5. O&S DOCUMENTATION REQUIREMENTS

5.1    INTRODUCTION

    This chapter discusses the documentation requirements for O&S cost estimates. The detailed documentation provided with each cost estimate serves as an audit trail for that estimate and as a primary source of the information presented to the CAIG at the summary-level briefing by the program sponsor. The following sections identify a basic cost documentation format and describe the specific types of information that must be provided.

5.2    DOCUMENTATION APPROACH

    This section presents a standard format for documenting O&S estimates reviewed by the CAIG. The stand-alone structure and data elements described represent the minimum information requirements. The guidelines presented for each section are not restrictive and should not limit good judgment in presenting any additional cost details relevant to an estimate. In adapting the basic structure (e.g., in determining the level of indenture or the cost element categories to include), the analyst should ensure that costs are allocated consistently within the CES and that the allocation criteria are explicitly identified in the documentation (to preclude double counting).

    The cost documentation should provide a concise, results-oriented presentation of key points in a manner that directs attention to the effects on O&S costs of the decisions under consideration. Exhibit 5-1 provides a standard framework for structuring this material. The format may be used regardless of the acquisition phase or estimating approach employed. It has been designed to permit a detailed review of the ground rules and assumptions, cost-estimating methods, data sources, and supporting rationale for estimates of O&S costs.


I.EXECUTIVE SUMMARY
A.    PURPOSE/SCOPE
B.    BACKGROUND
C.    SUMMARY
II.PROGRAM OVERVIEW
A.    PURPOSE/SCOPE
B.    TASKING/TEAM COMPOSITION
C.    PROGRAM SUMMARY
D.    GROUND RULES AND ASSUMPTIONS
III.ESTIMATE DOCUMENTATION
A.    PRIMARY METHODOLOGY/MODELS
B.    COST ELEMENT DOCUMENTATION
C.    UNCERTAINTY ASSESSMENT
D.    PROGRAM COST DRIVERS
E.    SENSITIVITY RESULTS
IV.SUMMARY
A.    PRESENTATION FORMATS
B.    COMPARISON TRACK

Exhibit 5-1. DOCUMENTATION STRUCTURE

5.3    EXECUTIVE SUMMARY

    This section of the documentation provides a clear and concise summary of the purpose, background, and results of the O&S estimate. It should be brief (no more than four or five pages), yet provide the reviewer sufficient information about the program and its cost to make an informed decision. The executive summary consists of four subsections:

5.4    PROGRAM OVERVIEW

    The program overview describes the purpose of the estimate, the background of the program, the characteristics of the system, and the operating and support philosophy. Comparisons between the proposed system and a reference system should be drawn. Ground rules and assumptions must be identified to prevent misinterpretation of the estimate. The program overview section consists of the following subsections:

    Much of the information in the program summary can be found in other program documents prepared for DAB or DoD component acquisition reviews. A primary source of much of this information is the Cost Analysis Requirements Document (CARD), prepared by the DoD component responsible for the program. Appendix A lists the major documents prepared for DAB reviews and provides a brief description of each. Supporting documentation should be referenced to provide an audit trail and to ensure that the data used in the estimate are consistent with current program documents.

5.5    ESTIMATE DOCUMENTATION

    The documentation should be tailored to the scope and level of detail of the estimate. Supporting data and other information too complex for inclusion in the body of the estimate should be indexed and presented in appendices. The documentation should provide enough detail for the estimate to be replicated by another analyst. The documentation section consists of the following subsections:

5.6    SUMMARY

    The results of the estimate should be summarized and presented at the end of the documentation. They should be portrayed in a manner that focuses attention on the impact of O&S costs for each element and for the total system. The summary may compare the O&S costs of each alternative with those of one or more reference systems, identify cost drivers, discuss the sensitivity of key variables to change, and identify major differences from the previous estimate. Presentation formats are discussed in Chapter 6. Although not all of the formats may be used in any given assessment, they are provided to assist the analyst in capturing, comparing, analyzing, and documenting O&S costs. As discussed in Chapter 6, certain formats are recommended for use in DAB briefings. Other formats are intended for use in documenting the estimate. The cost estimate provided for each element must track to the cost element documentation discussed in section 5.5. The cost estimate should be summarized in constant dollars of the present budget year and in then-year dollars (if required) for each fiscal year and appropriation category.

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