Cost Estimating

Cost Estimating

Parametric Cost Estimating

Cost Estimating is the process of developing a cost estimate. Cost estimating involves collecting and analyzing historical data and applying quantitative models, techniques, tools, and databases to predict a program’s future cost. Parametric cost estimating is a parametric technique that uses regression or other statistical methods to develop Cost Estimating Relationships (CERs). A CER is …

Cost Estimating

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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 …

Cost Estimating

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Cost Estimating

Component Cost Estimate

The generic term “DoD Component Cost Estimate” is used to provide considerable latitude to each military service or defense agency as to the actual responsibility for this cost estimate. In some cases, a military service assigns the responsibility to the Program Management Office (PMO), which then provides a Program Office Life-Cycle Cost Estimate (PLCCE). In …

Cost Estimating

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Cost Estimating

Cost Analysis Reviews

Cost Analysis Reviews are conducted by the OSD Office of Cost Assessment to provide oversight of programs to ensure that they are able to deliver on cost, schedule, and performance parameters. All cost estimates and cost analyses and associated studies conducted by the DoD Components for Major Defense Acquisition Program (MDAP) and Major Automated Information …

Cost Estimating

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