9003-0016.doc

HQ AFSPC

CONTRACT INFORMATION

Headquarters, Air Force Space Command (HQ AFSPC) Directorate of Requirements (A5) Deterrence and Strike Division (A5M) develops, documents, and staffs space and missile requirements supporting DoD, civil, and national users. The division specifies requirements for space and missile systems, with special emphasis on Deterrence and Strike offensive and defensive missile systems, and their entire support structure. It also provides deterrence, strike, force enhancement, and force application warfighting capability to Unified commands.

8283 Greensboro Drive

McLean, VA 22102-3838

(Base + 1 Opt Yrs)

STATEMENT OF WORK (SOW)

FOR

COST ANALYSIS AND ESTIMATING SUPPORT

TO HEADQUARTERS AIR FORCE SPACE COMMAND (HQ AFSPC)

DIRECTORATE OF REQUIREMENTS (A5)

FORCE APPLICATIONS BRANCH (A5M)

PROMPT GLOBAL STRIKE (PGS) ANALYSIS OF ALTERNATIVES (AoA) 9003-0016 6 February 2006

1.0

DESCRIPTION OF SERVICES:

Requires cost analysis/estimating (CA/E) expertise supporting the AFSPC-led PGS AoA.

1.1

ORGANIZATION BEING SUPPORTED

USAF HQ AFSPC/A5M

(Deterrence and Strike Division)

150 Vandenberg Street, Suite 1105

Peterson AFB CO 80914-4280

Cost work led by

USAF HQ AFSPC/FMAQ (Acquisition Support Branch)

150 Vandenberg Street, Suite 1105

Peterson AFB CO 80914-4010

1.1.2

MISSION

Headquarters, Air Force Space Command (HQ AFSPC) Directorate of Requirements (A5) Deterrence and Strike Division (A5M) develops, documents, and staffs space and missile requirements supporting DoD, civil, and national users. The division specifies requirements for space and missile systems, with special emphasis on Deterrence and Strike offensive and defensive missile systems, and their entire support structure. It also provides deterrence, strike, force enhancement, and force application warfighting capability to Unified commands. Finally, it directs integration of new capabilities. HQ AFSPC/A5M is responsible for this study and provides oversight for the study lead officer. HQ AFSPC/FMAQ, with the responsibility for CA/E in HQ AFSPC, leads the Cost Analysis Working Group (CAWG).

Headquarters, Air Force Space Command (HQ AFSPC) Financial Management (FM) Acquisition Support Branch (FMAQ) is responsible for managing the investments funds for the nation’s space launch, missile warning, space surveillance, satellite control and intercontinental ballistic missile capabilities. The branch also performs cost analysis and estimating in support of both the acquisition and operations and maintenance of space and missile systems for the MAJCOM.

1.2

OVERVIEW OF SERVICES REQUIRED

Conduct OSD-directed analysis in support of AFSPC/DRM for the PGS AoA. The contractor shall support the study lead and the CAWG chair. The contractor shall team with other members of the CAWG to develop integrated (interservice) weapon system alternative Life Cycle Cost Estimates (LCCEs) and shall support other working groups on specific tasks. They must also interact with the ACC-led Next Generation Long Range Strike AoA team to minimize redundancies in effort as these two studies are being perform nearly in parallel and utilize common resources and data. The contractor must be able to perform extensively detailed analysis and estimating using models and tools which may include ACEIT, Crystal Ball, SEER, Excel, and must be proficient with use of these tools immediately upon contract award. The contractor must be able to obtain Non-Disclosure Agreements with multiple data providers/sources.

1.3

SPECIFIC REQUIREMENTS

1.3.1 REQUIREMENT 1. Concept Refinement (15% of overall effort) Overview: The contractor shall assist the CAWG lead in evaluating industry submissions and analysis in order to develop comprehensive, defendable, Life Cycle Cost Estimates for concepts identified by the Technology Alternatives Working Group (TAWG).

1.3.1.1 The contractor shall review and validate cost data from approximately 20 industry concept submissions, averaging ten pages each, and provide a lowest order Work Breakdown Structure (WBS) based Rough Order of Magnitude (ROM) Life Cycle Cost Estimate for each concept identified.

1.3.1.2 The contractor shall gather additional data, coordinate with Technology Alternatives and Operational Concepts Working Groups, and perform supplementary cost analysis on approximately ten industry concept submissions to support the concept refinement screening process. The contractor shall assist the CAWG in developing, documenting, and supporting concept refinement recommendations on the concepts selected for additional screening.

1.3.2 REQUIREMENT 2. Life Cycle Cost Estimating of Alternatives (40% of overall effort)

Overview: The contractor shall perform cost analysis using the operational concepts provided by the Operational Concepts Working Group (OCWG) to support concept refinement and development of Life Cycle Cost Estimates for approximately seven alternatives as defined by the Technology and Alternatives Working Group (TAWG). Contractor shall support costing weapon systems similar to the baseline systems of the ICBM, SLBM, B-52, B-2, and B-1.

1.3.2.1 The contractor shall provide comprehensive, WBS-based Life Cycle Cost Estimates that reflect the total government cost for each alternative. LCCE reporting must identify Research, Development, Testing, and Evaluation (RDT&E), Procurement, Operations and Support (O&S), and Disposal costs applicable to each alternative.

1.3.2.2 LCCE reports for each of the approximately seven alternatives must be presented on an incremental basis (monthly), must be consistently presented, and must provide sufficient documentation to facilitate repeatability and excursion. The contractor shall document all assumptions, ground rules, methodologies, specific data sources, and calculation of cost estimating relationships used in developing estimates or portions thereof.

1.3.3 REQUIREMENT 3. Sensitivity Analysis (5% of overall analysis)

1.3.3.1 The contractor shall support the CAWG lead in developing a robust sensitivity analysis to determine the dynamic nature of variables embedded in each of the approximately seven alternative Life Cycle Cost Estimates. Using cost models and tools, the contractor shall provide the CAWG with approximately five sensitivity reports over the course of the AoA to support decision making and analysis.

1.3.4 REQUIREMENT 4. Risk Analysis (10% of overall effort) Overview: This is an area receiving significant attention – better risk analysis should lead to better (more realistic) cost estimates, and improved Effectiveness Analysis.

1.3.4.1 The contractor shall perform comprehensive cost-related risk analysis on approximately four of the established study assumptions for each of the approximately seven alternatives. The contractor shall be well-versed in such risk tools as @RISK, Crystal Ball, Monte Carlo simulation, etc. upon contract award. The contractor shall update the risk analysis for each derivation of each alternative and assist the CAWG in identifying cost risks for each of the approximately five alternatives selected for Cost-Effectiveness analysis.

1.3.5 REQUIREMENT 5. Cost-Effectiveness Analysis (20% of overall effort) Overview: The contractor, along with the rest of the CAWG, shall work with the Effectiveness Analysis Working Group (EAWG) near the conclusion of each group’s respective analysis to perform the final analysis step; evaluation of each alternative in terms of Cost-Effectiveness. The Cost-Effectiveness analysis shall encompass approximately five alternatives, and the analysis performed in this step will form the basis of the recommended alternative(s) to the decision maker.

1.3.5.1 The contractor shall develop matrices and weighting schemes/scales for numerous key performance parameters. Based on LCCEs and coordination with the EAWG, the contractor shall provide analysis, identify key issues, and propose recommendations to the CAWG and the EAWG.

1.3.6 REQUIREMENT 6. Drafting Final Report / Briefing (10% of overall effort) Overview: The contractor shall assist with compilation of the final AoA report and the final AoA briefing, on an incremental basis throughout the analysis of alternatives. Sound documentation is the key to defendable, repeatable estimates and will be required to pass reviews at several milestones throughout the AoA. The Cost Analysis portion of the final report is expected to be between 100-120 pages, and must be written in a clearly understandable, yet detailed manner.

1.3.6.1 The contractor shall draft the final written cost analysis report not later than 45 days before end of the Task Order. The final written cost analysis report will include task background, objectives, study assumptions, description of alternatives, specific data collected, analyses conducted, conclusions, and recommendations. The final written cost analysis report, and supporting PowerPoint briefing, will be submitted to the CAWG and will support the Working Integrated Process Team (WIPT) schedule milestones. The final report and briefing will be prepared for the WIPT Chair in support of the WIPT schedule milestones.

1.3.7 Monthly Status Report: The contractor shall provide a monthly status report. (CDRL 0030)

2.0 SERVICES SUMMARY

3.0 GOVERNMENT FURNISHED PROPERTY AND RESOURCES

3.1 GOVERNMENT FURNISHED PROPERTY (GFP)

3.1.1 HARDWARE: N/A

3.1.2 SOFTWARE: N/A

3.2 GOVERNMENT FURNISHED RESOURCES

3.2.1 FACILTIES, SUPPLIES, AND SERVICES: The Government shall provide access to the Hartinger Building (Building 1) on Peterson AFB for the use of briefing and meeting facilities, telephone, copier, and fax machines.

3.2.2 MATERIALS AND OTHER DIRECT COSTS (ODCs): The Quality Assurance Evaluator (QAE) shall approve all contractor purchases costing less than $500. Any item exceeding this dollar threshold will require approval of the Contracting Officer prior to purchase.

4.0 GENERAL INFORMATION

4.1 SECURITY: To ensure continuity through the exploration of alternatives, at least one of the contractor personnel provided team members must meet SCI billet requirements at the time of contract award. Access to SCI is required for this task order.

4.2 ACCESS TO GOVERNMENT PROPERTY AND FACILITIES: The contractor will be allowed unescorted access to the Hartinger Building (Building 1) at Peterson AFB. Access to Government facilites, documents, and systems shall be in accordance with the basic award.

4.3 TRAVEL