Cost Estimating Modeling (CEM)
Abstract
Cost Estimating Modeling (CEM) provides and enhances Air Force-wide cost estimating capabilities by developing current cost estimating datasets and methods and tools, data architectures/structures, and other cost estimating method/tool gap-filling initiatives. In collaboration with the OSD Cost Assessment Data Enterprise (CADE) project (the Department of Defense's (DoD) unified information system and initiative to collect, organize, store, and use contractor and acquisition data more efficiently), CEM products improve the quality, timeliness, and effectiveness of acquisition program cost estimates in support of Department of Air Force (DAF) and DoD acquisition decisions, programming and execution decisions, and Congressional mandates. The partnership between CEM and CADE is a leading example of a data initiative designed as a response to a Congressional-expressed desire for better outcomes in acquisition. CEM research ensures DAF datasets, analysis, estimating tools, and institutional knowledge availability at analyst's fingertips rather than an inefficient, ad hoc, and decentralized approach. CEM ensures the DAF continuously improves cost estimating capabilities for broad cross-cutting areas, as well as specific to each weapon system type. This project performs knowledge-based studies to include organizing complete datasets, analyzing historical data, and studying changing technologies/programmatic information to develop new estimating methods (e.g., statistical tools, cost estimating relationships) across hundreds of product work breakdown structure elements and functional cost elements. CEM delivers valuable datasets, methods, and analytical tools in support of higher quality/credible estimates required by statute and regulation allowing for more realistic cost-conscious decisions on over $200.0B of critical warfighter capability. Changing technologies, acquisition laws, policy directives, and initiatives drive the continuous requirement for revised cost estimating processes, methods, and tools. Critical policy requirements for which CEM research facilitates implementation and compliance are: - Statute (e.g., Title 10, section 167; USC 3221, 3227, 4251, 4252, 4253, and 4328) - Policy directives (DoDI 5000.73, DoDI 5000.74, DoDI 5000.75, DoDI 5000.80, DoDI 5000.85, DoDI 5000.87) - FY2016/17/18/21 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, and 0606398F. In FY2023 $0.0M was expended for civilian pay expenses in this program element, and in FY2024 $0.0M is forecasted for civilian pay expenses in this program element.
Document Details
- Document Type
- Project
- Publication Date
- Oct 01, 2025
- Source ID
- 675177_0901538F_7_3600_PB_2025
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