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A cost estimate should document the purpose of the estimate, the program background and system description, its schedule, the scope of the estimate (in terms of time and what is and is not included), the ground rules and assumptions, all data sources, estimating methodology and rationale, the results of the risk analysis, and a conclusion […]

Key to developing a credible estimate is having an adequate understanding of the acquisition program, the Acquisition Strategy, technical definition, characteristics, system design features, and technologies to be included in its design. The cost estimator can use this information to identify the technical and program parameters that will bind the cost estimate. [1] The objective

A Life-Cycle Cost (LCC) is the total cost of a program from cradle to grave. (also referred to as Total Ownership Cost (TOC)) LCC consists of Research and Development (R&D) Costs, Investment Costs, Operating and Support Costs, and Disposal Costs over the entire life cycle. These costs include not only the direct costs of the

A Program Office Estimate (POE) (also known as a Life-Cycle Cost Estimate) is a detailed estimate of acquisition and Total Ownership Costs (TOC) normally required for high-level decisions. (see DoD Component Cost Estimate) The estimate is performed early in the program and serves as the baseline for all subsequent tracking and auditing purposes. The Program

An Independent Cost Estimates (ICE) is a Life-Cycle Cost Estimate (LCCE) that is conducted independently of the Program Management Office (PMO) or defense agency by an outside organization.  It examines the full life-cycle cost (or Total Ownership Costs (TOC)) for a Major Defense Acquisition Program (MDAP) Acquisition Category (ACAT) I program. It’s required to be

A Cost Analysis Requirements Description (CARD) is used to formally describe the acquisition program for purposes of preparing both the DoD Component Cost Estimate and the Independent Cost Estimate (ICE) for Acquisition Category (ACAT) I and ACAT IA programs. The CARD is a description of the technical and programmatic features of an acquisition program or system