J-6_Attachment_TOC_Model_Assumptions.pdf

ASCV J Attachment Unclassified Page 1

UNCLASSIFIED

Total Ownership Cost Model Assumptions

General Assumptions The TOC Model shall be a flexible tool which enables changes to acquisition strategy and program execution. An important purpose of the TOC Model is to be able to project impacts on ownership cost due to design and procurement decisions. The TOC Model shall cover contractor costs (non-recurring and recurring) over the ASCV life cycle, starting at Preliminary Design and ending after Full Rate Production (FRP). In sum, the TOC Model, and any associated documentation, shall reflect current costs, cost basis, major assumptions, production costs, and cost reduction efforts over time for key cost drivers. The TOC Model shall:

• Exhibit program costs with fee set as a variable. A separate fee variable shall be provided for each program phase (Preliminary Design, EMD, Production, and O&S).

• Use Prime Contractor and Sub-Contractor labor costs based on proposed rates

• Include cost summaries both in Constant Year 2016 (CY16) $ and Then Year (TY) $. De-escalation guidance:

– The TY estimate shall be developed using the contractor proposed rates

– The CY16 estimates are then the result of the following de-escalation instructions. Use the latest OSD rates from NCCA website (www.ncca.navy.mil). Use “Weighted” indices appropriate to each appropriation, rather than “Raw” indices.

– The following appropriations shall be used:

- Development: RDT&EN (Purchases) = Research, Development, Test &

Evaluation, Navy (1319)

- Production: OPN, Shipbuilding & Conversion, Navy (1611)

Development Assumptions:

The model shall include, and segregate, all non-recurring and recurring costs associated with the development of ASCV. Development costs shall be organized in three separate phases:

• Preliminary Design Phase (Phase I)

• Engineering Development Model (EDM) Design and Build Phase (Phase II) which includes contractor testing

• Post EDM Delivery (Phase II) which includes EDM Vehicle Test Support, Logistics

Management, and Engineering Studies The development portion of the TOC Model shall include clear documentation and underlying data for the hardware design, software design, and testing efforts. The TOC Model shall include:

• Hardware:

– All costs to design and deliver the ASCV EDM, including hull and structure, suspension and steering, vehicle electronics, auxiliary subsystems, navigation, and Integration, Assembly, Test, and Checkout.

– A system block diagram that defines the component terminology. In addition, provide a table that captures components, component quantities in each vehicle, and a mapping to the CWBS.

• Software:

– Include Development, Coding, Testing and Integration (DCTI) and all non-DCTI activities for software components. Non-DCTI activities include: program management, system engineering, configuration management, quality assurance, factory qualification testing, other direct costs and independent verification and validation

– Provide both Delivered Source Lines of Code (DSLOC) and Equivalent Source Lines of Code (ESLOC) estimates by Computer Software Configuration Item (CSCI)

- Include New, Modified and Reuse assumptions and method to derive ESLOC

– Provide DSLOC counts in both Logical and Physical using the Unified Code Count

(UCC) model, release 2015.12 (available online at:

ASCV J Attachment Unclassified Page 2

UNCLASSIFIED

http://csse.usc.edu/ucc_new/wordpress/2015/12/30/ucc-version-2015-12) for all software supported by the UCC tool (see UCC_user_manual_v2015.12).

- For software not supported by UCC, the Contractor shall use Count Lines of Code (CLOC), version 1.64 (available online at http://cloc.sourceforge.net/). The Contractor shall clearly indicate to the Government which counting tool is used for all software components.

– Provide software development costs at the individual CSCI level

– Provide the productivity and ESLOC metrics assumptions and basis at the individual

CSCI level

• Testing: The ASCV model shall include costs for the following test phases.

– Contractor Testing. This phase will be conducted by the contractor to verify the system meets contractual requirements.

– Developmental Testing. This phase will verify the system meets the performance specifications that require specific or challenging operational environments, or U.S. Navy or other DoD assets. This period will be used to further define the performance envelop of the system.

– Operational Assessment. This phase will identify risks towards the successful completion of Operational Testing (OT), specifically Initial Operational Test and Evaluation

(IOT&E).

– Operational Testing. This phase will consist of TECHEVAL (DT) and OT, including

IOT&E.

Production Assumptions:

The model shall include, and segregate, estimated non-recurring and recurring costs associated with the production of the ASCV. The production portion of the model shall reflect the procurement profile shown in Table 1.

Table 1 – ASCV Procurement Profile

Year Total 2023 2024 2025 2026 2027 Quantity 44 4 8 10 10 12

The TOC Model shall include projected costs, where available, for:

• Transition to production required to transition the EDM to Low Rate Initial Production (LRIP)

• Vehicle production unit cost by CWBS for each of the 44 vehicles

• Fabrication efforts

• Initial spares for each vehicle

• Initial wholesale spares and their repair and/or replenishment costs, when available.

• ASCV production and sustainment engineering

• Support to Government test events and any contractor testing

• Engineering Change Proposals (ECPs), including production software refinements

The TOC Model shall document assumptions, where available for:

• A basis for step factors from EDM to Production

• A basis for learning curve assumed for production