Cost Estimating Modeling (CEM)

Abstract

The Cost Estimating Modeling (CEM) program strengthens Department of the Air Force cost estimators' ability to assess more accurately cost requirements. Its products improve the quality, timeliness, and effectiveness of acquisition program cost estimates and ultimately posture the DAF to make better acquisition decisions for more than 200 billion dollars in critical war-fighter capability. The CEM program performs studies to continuously develop updated cost data and estimating methods and tools, data process re-engineering tools, data structure development tools, and gap filling initiatives. The program focuses on both broad cross-cutting initiatives as well as weapon system type-specific. Products are then uploaded to the OSD Cost Assessment Data Enterprise (CADE) system for the defense cost estimation community to access. Changing technologies, acquisition laws, policy directives, and initiatives drive the need to continuously revise cost estimating processes, methods, and tools. Specifically, CEM initiatives are planned based on the following: - Statute (e.g., Title 10, section 167; USC 3221, 3227, 4251, 4252, 4253, and 4328) - Policy directives (e.g., DoDI 5000.02, DoDI 5000.73) - FY16/17/18/21 NDAA reports (PL 114-92/114-328/115-91/116-283) including provisions relating to Major Defense Acquisition Programs (Section 804 of the FY16 NDAA authorized rapid prototyping and rapid fielding of defense systems) - Annual life-cycle cost estimation requirements - Weapon System Acquisition Reform Act (WSARA) (provisions related to improving cost estimating quality and affordability analysis) - Secretary of the Air Force acquisition excellence plans (priorities to improve cost estimating capability and affordability analysis) - Office of the Secretary of Defense policy (initiatives on enhanced trade-off analysis, affordability analysis, and cost reduction initiatives) This program element may include necessary civilian pay expenses required to manage, execute, and deliver weapon system capability. The use of such programs funds would be in addition to the civilian pay expenses budgeted in program element 0605827F, 0605828F, 0605829F, 0605831F, 0605832F, 0605833F, 0605898F, 0606398F. In FY22 $0M was expended for civilian pay expenses in this program element, and in FY23 $0M is forecasted for civilian pay expenses in this program element.

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Document Details

Document Type
Project
Publication Date
Oct 01, 2024
Source ID
675177_0901538F_7_3600_PB_2024

Tags

Readers

  • Defense Acquisition Program Management
  • Life Cycle Cost Analysis

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