1.1    OPERATIONS

    1.2    MAINTENANCE







    2.5    OTHER


    3.1    MAINTENANCE


    3.3    OTHER



    4.2     OTHER




    5.3    OTHER








    6.7    OTHER





    The cost element structure for combat vehicles encompasses those defense materiel programs that employ specialized vehicle systems with the capability to navigate over various types of terrain. These systems include combat vehicles serving as armored weapons platforms, reconnaissance vehicles, or amphibians.


    The mission personnel element includes the cost of pay and allowances for officer, enlisted, and civilian personnel required to operate, maintain, and support a discrete combat vehicle system. This includes the personnel necessary to meet combat readiness, unit training, and administrative requirements. For personnel who operate, maintain, or support more than one type of defense system, personnel requirements will be allocated on a relative workload basis. Personnel costs will be based on manning levels and skill categories.

Note: Pay and allowances for officer and enlisted personnel should be based on the standard composite rate, which includes the following elements: basic pay, retired pay accrual, incentive pay, special pay, basic allowance for quarters, variable housing allowance, basic allowance for subsistence, hazardous duty pay, reenlistment bonuses, clothing allowances, overseas station allowances, uniform allowances, family separation allowances, separation payments, and social security contributions.
Pay and allowances for civilian personnel should be based on the standard composite rate, which includes the following elements: basic pay, additional variable payments for overtime, holiday pay, night differentials, cost-of-living allowances, and the government contribution to employee benefits, insurance, retirement, and the Federal Insurance Contribution Act.

1.1 OPERATIONS. The pay and allowances of the crew or full complement of personnel required to operate a combat vehicle system. Combat vehicle crews will normally include enlisted personnel or a combination of both officer and enlisted personnel.

1.2 MAINTENANCE. The pay and allowances of military and civilian personnel who perform maintenance on and provide ordnance support to assigned combat vehicles, associated support equipment, and unit-level training devices. Depending on the maintenance concept and organizational structure, this element may include costs from some or all of the following categories:

1.3 OTHER MISSION PERSONNEL. The pay and allowances of military and civilian personnel who perform unit staff, security, and other mission support activities. The number and type of personnel in this category will vary depending on the requirements of the particular system. The costs should address personnel in units (battalions, companies, or attached platoons) that exist only because of the system being assessed. Some examples are:


    Unit-level consumption includes the cost of fuel and energy resources; operations, maintenance, and support materials consumed at the unit level; stock fund reimbursements for depot-level reparables; operational munitions expended in training; transportation in support of deployed unit training; temporary additional duty/temporary duty (TAD/TDY) pay; and other unit-level consumption costs, such as purchased services for equipment lease and service contracts.

2.1 POL/ENERGY CONSUMPTION. Represents the unit-level cost of petroleum, oil, and lubricants (POL) and of fuel additives. May also include field-generated electricity and commercial electricity necessary to support the operation of a combat vehicle system.

2.2 CONSUMABLE MATERIAL/REPAIR PARTS. The costs of material consumed in the operation, maintenance, and support of a combat vehicle and associated support equipment. Depending on the maintenance concept or organizational structure, consumption at the intermediate level should be reported either in this element or in element 3.0, Intermediate Maintenance (External to Unit). Costs need not be identified at the level of detail shown below; the descriptions are intended merely to illustrate the various types of materials encompassed in this element.

2.3 DEPOT-LEVEL REPARABLES. The unit-level cost of reimbursing the stock fund for purchases of depot-level reparable (DLR) spares (also referred to as exchangeables) used to replace initial stocks. DLRs may include repairable individual parts, assemblies, or subassemblies that are required on a recurring basis for the repair of major end items of equipment.

Note: Defense Management Report Decisions (DMRDs) 901 and 904 of November 1989 proposed the establishment of a Defense Business Operations Fund (DBOF) under which DLRs would be consolidated under stock fund management. The cost of DLRs, previously a free issue to the consumer, must now be funded and budgeted by the resource user. A surcharge is added to the price of DBOF items to recover the cost of stock fund operations.

2.4 TRAINING MUNITIONS/EXPENDABLE STORES. The cost of munitions consumed in unit-level training. Includes the cost of live and inert ammunition, rockets, and missiles expended in noncombat operations (such as firepower demonstrations) and training exercises.

2.5 OTHER. Include in this element any unit-level consumption costs not otherwise accounted for. The costs identified must be related to the system whose operating and support requirements are being assessed. Examples might include:


    Intermediate maintenance performed external to the unit includes the cost of labor and materials and other costs expended by designated activities/units (third and fourth echelon) in support of a combat vehicle system and associated support equipment. Intermediate maintenance activities include calibration, repair, and replacement of parts, components, or assemblies, and technical assistance.

3.1 MAINTENANCE. The pay and allowances of military and civilian personnel who perform intermediate maintenance on combat vehicles, associated support equipment, and unit-level training devices.

3.2 CONSUMABLE MATERIAL/REPAIR PARTS. The costs of repair parts, assemblies, subassemblies, and material consumed in the maintenance and repair of combat vehicles, associated support equipment, and unit-level training devices.

3.3 OTHER. Include in this element any intermediate maintenance costs not otherwise accounted for. For example, this could include the cost of transporting subsystems or major end items to a base or depot facility.


    Depot maintenance includes the cost of labor, material, and overhead incurred in performing major overhauls and maintenance on a combat vehicle, its components, and associated support equipment at centralized repair depots, contractor repair facilities, or on site by depot teams. Some depot maintenance actions occur at intervals ranging from several months to several years. As a result, the most useful method of portraying these costs is on an annual basis (e.g., cost per combat vehicle per year) or an operating-hour basis.

Note: The cost of depot-level reparables (DLRs) or exchangeables acquired through DBOF should be reported in element 2.0, Unit-Level Consumption.

4.1 OVERHAUL/REWORK. The labor, material, and overhead cost for overhaul/rework of combat vehicles returned to a centralized depot facility. Includes programmed depot maintenance, analytic condition inspections, and unscheduled depot maintenance. Costs of major combat vehicle subsystems that have different overhaul cycles (i.e., hull/frame, power package/drive train, fire control system, armaments, etc.) should be reported separately within this element.

4.2 OTHER. Include in this element any significant depot maintenance activities not otherwise accounted for. Examples might include component repair costs for reparables not managed by the DBOF, second-destination transportation costs for weapons systems or subsystems requiring major overhaul or rework, or contracted unit-level support.

Note: Not all reparable items are acquired through DBOF. Centrally funded accounts may continue to finance items such as classified program DLRs, conventional and nuclear munitions items, and certain cryptologic electronics and telecommunication items.


    Contractor support includes the cost of contractor labor, materials, and overhead incurred in providing all or part of the logistics support required by a combat vehicle, subsystem, or associated support equipment. Contract maintenance is performed by commercial organizations using contractor personnel, material, equipment, and facilities or government-furnished material, equipment, and facilities. Contractor support may be dedicated to one or multiple levels of maintenance and may take the form of interim contractor support (ICS) if the services are provided on a temporary basis or contractor logistics support (CLS) if the support extends over the operational life of a system. Other contractor support may be purchased for engineering and technical services.

5.1 INTERIM CONTRACTOR SUPPORT. Interim contractor support (ICS) includes the burdened cost of contract labor, material, and assets used in providing temporary logistics support to a combat vehicle, subsystem, or associated support equipment. The purpose of ICS is to provide total or partial logistics support until a government maintenance capability is developed.

5.2 CONTRACTOR LOGISTICS SUPPORT. Contractor logistics support (CLS) includes the burdened cost of contract labor, material, and assets used in providing support to a combat vehicle, subsystem, or associated support equipment. CLS funding covers depot maintenance and, as negotiated with the operating command, necessary organizational and intermediate maintenance activities. If CLS is selected as the primary means of support, all functional areas included in the CLS cost should be identified in the cost element documentation.

5.3 OTHER. Include in this element any contractor support costs not otherwise accounted for. For example, if significant, the burdened cost of contract labor for contractor engineering and technical services should be separately identified and included here.

Note: Contractor support during the pre-operational phase of a system is typically funded as a system development or investment cost. However, post-operational contractor support is an O&S cost and should be addressed in this element.
After the ICS period, the government assumes responsibility for supporting a weapon system. However, contractor support may still be employed in specific functional areas, such as sustaining engineering, software maintenance, simulator operations, and selected depot maintenance functions. Applicable contractor costs should be reported against these elements in the CES. To avoid double counting, the contractor support element should be annotated to identify any contractor costs that are reported in other elements.


    Sustaining support includes the cost of replacement support equipment, modification kits, sustaining engineering, software maintenance support, and simulator operations provided for a combat vehicle system. War readiness materiel is specifically excluded.

6.1 SUPPORT EQUIPMENT REPLACEMENT. The cost of replacing equipment that is needed to operate or support a combat vehicle system, subsystems, training systems, and other support equipment. The support equipment being replaced (e.g., tools and test sets) may be unique to the system or it may be common to a number of systems, in which case the costs must be allocated among the respective systems.

Note: This element addresses replacement equipment only. The costs of initial support equipment are specifically excluded.

6.2 MODIFICATION KIT PROCUREMENT/INSTALLATION. The cost of procuring and installing modification kits and modification kit initial spares (after production and deployment) required for a combat vehicle and associated support and training equipment. Includes only those modification kits needed to achieve acceptable safety levels, overcome mission capability deficiencies, improve reliability, or reduce maintenance costs. Excludes modifications undertaken to provide additional operational capability not called for in the original design or performance specifications.

6.3 OTHER RECURRING INVESTMENT. Include in this element the cost of any recurring investments not otherwise accounted for.

6.4 SUSTAINING ENGINEERING SUPPORT. The labor, material, and overhead costs incurred in providing continued systems engineering and program management oversight to determine the integrity of a system, to maintain operational reliability, to approve design changes, and to ensure system conformance with established specifications and standards. Costs reported in this category may include (but are not limited to) government and/or contract engineering services, technical advice, and training for component or system installation, operation, maintenance, and support.

6.5 SOFTWARE MAINTENANCE SUPPORT. The labor, material, and overhead costs incurred after deployment by depot-level maintenance activities, government software centers, laboratories, or contractors for supporting the update, maintenance and modification, integration, and configuration management of software. Includes operational, maintenance, and diagnostic software programs for the primary system, support equipment, and training equipment. The respective costs of operating and maintaining the associated computer and peripheral equipment in the software maintenance activity should also be included. Not included are the costs of major redesigns, new development of large interfacing software, and modifications that change functionality.

6.6 SIMULATOR OPERATIONS. The costs incurred to provide, operate, and maintain on-site or centralized simulator training devices for a combat vehicle system, subsystem, or related equipment. This may include the labor, material, and overhead costs of simulator operations by military and/or civilian personnel, or by private contractors.

Note: On-site simulator operations and maintenance that are an integral part of unit manning and unit consumption should be reported as unit-level mission costs for the system in question. However, the costs of all contract-funded simulator operations and all centralized government simulator operations should be reported in this element.

6.7 OTHER. Include in this element any sustaining support costs not otherwise accounted for. Examples might include the costs of follow-on operational tests and evaluation, such as range costs, test support, data reduction, and test reporting.


    Indirect support includes the costs of personnel support for specialty training, permanent changes of station, and medical care. Indirect support also includes the costs of relevant host installation services, such as base operating support and real property maintenance.

7.1 PERSONNEL SUPPORT. Personnel support includes the cost of system-specific and related specialty training for military personnel who are replacing individuals lost through attrition. Also included in this element are permanent change of station costs and the cost of medical care. Each of these elements should be addressed separately. Descriptions are provided below:

Note: The cost of initial course development and training of Service instructors at contractor facilities is normally categorized as a system investment cost. However, the follow-on training costs of military and civilian personnel attending factory schools, as well as the cost of attending Service-conducted school-house specialty training, is an O&S cost and should be reported in this element.
Normally, the costs of acquisition for recruiting, accession, and basic military training will not be included. However, if a significant change in Service recruiting and training objectives is required in order to support the system being assessed, then these costs should be addressed.

7.2 INSTALLATION SUPPORT. Consists of personnel normally assigned to the host installation who are required for the unit to perform its mission in peacetime. Include only those personnel and costs that are directly affected by a change in the number of weapon systems and associated mission personnel. Functions performed by installation support personnel include:

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