Module 5

Question 1

Select the term that best fits the following definition: “An administrative reservation of funds by the local comptroller, in anticipation of a future obligation.

Answer 1

Committment

Question 2

Program Office Estimate (POE)

Answer 2

based on a requirement by DoDI 5000.02, which requires the program office to prepare a LCC estimate for all ACAT I and ACAT IA programs, which should cover all costs from program initiation through disposal.

ACAT II and III programs, cost estimates will be forwarded through the Service’s Assistant Secretary for Financial Management, then to one of the following Service Decision Panels for the milestone decision:

• -Navy Program Decision Meeting (NPDM)
• -Air Force Systems Acquisition Review Council (AFSARC)
• -Army Systems Acquisition Review Council (ASARC)

Question 3

Who prepares the component cost estimate?

Answer 3

Service Cost Analysis Agency

Question 4

Three types of cost estimates

Answer 4

Program Office Estimate

Component Cost Estimate

Independent Cost Estimate

Question 5

When is the Cost Component Estimates mandatory for MDAPS?

Answer 5

Milestones A, B and C

Full-Rate Production (FRP) Decision Review

Question 6

Who prepares the Independent Cost Estimate?

Answer 6

The OSD Cost Assessment and Program Evaluation (CAPE)

Question 7

When is an Independent Cost Estimate required?

Answer 7

MDAPs and MAIS for which the USD (A&S) is the MDA

ACAT IC and IAC programs at any time considered appropriate by the CAPE or upon the request of the USD (A&S) or the MDA

Question 8

Life Cycle Cost

Answer 8

Defined as the cost to the Government of acquisition and sustainment of a system over its useful life.

Question 9

Life Cycle Costs are divided into what five appropriation categories?

Answer 9

Operation and Maintenance

Military Personnel

RDT&E

Procurement

Military Construction