What is the Cost Analysis Requirements Description?

What is the Cost Analysis Requirements Description?

The Cost Analysis Requirements Description (CARD) is a complete, detailed description of a DoD program for use in preparing an independent cost estimate (ICE), program office estimate (POE), DoD Component cost estimate (CCE), DoD Component cost position (CCP), or other cost estimate, as required.

Who prepares the Cost Analysis Requirements Description?

The CARD is prepared by the Program Management Office (PMO) and approved by the DoD Component Program Executive Officer (PEO).

What is prepared as part of the cost estimating review process?

The review consists of the preparation of an independent life-cycle cost estimate, as well as an assessment of the DoD Component Cost Estimate. A comprehensive description of the Cost Assessment review process is found in DoD 5000.04-M, “DoD Cost Analysis Guidance and Procedures,” Section 2.

What three major appropriations categories are included in scope of a life-cycle cost estimate?

Life cycle costs can be viewed from three different perspectives: funding appropriations, WBS and life cycle cost categories. Funding appropriations refer to the major categories of appropriations with which Congress provides DoD budget authority: RDT&E, Procurement, MILCON, MILPERS, and O&M.

What is an independent cost estimate?

A. The independent cost estimate is a tool to assist in determining the reasonableness or unreasonableness of the bid or proposal being evaluated and is required for all procurements regardless of dollar amount.

What is a life cycle cost estimate?

A Life-Cycle Cost (LCC) Estimate (See Cost Estimating) is the estimated cost of developing, producing, deploying, maintaining, operating, and disposing of a system over its entire lifespan. It’s used to acquire funding for a system throughout its lifespan.

What are the main reasons to document your cost estimate?

It also serves as a reference to support future estimates. Documenting the cost estimate makes available a written justification showing how it was developed and aiding in updating it as key assumptions change and more information becomes available.

Who serves on the cost assessment and program evaluation staff?

The staff includes a combination of civilian government employees, military officers from all branches of service, and contractor support. CAPE’s civilian staff is drawn from a variety of academic disciplines, including, but not limited to, physics, economics, mathematics and engineering.

What cost estimating technique?

4 Project Cost Estimation Techniques

  • Analogous Estimating. Through analogous estimating, a project manager calculates the expected costs of a project-based upon the known costs associated with a similar project that was completed in the past.
  • Parametric Estimating.
  • Bottom-Up Estimating.
  • Three-Point Estimating.

What cost estimating technique would be most appropriate?

Generally, the cost estimating technique used for an acquisition program progresses from the analogy to actual cost method as that program becomes more mature and more information is known. The analogy method is most appropriate early in the program life cycle when the system is not yet fully defined.

What is the purpose of life cycle cost analysis?

Life-Cycle Cost Analysis (LCCA) Method. The purpose of an LCCA is to estimate the overall costs of project alternatives and to select the design that ensures the facility will provide the lowest overall cost of ownership consistent with its quality and function.

What are the cost estimation techniques?

What are the requirements for cost estimates for DoD programs?

All cost estimates conducted for DoD programs must: (1) Include a discussion of risk, the potential impacts of risk on program costs and schedule, and approaches to mitigate risk.

What is the cost analysis requirements description (card)?

This information is provided in the document known as the Cost Analysis Requirements Description (CARD). The CARD completely describes the system whose costs are to be estimated; it should define the program in sufficient detail so that no confusion exists among the many parties who may be concerned with estimating the program’s cost.

What does a DoD cost analyst do?

DoD cost analysts play a critical role in this by producing cost estimates that support the planning, programming, budgeting, acquisition, and requirements generation processes.

Who approved the DoD Cost Assessment and program evaluation policy?

Approved by:John E. Whitley, Performing the Duties of the Director, Cost Assessment and Program Evaluation Purpose: In accordance with the authority in DoD Directive 5105.84, this issuance establishes policy, assigns responsibilities, and provides procedures for the conduct of cost estimation and analysis and the