OT-16-20006_LCC_ISA_Rpt_PID0002_(3)20151019.pdf

DATA ITEM DESCRIPTION

Title: Life Cycle Cost (LCC) and Independent Schedule Assessment (ISA) Report Number: OT-16-20006 Approval Date: 20151019

AMSC NUMBER: N/A Limitation: N00019-15-R-0081

DTIC Applicable: N/A GIDEP Applicable: N/A

Preparing Activity: PMA-213

Applicable Forms: N/A

Use / Relationship: Provides the Government with the contractor’s assessment of LCC, in the Electronic System Work Breakdown Structure (WBS), 60 days after contract award and on a quarterly basis. The report also provides information for Government cost risk assessment.

This DID contains the format, content, and intended use information for the data product resulting from the work tasks described in the contract SOW. This DID is for one time use for

N00019-15-R-0081.

Requirements:

1. Format. The Contractor’s format is acceptable.

2. Content. The content of this report shall contain the following:

1. APPLICATION / INTERRELATIONSHIP

1.1 This data item description contains the format and content preparation instructions for the data product generated by the specific and discrete task requirement as delineated in the contract.

1.2 DOD 5000.4M requires an Independent Cost Analysis (ICA) be developed by an independent team using independent methodology for each system subject to Defense

Acquisition Board (DAB) review or designated for a budget ICA.

2. PREPARATION INSTRUCTIONS

2.1 Reference Documents. The applicable issue of the documents cited herein, including their approval dates and dates of any applicable amendments, notices, and reissues, shall be as specified in the contract.

2.2 Genera1. The Life Cycle Cost and Independent Schedule Assessment Report shall include the following sections:

2.2.1 Executive Summary. The executive summary shall be limited to one page, briefly describing the program and stating the results and conclusions of the report.

2.2.2 Table of Contents. List of Figures and List of Tables.

2.2.3 Introduction. Brief description of the weapon system in terms of schedule phase, program requirements, etc.

2.2.4 Ground Rules and Assumptions. This section shall describe key assumptions made in the costing of the system including quantities, schedule production rates, state of technology, program base year, inflation rates, hardware and software configuration and base line used.

2.2.5 Contract Work Breakdown Structure. This section shall list the Contract Work Breakdown

Structure (WBS) down to at least the level specified in the Statement of Work. If the WBS is not specified, the WBS used shall conform to the guidelines in the most current MIL-STD 881 and DODI 5000.33.

2.2.6 Methodology. The methodology section shall include a discussion of the methods used to generate the cost estimate for each WBS element. Learning curve first unit cost, slopes and type of curve (unit or cumulative average) shall be stated along with backup information used to determine these parameters. This section shall make up the bulk of the report containing enough information to substantiate the entire estimate. Included shall be discussions of any analogies, why they are used, and how the actual costs were modified to fit the new components. If man-hour buildups are used, discussions shall center on the rationale used for man-loading levels.

2.2.7 Estimate Results. The estimate results section shall contain the contractor's cost estimate in base year dollars by the WBS listed in the assumption section. All costs shall be fully burdened with overhead, G&A and fee in base year dollars. The costs shall be shown for all phases of the program, Research and Development, Investment (Production), Operations and Support (O&S), and Disposal unless otherwise specified. Actual cost shall be used upon phase completion. In addition, a summary level time phased estimate shall be submitted for Research and

Development (Technology Development and Engineering Manufacturing Development phases), Production, and O&S.

2.2.9 Conclusion. The conclusion section is for the contractor’s cost analysis to communicate findings to the Government. This section shall mention cost of alternative designs, trade studies, potential cost reduction initiatives, pending engineering changes, and accuracy or confidence levels (S-Curve) of the results section.

2.2.10 Cost Track. This section shall be used to track changes from the previous reports generated on the same system. The track shall use the same WBS as the initial report and discuss the reason for each change. Categories of changes include changes in program due to design, updates of estimates, quantity changes and schedule updates. Each change shall identify specifically what changed since the last report and why. An example would be an estimating change in learning curve slope from 90% to 92% based on actual data for the first several lots of this program.

2.3 Breakout of LCC. The LCC breakout shall follow DOD 5000.4-M, DOD Cost Analysis

Guidance and Procedures, guideline which provide standardized definitions of cost items that in total comprise system LCC.

2.4 Security Classification. Report is to be unclassified where possible.

2.5 Format. LCC model shall be in a Microsoft Excel format that is compatible with the government customer’s current version of Microsoft Excel. Microsoft Excel 2007 workbook or a later file format version of Excel will be acceptable if the government customer has no problems with compatibility.

END OF OT-16-20006