Cost Analysis Requirements Description (CARD) Guidance The CARD succinctly describes the key technical, programmatic, operational, and sustainment characteristics of a program, along with supporting data sources, and provides all of the program information necessary to develop a cost estimate.

What is Cost Analysis Requirements Description?

The Cost Analysis Requirements Description (CARD) is a complete, detailed description of a DoD program for use in preparing an ICE, POE, CCE, CCP, or other cost estimate, as required. The foundation of a sound cost estimate is a well-defined program, and the CARD is used to articulate details about the program.

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

The review will establish a formal position on a program’s life-cycle cost and will advise the Milestone Decision Authority (MDA) on this position. The review consists of the preparation of an independent life-cycle cost estimate, as well as an assessment of the DoD Component Cost Estimate.

What are the steps in the life cycle cost estimating process?

Twelve Steps in the LCC Process

1. Define the problem.
2. Identify feasible alternatives.
3. Consider the alternatives in terms of system requirements – operations and maintenance.
4. Develop the cost breakdown structure (CBS).
5. Develop the cost model.
6. Estimate the appropriate costs.

When developing cost estimates estimators should enlist support from all interested parties?

When developing cost estimates, estimators should enlist support from all interested parties. These parties can include representatives from the financial management, contracting, logistics, engineering, and program management functions.

Which DoD policy document details the milestone decision process?

DoD Directive 5000.01 “Defense Acquisition System” DoD Instruction 5000.02 “Operation of the Defense Acquisition System” Improve Milestone Process – 23 June 2011.

What is a service cost position?

A Component Cost Position (CCP) is the estimated cost for an acquisition program by a service component (Air Force, Army, Navy, Marine Corp) for each year throughout the Future Years Defense Program (FYDP).

How do you manage project costs?

8 Tips for Managing Project Costs

1. Produce an estimate. Compile a realistic estimate with your team.
2. Achieve a baseline budget.
3. Establish monthly budget.
4. Establish cost controls.
5. Record actual costs.
6. Calculate metrics.
7. Update forecasts.
8. Communicate.

What are the main reasons to document your cost estimate?

Documentation provides total recall of the estimate’s detail so that it can be replicated by someone other than those who prepared it. It also serves as a reference to support future estimates.

When laying out a timeline What is a cost estimate?

When laying out a timeline for a cost estimate, it is preferable to lay out the plan chronologically from beginning to end. When developing cost estimates, estimators should enlist support from all interested parties.

What is a milestone a decision?

Milestone A. Milestone A is a Milestone Decision Authority (MDA) led review at the end of the Materiel Solutions Analysis (MSA) Phase in the Defense Acquisition Process. Its purpose is to make a recommendation or seek approval to enter the Technology Maturation & Risk Reduction (TMRR) Phase.

What is the acquisition life cycle?

The Acquisition Life Cycle typically follows the waterfall system development model and includes the following phases: Initiation, Planning, Procurement, System Development, System Implementation, Maintenance & Operations, and Closeout.

What are examples of techniques for estimation?

Major project estimation techniques

• Top-down estimate.
• Bottom-up estimate.
• Expert judgment.
• Comparative or analogous estimation.
• Parametric model estimating.
• Three-point estimating.

What cost estimating technique?

4 Project Cost Estimation Techniques

1. 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.
2. Parametric Estimating.
3. Bottom-Up Estimating.
4. Three-Point Estimating.

What is included in life-cycle cost?

Life cycle cost (LCC) is an approach that assesses the total cost of an asset over its life cycle including initial capital costs, maintenance costs, operating costs and the asset’s residual value at the end of its life.