Guidance for Estimating Consumable and Depot Level Reparables Cost
Abstract
The purpose of this paper is to provide guidance for including surcharges and credits in cost estimating for Depot Level Reparables and Consumables in Baseline Cost Estimates (BCE), Independent Cost Estimates (ICE), and other cost estimating products. Two critical components of the U.S. Army Cost and Economic Analysis Center's (USACEAC) mission are to develop and disseminate cost and economic policy; and to provide timely/quality cost and economic analysis support to the Planning, Programming, Budgeting, and Executive System (PPBES) and the Army Staff decision making process. New cost estimating procedures are required because of two important DMRD changes; the inclusion of surcharges in Army Master Data File (AMDF) prices and the change from procurement funding to operations and maintenance funding for Replenishment DLRs under the Supply Management, Army (SMA), formerly Army Stock Fund (ASF). Specifically, DMRD 904 Stock Funding of Reparables affected the cost element structure and the definition of costs components used in Army resource management, particularly in the management of operating and support costs. Under this concept, units no longer receive replacement DLRs as free issue. Therefore, cost analysts must account for surcharges and credits when developing system's life cycle costs.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1993
- Accession Number
- ADA275659
Entities
People
- Anne P. Twist