Cost Estimating

Manpower Estimates

Note: Manpower estimates are no longer required by DoD Instruction 5000.02 as a milestone deliverable.

From DoD Instruction 5000.02: In advance of contracting for operational support services, the Program Manager will, in conjunction with the designated DoD Component manpower authority, determine the most efficient and cost-effective mix of DoD manpower and contract support. The mix of military, DoD civilian, and contract support necessary to operate, maintain, and support (to include providing training) the system will be determined based on the manpower mix criteria (see DoD Instruction 1100.22 (Reference (bm))). Manpower mix data will be reported to cost analysts and factored into the preparation of independent cost estimates and DoD Component cost estimates. Economic analyses used to support workforce mix decisions will use costing tools, to include DoD Instruction 7041.04 (Reference (bn)), that account for fully loaded costs (i.e., all variable and fixed costs, compensation and non-compensation costs, current and deferred benefits, and cash and in-kind benefits) approved by the DoD Component manpower authority. [1]

Old Rule

Manpower estimates serve as the authoritative source for out-year projections of active-duty and reserve end-strength, civilian full-time equivalents, and contractor support work-years. The estimate is prepared by the program manager and approved by the DoD Component manpower authority (for the military departments, normally the Assistant Secretary for Manpower and Reserve Affairs). They’re due prior to each Defense Acquisition Board (DAB) milestone review and used as input into Life-Cycle Cost Estimate (LCCE). The final manpower estimate should be fully staffed and submitted to the Under Secretary of Defense for Personnel and Readiness in sufficient time to support the Overarching Integrated Product Team (OIPT) review in preparation of the DAB meeting. [1]

For Major Defense Acquisition Programs (MDAP), manpower estimates are required by: [1]

  1. 10 U.S.C. 2434, which directs the Secretary of Defense to consider an estimate of the personnel required to operate, maintain, support, and provide system-related training in advance of approval of the development, or production and deployment; and ·
  2. DoD Instruction 5000.02, which directs development of a manpower estimate at Milestones B, C, and Full-Rate Production (FRP).

STATUTORY:  A draft is due for Development RFP Release and approved at Milestone B. The office of the Under Secretary of Defense for Personnel and Readiness (OUSD(P&R)) will review. [2]

AcqLinks and References:

Updated: 8/18/2018

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