Investment Cost consists of production and deployment costs incurred from the beginning of Low-Rate Initial Production (LRIP) through completion of deployment. Typically costs include: [1]
- Common support equipment
- Deploying the primary hardware
- Engineering change orders
- Industrial Facilities
- Initial Spares and Repair Parts
- Military construction
- Operational/Site Activation
- Operations and Maintenance
- Operations and maintenance associated with the production and deployment phase
- Peculiar Support Equipment
- Prime Mission Product
- Producing primary hardware
- Product support elements associated with production assets
- Program management
- System Test and Evaluation
- Systems engineering
- Technical Publications and Data
- Training
For the Investment Cost report format, see DoD 7000.14 R, Financial Management Regulation, Volume 2B, Chapter 5.
AcqTips:
- The Training element includes training equipment and devices, training course materials, and training services
- Supportability Analysis that defines the requirements for the logistics elements is part of Systems Engineering, and planning and management associated with the logistics elements is part of Program Management
- Specialized facilities (fixtures, test chambers, laboratories, etc.) are considered part of the Work Breakdown Structure (WBS) element that they support.
- Specialized contractor support is considered part of the WBS element that it supports. Contractor support associated with the service, maintenance or launch of prime mission systems is part of the Operational/Site Activation element
AcqLinks and References:
- Defense Acquisition Guidebook (DAG) – Chapter 3
- DoD Instruction 7000.14 “DoD Financial Management Policy and Procedures” – 15 Nov 92
- DoD Instruction 7000.14-R“ DoD Financial Management Policy and Procedures”, Volume 2A
Updated: 7/20/2017
