Attachment 2 Affordability Assessment Guidance.pdf

Navy ManTech Program

REV N OCT24

Affordability Assessment Guidance

Attachment:

1. Sample Tabs

A. PURPOSE

Reducing the acquisition cost of current and future platforms is a critical goal of the Navy. As a result, ManTech adopted an affordability investment strategy in FY07 and is currently focused on the affordability improvements for key naval platforms. Navy ManTech aids these key programs in achieving their respective affordability goals by transitioning needed manufacturing technology which, when implemented, results in a cost reduction (the term "cost reduction" includes both cost savings and cost avoidance) measured as a per-hull or per-aircraft benefit.

To review progress toward meeting both platform and ManTech affordability goals, affordability assessments are conducted semi-annually. These assessments are intended to be an estimated rough-order-of-magnitude (EROM) potential reduction, assuming the full scope of applications identified is implemented by the stakeholder and its manufacturing facility. Because actual implementation for many projects occurs well after the completion of the ManTech project, these estimates are not contractually binding. In these assessments, the potential cost reduction per project as well as estimated total potential cost reduction per platform are identified and concurred with by the platform Program Office.

B. DEFINITIONS

For the Affordability Assessment spreadsheet, Navy ManTech uses the following definitions to classify the status of a project:

Active: Project is executing within the period of performance established by the contract modification or subsequent modifications that change the project period of performance.

Funding has been allocated on contract to execute the project. For COEs without a contract, a project is considered active after the COE receives written direction from the PO / COR to initiate the project.

Completed: Project has completed technical activities, and all deliverables, including the Final Report and ManTech Data Call documents, have been submitted to the Navy ManTech Program Office and the Navy ManTech Support Team.

Completed Pending Closeout: Project has completed technical activities, but all deliverables, including the Final Report and ManTech Data Call documents, have not been submitted to the Navy ManTech Program Office and the Navy ManTech Support Team.

Terminated: COE has received authorization from the ManTech PO / COR to end the project after it was awarded and funds were allocated and executed against it via a contract modification.

C. REQUIRED TIMELINE

COEs are required to update Affordability Assessment data on a semi-annual basis. Due dates for submittal are 20 Feb and 20 Aug. The Navy ManTech Support Team will send an e-mail to the COEs on approximately 1 Feb and 1 Aug as a reminder of the Affordability Assessment data call.

D. PROCESS / APPROVAL CYCLE

1. The Navy ManTech Support Team will use a secure method, such as encrypted email, DoD SAFE (https://safe.apps.mil/), or a COE SharePoint site, to provide each COE with its most recent Affordability Assessment Workbook. Additional columns that are hidden and used exclusively by the Navy ManTech Program Office have been added to each spreadsheet. COEs should not unhide or change these columns.

2. COE will save a copy of the Affordability Assessment Workbook using the nomenclature noted in Section G. File Name. COEs should review each column of the spreadsheet and remove, add, or modify the information / data in the workbook. Section F provides definitions for all data.

Note that COEs should enter the current Navy ManTech Investment for each project in column P. When EROM cost reduction per hull / aircraft is reported for multiple platforms, the investment should be split among platforms. For example, VCS / CLB projects at General Dynamics Electric Boat or CVN 78 / VCS projects at Newport News Shipbuilding.

If reporting on multiple projects, check Column D.

3. COEs will upload the updated COE Affordability Assessment Workbook to the COE tab of the Navy ManTech Projects Database (NMPD), if available, or send the spreadsheet to the PO / COR and the Navy ManTech Support Team in a secure manner.

4. The Navy ManTech Support Team will suggest fidelity / weighting factors to appropriately account for the confidence that each project will produce the anticipated cost reduction. The developed cost-reduction fidelity factor for each project will be reviewed with the appropriate platform Program Office for the purpose of obtaining its concurrence.

5. Once platform Program Office concurrence is received, the Navy ManTech Support Team will enter the fidelity / weighting factors into the Master Affordability Assessment Workbook to produce a probable EROM cost-reduction estimate per hull or aircraft. The probable EROM cost-reduction value represents the estimate of potential benefit of the project as agreed to by both the ManTech Program Office and the stakeholder platform Program Office.

E. FORMAT

The Affordability Assessment Workbook should be submitted in Microsoft Excel; do not submit a PDF file. The Affordability Assessment Workbook has multiple tabs: Acquisition Affordability (which includes a tab for each platform) and Life-Cycle Affordability (Life-Cycle tab).

For all tabs:

All affordability projects should be included in the Affordability Assessment Workbook. Canceled, Terminated, Pending, Capability Acceleration only (if a project is both Capability Acceleration and Affordability, it should be reported on), 6.2 Navy Manufacturing Applied Research, and Non-ManTech projects should not be included.

All affordability projects, regardless of whether they have been identified as Acquisition Affordability projects, Life-Cycle Affordability projects, or both, should appear on all applicable tabs.

Projects are grouped by platform in ascending project number order. Because a number of ManTech projects support more than one platform, a project may show up under multiple platform tabs. Place an X in Column D – Multiple Platform Implementation for any project that is listed on multiple tabs.

For projects involving multiple COEs, only the lead COE should report on the potential cost-reduction estimates. Support COEs should provide comments in the appropriate cost-reduction rationale column (defined in Section F) to help justify the identified benefit but should not include any cost-reduction estimates themselves.

All dollar figures should be entered in $ (not $K or $M).

All new Active projects should be added to the Acquisition Affordability and Life-Cycle Affordability tabs. Indicate with an X in Col K or L if the project is Acquisition or Life-Cycle.

Add projects in the appropriate Platform tabs in ascending project number order.

The COE should carefully review all entries for every project on both spreadsheets and enter the appropriate data in all fields in accordance with the requirements of Section F. Column Definitions.

F. COLUMN DEFINITIONS

ACQUISITION AFFORDABILITY (Platform Tabs)

Note: The information requested in this section applies only to acquisition cost savings and cost avoidance.

A. Project Number: Official ManTech project number.

B. Project Title: Complete official title of project.

C. Platform: Platform on which the ManTech-developed solution is being or will be implemented.

D. Multiple Platform Implementation: If this column is blank, the platform is the only platform for implementation. For projects that have multiple platforms implementations, enter the platform abbreviations, e.g., CVN, DDG, VCS, CLB, etc. (there may be more than one secondary platform per project). For projects with multiple platform implementation, make sure that the funding is accurately split in Column P – Navy ManTech Investment.

E. COE: Name of COE.

F. Status: See B. Definitions. Active / Completed / Completed Pending Closeout / Terminated.

G/H. Start Date: Month and year listed in the current contract mod for Start Date.

I/J. End Date: Month and year of end date listed in the current contract mod.

K/L. Acquisition / Life-Cycle: An X in the Acquisition column (Col J) denotes that the project is an Acquisition Affordability project; an X in the Life-Cycle column (Col K) denotes that the project is a Life-Cycle Affordability project, and an X in both columns denotes that the project has both Acquisition and Life-Cycle Affordability benefits.

M. Implementation Quarter: Assuming successful transition and implementation, quarter of actual or intended implementation. (Dropdown)

N. Implementation Year: Assuming successful transition and implementation, year of actual or intended implementation. (Dropdown)

O. First Vehicle Supporting Implementation: Assuming successful transition and implementation, identify the first vehicle (ship hull or aircraft) number that will benefit from the project solution.

P. Navy ManTech Investment ($): Provide the most recent planned investment for the project. If the project has benefits for multiple platforms, split the funding evenly among these platforms. See instructions in Col D.

Q. EROM Cost Savings per Vehicle: A single cost-savings estimate, represented as dollar cost-savings value per vehicle ($/hull) or ($/aircraft). This value should be the most likely cost-savings value and not the most optimistic or pessimistic value and is provided / updated by the COE (or Lead COE, if applicable) at every semi-annual assessment. The term EROM reflects the potential large variation likely when estimating savings on a developmental project’s expected results. (Please see Note after R below.)

R. EROM Cost Avoidance per Vehicle: A single cost-avoidance estimate, represented as dollar cost-avoidance value per vehicle ($/hull) or ($/aircraft). This value should be the most likely cost- avoidance value and not the most optimistic or pessimistic value and is provided / updated by the COE (or Lead COE, if applicable) at every semi-annual assessment. The term EROM reflects the potential large variation likely when estimating cost avoidance on a developmental project’s expected results.

NOTE for Columns Q & R: Cost savings occur when the cost of the product or process falls below an established budgeted amount. Cost avoidance occurs when the original product or process cost exceeds the budgeted amount but is reduced by the implementation of the project solution. In some cases, the initial cost reduction is considered cost savings until that savings is captured as a permanent cost reduction for future hulls / aircraft. At that point, the cost reduction becomes a cost avoidance for these future hulls. Unless both cost savings and cost avoidance occur on EVERY hull or aircraft, report the total cost reduction (cost savings plus cost avoidance) as a single entry in Column R, Cost Avoidance, and leave Column Q, Cost Savings, blank.

S. Non-ManTech Project Transition Funding: Total estimated funding required to fully develop and transition the technology to the end user that is provided by sources outside of Navy ManTech. This funding may be required for such activities as product certification and prototype test and evaluation.

T. Non-recurring Engineering Cost: Total estimated cost to make changes to the current process to allow implementation of the new project solution into production.

U. First-Time Implementation Cost: Cost to introduce the project solution into production or onto the targeted vehicle for the first time.

V. Recurring Implementation Cost per Vehicle: Cost to implement the project solution after the initial implementation.

W. Acquisition Cost-Reduction Rationale: This is an essential part of the COE’s affordability assessment for each project as it will determine the ManTech Program Office and platform Program Office confidence in the acquisition cost savings and/or avoidance per vehicle estimate. It is recognized that new Active projects may have limited supporting data and that the industrial facility or platform Program Office may possess the best supporting data.

However, all information, whether quantitative or qualitative, should be made available in this section. Note that it is also important to review and update, if appropriate, the cost-reduction rationale at every semiannual update request. The rationale is used by the ManTech Program Office and the platform Program Office to establish a cost-reduction fidelity / weighting factor.

LIFE-CYCLE AFFORDABILITY (Life-Cycle Tab)

(NOTE: Although this section highlights Life-Cycle Affordability information, the assessment currently gathers only the maintenance portion of that life-cycle cost reduction. The information requested in this section currently applies only to maintenance cost avoidance.)

A. Project Number: Official ManTech project number.

B. Project Title: Complete official title of project.

C. Platform: Platform on which the ManTech-developed solution is being implemented.

D. Multiple Platform Implementation: If this column is blank, the platform is the only platform for implementation. For projects that have multiple platforms implementations, enter the platform abbreviations, e.g., CVN, DDG, VCS, CLB, etc. (there may be more than one secondary platform per project). For projects with multiple platform implementation, make sure that the funding is accurately split in Column P – Navy ManTech Investment.

E. COE: Name of COE.

F. Status: See B. Definitions. Pending / Active / Completed / Completed Pending Closeout / Terminated

G/H. Start Date: Month and year listed in the current contract mod for Start Date.

I/J. End Date: Month and year of end date listed in the current contract mod.

K/L. Acquisition / Life-Cycle: An X in the Acquisition column (Col J) denotes that the project is an Acquisition Affordability project; an X in the Life-Cycle column (Col K) denotes that the project is a Life-Cycle Affordability project, and an X in both columns denotes that the project has both Acquisition and Life-Cycle Affordability benefits.

M. Implementation Quarter: Assuming successful transition and implementation, quarter of actual or intended implementation. (Dropdown)

N. Implementation Year: Assuming successful transition and implementation, year of actual or intended implementation. (Dropdown)

O. Frequency of Benefit (Every / Other): The benefit is assumed to occur at repair availabilities. Two options can be selected – either the cost reduction occurs at Every future repair availability or occurs on alternating repair availabilities (every Other). If the project solution cost avoidance occurs at a different interval, select the best option for the frequency and annotate the difference in the Life-Cycle Cost Reduction Rationale column (Col V).

P. Navy ManTech Investment ($): Provide the most recent planned investment for the project. If the project has both life-cycle and acquisition benefit, split the funding evenly between the acquisition and life-cycle affordability work sheets.

Q. EROM Cost Avoidance per Selected Restricted Availability (SRA): Enter the estimated cost avoided on the vehicle repair as a result of the project solution at a targeted repair availability.

R. Non-ManTech Project Transition Funding: Enter the total estimated funding required to fully develop and transition the technology to the end user. This funding may be required for such activities as product certification and prototype test and evaluation.

S. Non-recurring Engineering Cost: Enter the total estimated cost to make changes to the current process to document the implementation of the new project solution into production.

T. First-Time Implementation Cost: Enter the cost to introduce the project solution into production or onto the targeted vehicle for the first time.

U. Recurring Implementation Cost per SRA or Repair Cycle: Enter the cost to implement the project solution after the initial implementation.

V. Life-Cycle Cost-Reduction Rationale: This is an essential part of the COE’s affordability assessment for each project as it will determine the ManTech Program Office and platform Program Office confidence in the maintenance cost avoidance per SRA or aircraft repair cycle. It is recognized that new Active projects may have limited supporting data and that the industrial facility or platform Program Office may possess the best supporting data. However, all information, whether quantitative or qualitative, should be made available in this section. Note that it is also important to review and update, if appropriate, the cost-reduction rationale at every semiannual update request.

The rationale is used by the ManTech Program Office and the platform Program Office to establish a cost-reduction fidelity / weighting factor at every updating cycle.

G. FILE NAME

The file name for the Affordability Assessment Workbook should represent the most recent update. File names should be in the following format: {COE acronym} Affordability Assessment {MMMYY} i.e., CMTC Affordability Assessment FEB24.xlsx

Attachment 1: Sample Tabs

The Affordability Assessment Workbook has several tabs. Acquisition Affordability (Platform tabs), Life-Cycle Affordability (Life-Cycle tab).

Acquisition Affordability Spreadsheet (Platform Tabs) Column Headings

Life-Cycle Affordability Spreadsheet (Life-Cycle Tab) Column Headings