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 […]
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 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
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
The Government Accountability Office (GAO) Cost Estimating Process consists of twelve (12) steps. Each step builds upon each other to develop and comprehensive and complete cost estimate. Each of the 12 steps is important for ensuring that high-quality cost estimates are developed and delivered in time to support important decisions. Steps: Tasks Breakdown of the GAO 12
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. More simply, cost estimating combines science and art to predict the future cost of something based on known historical data that are adjusted
A Cost Estimate (also known as a Life-Cycle Cost Estimate) is a detailed estimate of acquisition and Total Ownership Costs (TOC) for an acquisition program. It’s normally required for high-level decisions. A DoD Component Cost Estimate is a cost estimate that one of the services (Air Force, Army, Navy) is responsible for developing. A DoD
