Financial Management

Operating and Support Cost

Operating and Support Cost (O&S) consists of sustainment costs incurred from the initial system deployment through the end of system operations. This includes costs, directly and indirectly, attributable to the system (i.e., costs that would not occur if the system did not exist), regardless of funding source or management control.

Typically costs include: [1]

  • Continuing System Improvements
  • Depot Maintenance
  • Energy (Fuel, Electricity, etc.)
  • Equipment
  • General Training and Education
  • Hardware Modifications or Modernization
  • Indirect Support
  • Installation Support
  • Intermediate Maintenance
  • Maintaining
  • Maintenance
  • Manpower
  • Modifying Operating
  • Operating Equipment Replacement
  • Operating Materiel
  • Operations Manpower
  • Organizational Maintenance and Support
  • Personnel Support
  • Program Management
  • Software Maintenance and Modifications
  • Supplies
  • Supplying
  • Support Equipment Replacement
  • Support Services
  • Sustaining Engineering
  • Sustaining Support
  • System Specific Training
  • Temporary Duty Training Munitions and Expendable Stores
  • Unit Operations
  • Unit-Level Maintenance Manpower

Direct costs refer to the resources immediately associated with the system or its operating unit. Indirect costs refer to the resources that provide indirect support to the system (including its manpower or facilities).

For the Operating and Support Cost report format, see DoD 7000.14 R, Financial Management Regulation, Volume 2B, Chapter 5.


  • 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:

Updated: 7/31/2021

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