Note: Cost Analysis Improvement Group (CAIG) is now known as Cost Assessment and Program Evaluation (CAPE).
The Cost Assessment and Program Evaluation (CAPE) office provides independent analytic advice to the Secretary of Defense on all aspects of the Defense program, including alternative weapon systems and force structures, the development and evaluation of defense program alternatives, and the cost-effectiveness of defense systems. The office also conducts analyses and offers advice in a number of related areas, such as military medical care, school systems for military dependents, information technology, and defense economics. Consistent with its advisory role, the office has no decision authority or line responsibility and has no vested interest in any sector of the defense budget.
CAPE is also responsible for the management of the programming system, including development of planning guidance (in conjunction with other organizations within the Office of the Secretary of Defense), production of the Joint Programming Guidance (JPG), and direction of the annual program review. The ultimate product of the program review is the Future Years Defense Program (FYDP) – the authoritative statement of what the Department plans, year by year, by way of force structure (how many ships, brigades and divisions, aircraft squadrons and wings, etc., we will operate), procurement (how many ships, tanks, aircraft, missiles, etc., we will buy), manpower (how many people, military and civilian, we plan to employ in each of the services and defense agencies), other supporting programs (such as R&D and military construction), and what it will all cost.
Director of Cost Assessment and Program Evaluation (DCAPE)
The Director of CAPE is a principal staff assistant and advisor to the Secretary and Deputy Secretary of Defense in the Office of the Secretary of Defense (OSD). The postholder, as chartered under United States Department of Defense Directive 5141.01, provides independent analytic advice to the Secretary of Defense on all aspects of the an DoD program, including alternative weapon systems and force structures, the development and evaluation of defense program alternatives, and the cost-effectiveness of defense systems.
The DCAPE responsibilities include: 
- Analyze and evaluate plans, programs, and budgets in relation to U.S. defense objectives, projected threats, allied contributions, estimated costs, and resource constraints.
- Review, analyze, and evaluate programs, including classified programs, for executing approved policies.
- Provide leadership in developing and promoting improved analytical tools and methods for analyzing national security planning and the allocation of resources.
- Ensure that the costs of DoD programs, including classified programs, are presented accurately and completely.
AcqLinks and References:
- DoD Directive 5141.01 “Director, Program Analysis and Evaluation” 16 March 06
-  Website: Cost Assessment and Program Evaluation (CAPE)