Expanding Operating and Support Cost Analysis for Major Programs During the DoD Acquisition Process: Legal Requirements, Current Practices, and Recommendations
Abstract
The Weapon System Acquisition Reform Act of 2009 established the Office of Cost Assessment and Program Evaluation (CAPE) in the Office of the Secretary of Defense and mandated a broad set of cost analysis duties, including conducting independent cost estimates and cost assessments of major defense acquisition programs at acquisition milestones. Subsequent laws have mandated additional cost analysis duties for CAPE, especially pertaining to program operating and support (O and S) costs, and have expanded CAPE duties to focus more on product support activities and costs. O and S costs are those incurred after a system has been delivered to the field; product support includes O and S and activities and costs during acquisition that affect the reliability, maintainability, availability, and O and S cost of the system. CAPE asked the RAND Corporation to assess CAPE's cost-analysis activities in these areas and recommend ways that consideration of O and S cost issues could be improved during the acquisition process. RAND assessed the cost analysis requirements pertaining to O and S costs by reviewing relevant laws and U.S. Department of Defense (DoD) guidance; assessed the resources available to conduct the analyses by determining numbers of cost estimating personnel, reviewing data typically available to inform cost analyses and cost estimating processes and timelines; conducted interviews with government and industry subject-matter experts; and reviewed literature to develop recommendations to improve the cost analysis of weapon system product support.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2018
- Accession Number
- AD1086295
Entities
People
- Alyssa Ramos
- Joslyn Fleming
- Katherine Anania
- Michael Boito
- Tim Conley
Organizations
- RAND Corporation