution decisions, and Congressional mandates. The Air Force works to continuously improve cost estimating capabilities for each weapon system type (aircraft; ballistic missiles; electronics and aircraft modifications; ground stations and automated information systems; cross cutting databases; satellites and launch vehicles; tactical missiles; and munitions). Changing acquisition laws, regulations, initiatives, and technologies drive the need to revise cost estimating tools. For example, current shortfalls in capability reflect efforts needed to fill gaps in response to the laws and regulations such as the FY06 NDAA report {PL 109-163--Provisions relating to Major Defense Acquisition Programs (MDAPs)}, Weapon System Acquisition Reform Act (WSARA) {provisions related to improving cost estimating quality, especially earlier in the program life-cycle and affordability analysis}, Secretary of the Air Force (SECAF) Acquisition Excellence Plan {priorities to improve cost estimating capability and affordability analysis and improved cost estimating support to requirements process}, and new Office of the Secretary of Defense (OSD) policy {better buying power initiatives on enhanced trade-off analysis, affordability analysis, and will versus should cost analysis}. This project will perform knowledge-based studies (KBS) analyzing historical data to produce cost estimating relationships (CERs) or statistical data to develop cost estimating databases, methods and tools across hundreds of product work breakdown structure (WBS) elements and functional cost elements within each weapon system type. The different weapon system types are: Aircraft, Ballistic Missiles, Electronics and Aircraft Modifications, Ground Stations and Automated Information Systems (AIS), Cross-Cutting Studies, Satellites and Launch Vehicles (Space Systems), and Tactical Missiles and Munitions. Some areas of cost modeling efforts that are cross-cutting within all weapon system types are: cost risk metrics, methods development, statistical model enhancements; software cost database, metrics, statistical model development; contract or engineering change order analysis models; other government cost elements (e.g., depot standup and government test); nuclear hardening; time phasing; reliability and maintainability; disposal; and commodity area price escalation analysis and models.
Document Details
- Document Type
- Project
- Publication Date
- Oct 01, 2017
- Source ID
- 675177_0901538F_7_3600_PB_2017
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