Cdfm Module 2.2-2.3

Front 1

Major Acquisition Activities

Back 1

1. Pre-systems Acquisition

2. Systems Acquisition

3. Sustainment

Front 2

Pre-Systems Acquisition

Back 2

Work efforts during this period are prior to there being a formal Acquisition program.

1. Materiel solution analysis (Milestone A)

2. Technology development (Milestone B)

10% of costs

Front 3

Systems Acquisition

Back 3

1. Engineering and Manufacturing Development (Milestone C)

2. Production and Development

30% of costs

Front 4

Initial Capabilities Document

Back 4

Broad, time phased, operational goals, and a description of the required capabilities to address a specific gap.

Front 5

DoD Acquisition Life Cycle

Back 5

Front 6

Sustainment

Back 6

1. Operations and support. Fully operational capability is achieved

60% of costs

Front 7

Acquisition Phases

Back 7

1. Materiel Solution Analysis

2. Technology Development

3. Engineering and Manufacturing Development

4. Production and Deployment

5. Operation and Support

Front 8

Milestone A

Back 8

One path into the Acquisition process begins with examining alternative concepts to meet a stated mission need. This path starts with a decision at Milestone A to authorize entry into the Technology Development phase. Normally, successful passage of Milestone A does not equal program initiation for a new program.

Front 9

Milestone B

Back 9

The purpose is to authorize entry into the Engineering and Manufacturing Development phase. Usually the point at which program initiation occurs. At this point, the military Department or agency is required to have adequate funds in the FYDP to finance the Acquisition program during this period.

Front 10

Milestone C

Back 10

A favorable decision authorizes the program manager to commence low rate initial production or limited Deployment.

Front 11

Acquisition Categories

Back 11

Established to determine the level bnb of management review, decision authority, and applicable reporting requirements for a program.

Front 12

ACAT 1 Programs

Back 12

1. Major Defense Acquisition Program

2. Estimated by USD (AT&L) to require total expenditures of:

-RDTE of more than $365M or

-Procurement of more than $2.19B

3. Estimated by USD (AT&L) because of special interest (Congress, complex Technology, joint program)

4. Dollar Estimate to include cost of all known evolutionary Acquisition blocks.

Front 13

ACAT 1 Subcategories

Back 13

ACAT 1D: MDA is at DoD level

ACAT 1C: MDA is at Component level

Front 14

ACAT 1A

Back 14

1. A Major Automated Information System program

2. USD (AT&L) estimates costs to require:

-total cost in any single year in excess of $32M

-total program cost in excess of $126M or

-total life Cycle cost in excess of $378M

Front 15

ACAT 1A Subcategories

Back 15

-ACAT 1AM: MDA is at DoD level

-ACAT 1AC: MDA is at Component level

Front 16

Analysis of Alternatives

Back 16

Primary purpose is to assess the potential materiel solutions to satisfy the capability need documented in the approved Initial Capabilities Document. Key product of the Material Solutions Analysis phase of the Acquisition process.

Front 17

Analysis of Alternatives Study Guidance

Back 17

Prepared by Director, CAPE

Front 18

Cost Analysis Requirements Description - CARD

Back 18

1. Required for all ACAT 1 and ACAT 1A programs

2. Updated for all Milestone and program reviews

3. Prepared by program manager

4. Identifies detailed requirements of Acquisition system:

-technical requirements

-programmatic data

-operational characteristics

-assessment of risks and mitigation efforts

5. Forms basis for preparation of cost estimates

Front 19

Life Cycle Cost Estimates

Back 19

1. Appropriation Category

2. Work Breakdown Structure

3. Life Cycle Cost Categories

-R&D

-Investment

-operations and support

-Disposal

Front 20

ACAT 1 Life Cycle Cost Estimates

Back 20

1. Program Office Estimate

2. Component Cost Estimate

3. Independent Cost Estimate

Front 21

Program Acquisition Unit Cost

Back 21

Total cost for development and procurement and MILCON divided by the number of fully configured end items to be produced for the Acquisition program.

Front 22

Average Procurement Unit Cost

Back 22

Total of funds programmed to be available for obligation for procurement by the number of fully configured end items to be procured.

Front 23

Life Cycle Cost Composition

Back 23

Front 24

Work Breakdown Structure

Back 24

Product oriented family tree composed of hardware, software, services, data and facilities that displays and defines the product to be developed and/or produced. It relates the elements of the work to be accomplished to each other and to the end product.

Front 25

Cost As An Independent Variable

Back 25

Front 26

Cost Estimating Methods

Back 26

1. Analogy

2. Parametric

3. Engineering

4. Actuals

5. Expert

Front 27

Analogy Cost Estimating Method

Back 27

1. Based on direct comparison with historical information of similar existing activities, systems, or Components

2. Compares proposed new system with ONE existing similar system for which there is accurate cost and technical data.

3. Strengths: quick, inexpensive, easy to change

4. Weaknesses: subjective, imprecise

Front 28

Parametric Cost Estimating Method

Back 28

1. Known as statistical or top down method

2. Based on physical attributes or performance characteristics and their relationship to highly aggregated component costs.

3. Uses database of elements from similar systems.

4. Uses multiple similar systems

5. Most beneficial in earlier stages of the system or life cycle.

6. Strengths: uses cost Estimating relationships, easy to do what if drills, relatively inexpensive

7. Weaknesses: moderately subjective, precision only as good as the validity of data evaluated

Front 29

Engineering Cost Estimating Method

Back 29

1. Known as bottom up method

2. Requires extensive knowledge of system characteristics

3. Each WBS element is costed to build the cost estimate for the entire program.

4. Strengths: very accurate, limited subjectivity

5. Weaknesses: very expensive and time consuming, difficult to do what if drills, usually performed by contractors

Front 30

Actual Cost Estimating Method

Back 30

1. Actual cost data of SAME system

2. Strengths: little subjectivity, very accurate

3. Weaknesses: limited applicability, budget may already be submitted

Front 31

Expert Opinion Cost Estimating Method

Back 31

1. Subjective judgment of an experienced individual or group

2. Use if time does not permit a more thorough analysis

3. Document source of Opinion of experts

4. List attributes of the source

5. Seek convergence with Delphi Technique

Front 32

Delphi Technique Cost Estimating Method

Back 32

Front 33

Fixed price contracts

Back 33

Contractor bears significant financial risk.

Front 34

Cost reimbursement contracts

Back 34

The government promises to pay all allowable, allocable, and reasonable costs incurred on the contract. The government bears a potential significant financial risk.

Front 35

Earned Value Management

Back 35

An integrated tool that relates technical performance to its associated cost and schedule, measures the work progress in objective terms, and states the value of the work completed in dollars. Used to measure contractor performance.

Front 36

EVM on DoD Contracts

Back 36

1. Applicable for cost or incentive contracts valued at $20M or more.

2. For such contracts valued at less than $20M, its use is optional and a risk based decision for the government.

3. Contracts at $50M or more, contractors system must comply with guidance.

4. Discouraged for firm fixed price contracts of any dollar value

Front 37

Cost variance

Back 37

Result of comparing Actual Cost of Work Performed to the Budgeted Cost of Work Performed.

Front 38

Schedule Variance

Back 38

Result of comparing the Budgeted Cost of Work Scheduled to the Budgeted Cost of Work Performed.

Front 39

EVM Analysis

Back 39

Front 40

Critical Path

Back 40

Longest possible continuous path from the start event to the terminal event.

Front 41

Economic Analysis

Back 41

1. Systematic approach to the problem of choosing the best method of allocating scarce resources to achieve a given objective.

2. Each alternative must be considered and its life cycle costs and benefits evaluated.

3. All costs and benefits are adjusted to present value.

Front 42

Economic Analysis Model

Back 42

1. Establish objective

2. Formulate assumptions

3. Identify constraints

4. Determine/identify alternatives

5. Estimate costs and benefits of each alternative

6. Compare alternatives

7. Perform sensitivity analysis

8. Report results and recommendations

Front 43

Quantifiable Benefits

Back 43

1. Cost savings

2. Cost avoidance

3. Productivity improvement

Front 44

Cost Savings

Back 44

Result in the actual reduction of an approved program if the benefit occurs during the POM period.

Front 45

Cost Avoidance

Back 45

A reduction or elimination of some future resource requirement.

Front 46

Productivity Improvement

Back 46

A reduction in future personnel time and effort requirements associated with a function or assigned task that has been included in an approved program.

Front 47

Non-quantifiable Benefits

Back 47

Adaptability

Availability

Functionality

Maintainability

Morale

Security

Upgradability

Versatility

Front 48

Descriptive Statistics

Back 48

Do not project or imply anything outside the specific data set. Most common types include:

1. Measures of central tendency

2. Measures of dispersion

3. Frequency distribution

4. "Skewed" distribution

Front 49

Measures of Central Tendency

Back 49

Mean

Median

Mode

Front 50

Measures of Dispersion

Back 50

Range

Standard Deviation

Front 51

Frequency Distribution

Back 51

Histogram/bar chart

Frequency polygon

Front 52

Inferential Statistics

Back 52

Methods used to examine a sample of a population and make inferences about the entire population based on analysis of the sample data.

1. Proportion and Percentage

2. Measures of Correlation

Front 53

Constant Dollars

Back 53

The result of having the effects of inflation removed.

Front 54

Current Dollars

Back 54

Then-year dollars are expressed in the value of the year in which a cost is expected to occur, and therefore reflect the effect of inflation.

Front 55

Break-even Point

Back 55

Investment÷Savings

Front 56

Business Process Reengineering/Business Process Innovation

Back 56

1. Goal is to improve operating Effectiveness by redesigning the fundamental processes of the organization.

2. Involves a radical redesign of key business processes rather than incremental actions.

Front 57

Business Process Reengineering Steps

Back 57

1. Create a Reengineering framework

2. Identify customers and determine needs

3. Map the existing process

4. Measure process performance

5. Redesign the existing process

6. Implement the design

Front 58

Reengineering Team Composition

Back 58

1. Best to keep under 10 players.

2. Those who dont know process

3. Those who know process well

4. Customers, if possible

5. Some representing impacted organizations

6. Technology gurus

7. Best and brightest

8. Some from outside Organization

Front 59

Lean Six Sigma Continuous Process Improvement

Back 59

1. Define

2. Measure

3. Analyze

4. Improve

5. Control

Front 60

Benchmarking

Back 60

1. Measuring performance against the best in class Organization

2. Adapting best practices

3. Achieving new performance levels

Front 61

Government Performance and Results Act Purposes

Back 61

1. Improve confidence in capability of federal government

2. Initiate program performance reform

3. Improve federal program Effectiveness and public accountability

4. Help federal managers improve service delivery

5. Improve Congressional decision making

6. Improve internal management of the federal government

Front 62

Government Performance and Results Act (GPRA) Modernization Act of 2010 Agency Strategic Plan

Back 62

Expanded the original purposes of GPRA to include a strategic plan which must address:

1. Short but comprehensive mission statement

2. Outcome oriented long term goals and objectives

3. Performance goals and how they will be met

4. Federal priority goals if assigned to the agency

Front 63

GPRA Modernization Act of 2010 - Agency Performance Plan

Back 63

1. Defines the level of performance to be achieved during the submittal year and the next FY.

2. May be used to structure the agency's budget submission or be a separate document that accompanies it.

Front 64

GPRA Modernization Act of 2010 - Agency Performance Report

Back 64

1. Annually required to be posted to the agency's website no less than 150 days after the end of the FY.

2. Provides agency's progress in achieving goals and objectives described in the Strategic plan and performance plans.

Front 65

Outcome Measures

Back 65

Assessment of the qualitative results of a program activity when compared to it's intended purpose

Front 66

Output Measures

Back 66

Anything produced by an organisation that can be tabulated, calculated, or recorded and can be expressed in a quantitative or qualitative measure

Front 67

Input

Back 67

All processes and Resources used to accomplish short-term goals and outcomes. Usually can be evaluated in monetary terms.

Front 68

Miscellaneous sources of funds

Back 68

- Agricultural and grazing leases

- Recycling

-sale and out-lease

- fish and wildlife conservation program

-energy savings at military installations

Front 69

Outsourcing

Back 69

Responsibility remains with government:

1. Contracts

2. Franchises

3. Volunteers

Front 70

Privatization

Back 70

Responsibility shifts from government:

1. Family housing

2. Utilities