Cost Analysis Chapter 1 Flashcards
(32 cards)
Appropriation
Grants budget authority to be obligated
Budget Authority
Permission to obligate a future outlay; credit card spending limit
Obligation
Legally binds for an expenditure; purchasing an item with the credit card.
Expenditure
electronic funds transfer or check
Responsible for preparing the life cycle cost estimate
Program Manager
Three ways to group LCC of a program
Funding Appropriation Categories, WBS, and Life Cycle Cost Categories
Appropriation categories include:
RDT&E, Procurement, O&M, MILCON, MILPERS, and the stakeholders include Congress, Comptroller, and Component Controllers
DoD 5000.4 defines 3 categories:
R&D, Investment, and O&S, (Disposal)
Program Acquisition Cost includes:
Development Cost, MILCON, Procurement
Procurement Cost includes:
Weapon System Cost and Initial Spares
Weapon System Cost includes:
Flyaway Cost (Prime Mission Equipment and Support Items)
Life Cycle Costs include:
Program Acquisition Cost and O&S Cost and Disposal Cost
Total Ownership Cost
includes the elements of life cycle costs as well as the indirect costs.
Operating and Support Cost
includes costs for supplies and maintenance for a system once it is fielded.
Analysis of Alternatives answers
What is the most cost effective way to meet this mission need?
DoD 5000.4 provides
Cost Estimates and Cost Analyses
Component Cost Estimate
Cost estimate prepared by a component independently from the program office
DCAPE
Director of Cost Assessment and Program Evaluation
Economic Analysis
prepared by the program office for ACAT 1A programs at Milestone B.
CARD
The program management office is responsible for preparing the CARD
The ACAT 1D program require:
POE, CCE, and ICE
The ACAT 1C require:
POE and the ICE
The ACAT 1AM require:
EA and CCE
CARD
Cost Analysis Requirements Description
