Data for Costing Data for Parametric Costing

Mort AnvariDirector, Acquisition Costing

(SAFM-CEA)

2008 Cost Research WorkshopAcquisition Cost and Earned Value Reports:

Data Quality Issue

May 22, 2008

2 May 22, 2008

Data

Key Points

Recognize the DCARC Data Collection Enforcement through Defense Acquisition Executive Summary (DAES) and the Success in Collecting Data for Costing at DCARC, Services, and PMs.

We have Several Data Quality Issues and Potential for Type I (α) and II (β) Errors in our Cost Estimating.

Examples include: STRYKER, FCS, and GFEBS.

Opportunity for Cost Analysis Enterprise Resource Planning (CA-ERP) and Data for Costing Architecture.

Need Data for Costing:Future Technologies; Processes; Performances; Products; Services; Personnel; and Schedule.

3 May 22, 2008

Data

Army DAES Group A CSDR Issues & Actions May 2008

Program Status Issues (as of May 7, 2008) Actions (as of May 21, 2008)

ATIRCM/CMWS G N/A N/A

FMTV G N/A N/A

Patriot PAC-3 Missile Segment

G N/A N/A

JLENS Y1. DASG60-98-C-0001, plan A-04-I-C1-S2 R; Preliminary Design Review cost report submitted May 7, 2008 was rejected.

1. Report will be resubmitted by June 7, 2008.

UH-60M Y

1. W58RGZ-08-C-0003, plans A-06-A-C1-S1,A-06-A-C1 S2 and A-06-A-C1S3 WBS dictionaries, due February 29, 2008, has not been received.

1. WBS dictionary for plan A-06-A-C1-S1 was submitted on May 20, 2008. WBS dictionaries for plans A-06-A-C1 S2 and A-06-A-C1S3 are complete but contractor is having uploading difficulties on the DCARC website and is working with DCARC to resolve.

LUH Y1. W58RGZ-06-C-0194, plan A-07-C-C1; initial report, resubmission 2, was rejected on March 20, 2008.

1. Report was resubmitted on April 21, 2008. DCARC is reviewing.

1. W58RGQ-04-G-0023: Subcontractors not providing CSDR for Lots 3 & 4.

1. Cost reporting was not place on contract for Lots 3&4. PM and Contractor legal offices are reviewing.

2. W58RGQ-04-G-0023; plan A-05-E-C1: Lot 3 completion reports resubmittal, due December 10, 2008 have not been submitted.

2. The Contractor cannot resubmit the reports until the PM has formally reject the initial Lot 3 completion reports. The PM will submit the rejection letter to the Contractor by May 23, 2008.

3. W58RGZ-04-C-0012; plan A-05-E-C2(R1): CWBS dictionary, due January, has not been submitted.

3. The CWBS dictionary cannot be submitted until the New Build CSDR Plan is approved. The Program Office is waiting for Boeing feedback on the Plan before they submit it for final approval.

Patriot MEADS CAP Fire Unit

R1. No CSDR plans have been received for the Surveillance Radar.

1. Army PEO M&S has requested a waiver from CSDR reporting. Decision package is at OSD for consideration.

CH-47F R

4 May 22, 2008

Data

DAES Status Army Programs

11

116

DAES Status as of May 2008.

Green: No or minor open compliance issues.

Yellow : Unresolved minor open compliance issues. . Red: Any major issue. CSDR requirements not included on contracts. Unaddressed previously identified compliance issues.

5 May 22, 2008

Data

Available Data for Costing

Cost and Software Data Reports (CSDRs)

Cost Performance Report (CPR)

Automated Cost Databases (ACDB) from CSDRs and CPRs

Contractor Logistic Support (CLS) Database

Cost Analysis Requirements Description (CARD) Database

Army Operating and Support Management Information System (OSMIS)

Army Capability Knowledge Base (CKB)

Additional data sources include: Army Cost Positions (ACP) Database ACE-IT Sessions; SAR; DAES; WSR; APB; P/R-Forms; and Contract Summaries.

6 May 22, 2008

Data

Data for Cost Estimating

Cost Models Historical Data: Cost and (Physical, Technical, Performance, Capability, Schedule).

Subject System Data: Physical, Technical, Performance, Capability, Schedule.

Information KnowledgeData

Performance

Cost Schedule

Estimates are only as good as the data that they are based on.

7 May 22, 2008

Data

Data Issues

Current Data Reporting and Usage Issues (CSDR CCDR, SRDR, and CPR).

Examples include: Stryker, FCS, and GFEBS (lack of clean data / no data). Family or System of Systems (Commonality Issue) LSI, JV, Prime, Sub (Contracting Issue) CPIF, FFP,. . Reporting Requirements (Contract Type Issue) Manufacturing, Services, SW, and ERP (Activity Type Issue) Mod, ECP, and Incremental Contracts (Completeness Issue) Competition and Business Base Issues (Quantity issue) Physical, Technical, TRL, Performance (Technology Issue)

KPP and Capability Data Issue

Allocation Issue: Mapping to Standard ReportsLabor – Material

Direct – Indirect

Recurring – Non-Recurring

8 May 22, 2008

Data

Data Quality Challenges

Lack of data. Physical, technical, performance, capability. S/W ERP FFP Contract. ACAT II and below programs.

Policies and procedures. DoDI 5000-2 dated May 2003.

Requires SRDR but not CSDR for some programs. Vague in some areas; CSDR “not required for procurement of commercial systems, or for non-commercial systems bought under competitively awarded, firm fixed-price contracts, as long as competitive conditions continue to exist”.

Army regulations do not require cost reporting.

Data collection process. Existing data is not readily available to the Cost Analysts; sometimes they are not even aware that data exists. (Data in Jail) Contractors required to map CSDR reports IAW DoD MIL-HDBK-881.

9 May 22, 2008

Data

Data Collection Process

Contractor

1

Contractor

1

Contractor 2

Contractor 2

Contractor3

Contractor3

Contractor Accounting Systems:

Contractor Accounting Systems:

S1

S3

S4

S2S5S6

S7

S8

S10

S9

Contractor Data / Reports:

Contractor Data / Reports:

R1

R3

R4

R2

R5

R6

R7R8

R10

R9

R11

R12

R13

R14

R15

R16

R17

R18

Labor vs. MaterialDirect vs. IndirectRec. vs. Non Rec.

Unique vs. CommonContractor allocation

Contracting

Labor vs. MaterialDirect vs. IndirectRec. vs. Non Rec.

Unique vs. CommonContractor allocation

ContractingG1

G2

G3

Co

ntr

ac

tor

All

oc

ati

on

Data Quality?

Process affects data quality. Increases probability for data errors. Results in mapping / allocation inconsistencies.

Process vs. Quality.

COST AND SOFTWARE DATA REPORTING PLAN Form Approved OMB No. 0704-0188

1a. PROGRAM 2a. WEAPON SYSTEM TYPE 3. SUBMISSION TYPE 4. DATE AS OF (MM/DD/YY) 5. REPORT DATE (MM/DD/YY)

X INITIAL SUBMISSION

1b. MILESTONE A B X C: LRIP C: PROD CHANGE

6. POINT OF CONTACT (POC) INFORMATION 7. W BS 8. PREPARING ORGANIZATIONa. POC AND ADDRESS (Include ZIP Code) X PROGRAM

CONTRACT 9. REVIEW AND REFERENCE NUMBER

12. 13.CONTRACTOR CONTRACT d. DD 2630

a. PROGRAM b. CONTRACT (DUNS Code) NUMBER REQUIRED

DD FORM 2794, Oct 2003 PREVIOUS EDITION IS OBSOLETE

6d. E-MAIL ADDRESS:

REQUIREDWBS

REPORTING ELEMENTS

14. REPORT FREQUENCYa. DD 1921 b. DD 1921-1 (Part 1) c. DD 1921-1 (Part 2)

Public reporting burden for this collection of information is estimated to average 15 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden to Department of Defense, Washington Headquarters Service, Directorate for Information Operations and Reports (0704-0188), 1215 Jefferson Davis Highway, Suite 1204 Arlington, VA 22202-4302. Respondents should be aware that notwithstanding any other provisions of law, no person shall be subject to any penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. PLEASE DO NOT RETURN YOUR FORM TO THE ABOVE ADDRESS.

REQUIRED

6b. TELEPHONE NUMBER

6c. FAX NUMBER

10.WBS ELEMENT CODE

11.

REQUIRED

CSDR

10 May 22, 2008

Data

Data Collection Process

Contractor’s map data for CSDR reports to IAW DoD MIL-HDBK-881. CSDR data is then mapped into Army ACDB IAW Army Cost Element Structure (CES).

Contractor Data Input

Form

ContractorDatabase

Current Data Collection Process.

DCARCDatabase

ACDBDatabase

Contractor Allocation

Army CES Allocation

…

HDBK Element3

HDBK Element2

HDBK Element1

DCARC / DoD MIL-HDBK-

881

…

Sys3

Sys2

Sys1

Contractor Accounting System

ACDB / Army CES

CES Element1

CES Element2

…

CES Element3

COST AND SOFTWARE DATA REPORTING PLAN Form Approved OMB No. 0704-0188

1a. PROGRAM 2a. WEAPON SYSTEM TYPE 3. SUBMISSION TYPE 4. DATE AS OF (MM/DD/YY) 5. REPORT DATE (MM/DD/YY)

X INITIAL SUBMISSION

1b. MILESTONE A B X C: LRIP C: PROD CHANGE

6. POINT OF CONTACT (POC) INFORMATION 7. WBS 8. PREPARING ORGANIZATIONa. POC AND ADDRESS (Include ZIP Code) X PROGRAM

CONTRACT 9. REVIEW AND REFERENCE NUMBER

12. 13.CONTRACTOR CONTRACT d. DD 2630

a. PROGRAM b. CONTRACT (DUNS Code) NUMBER REQUIRED

DD FORM 2794, Oct 2003 PREVIOUS EDITION IS OBSOLETE

6d. E-MAIL ADDRESS:

REQUIREDWBS

REPORTING ELEMENTS

14. REPORT FREQUENCYa. DD 1921 b. DD 1921-1 (Part 1) c. DD 1921-1 (Part 2)

Public reporting burden for this collection of information is estimated to average 15 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden to Department of Defense, Washington Headquarters Service, Directorate for Information Operations and Reports (0704-0188), 1215 Jefferson Davis Highway, Suite 1204 Arlington, VA 22202-4302. Respondents should be aware that notwithstanding any other provisions of law, no person shall be subject to any penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. PLEASE DO NOT RETURN YOUR FORM TO THE ABOVE ADDRESS.

REQUIRED

6b. TELEPHONE NUMBER

6c. FAX NUMBER

10.WBS ELEMENT CODE

11.

REQUIRED

CSDR

11 May 22, 2008

Data

Automated Cost Database (ACDB)

Army Automated Cost Database (ACDB)

Cost Methodology Development

ACDB.

DCARC Database Collect Data of Historical

Programs

Normalize / Standardize Data

Input Data into ACDB Database

Structure

Query ACDB for Cost and

Technical Data

Relate Technical and Program

Parameters to Cost

Perform Regression

Analysis

Develop Cost Models

as appropriate

Army C

ES

Allocatio

n

Contractor data mapped twice.

12 May 22, 2008

Data

STRYKER

Engineering Support Vehicle (ESV)

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

Hull /

Structu

re

Suspe

nsion

/ Ste

ering

Power

Pac

kage

/ Driv

e Tra

in

Auxilia

ry A

utom

otive

Turre

t Ass

embly

Fire C

ontro

l

Armam

ent

Body /

Cab

Autom

atic

Load

ing

Autom

atic/

Remot

e Pilo

ting

Nuclea

r, Biol

ogica

l, Che

mica

l

Specia

l Equ

ipmen

t

Naviga

tion

Comm

unica

tions

Inte

grat

ion, A

ssm

, Tes

t

DO2-ESV_(22)

DO10-ESV_(10)

DO19-ESV_(10)

DO21-ESV_(10)

Unit cost should not increase over time; suggests no learning.

FOUO

FOUO

13 May 22, 2008

Data

STRYKER

FOUO

FOUO

Hull/Structure

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

DO2-IC

V_(16

6)

DO2 M

C_(51

)

DO2-ATGM

_(52

)

DO2-RV_(

66)

DO2-FSV_(

27)

DO2-ESV_(

22)

DO2-CV_(

41)

DO2-M

EV_(27

)

DO3-M

GS_(8)

DO5-NBCRV_(

4)

DO10-IC

V_(12

0)

DO10-M

C_(36

)

DO10-A

TGM_(

36)

DO10-R

V_(57

)

DO10-F

SV_(12

)

DO10-E

SV_(10

)

DO10-C

V_(14

)

DO10-M

EV_(15

)

DO19-IC

V_(13

4)

DO19-M

C_(40

)

DO19-R

V_(51

)

DO19-F

SV_(14

)

DO19-E

SV_(10

)

DO19-M

EV_(18

)

DO21-IC

V_(13

1)

DO21-R

V_(11

6)

DO21-F

SV_(27

)

DO21-E

SV_(10

)

DO21-C

V_(25

)

DO21-M

EV_(19

)

Hull / Structure thought to be common but data does not support commonality. Percentage of common parts for all HW WBS elements range from 11- 39%.

14 May 22, 2008

Data

STRYKER

FOUO

FOUO

Large variation in the unit costs for delivery orders 2, 10, 19, and 21.

Full Vehicle

Lot Number

Uni

t C

ost

by V

aria

nt

DO #2 DO #10 DO #19 DO #21

Hull / Structure

Lot Number

Uni

t C

ost

by V

aria

nt

DO #2 DO #10 DO #19 DO #21

Suspension / Steering

Lot Number

Un

it C

ost

by

Va

ria

nt

DO #2 DO #10 DO #19 DO #21

Power Package / Drive Train

Lot Number

Un

it C

ost

by

Va

ria

nt

DO #2 DO #10 DO #19 DO #21

15 May 22, 2008

Data

STRYKER

TACOM review of Stryker CSDR. Large variations in platform material costs across delivery orders.

Data suggested no learning.

Many HW elements %'s differ greatly between RDTE and Procurement.; Ex: ICV; RDTE Hull/Structure ~9% of total HW cost; procurement ~37%.

Some cost elements were not in the category an analyst would expect; Ex: Tech pubs; operator manuals DO#17 and tech manuals DO#12.

Contractor’s accounting system collects data by delivery order. Contractor MI-HDBK-881reporting level did not provide insight into unique vs. common. (11-39% common)

To conform to MI-HDBK-881 contractor allocated labor and some material costs.

16 May 22, 2008

Data

STRYKER

CSDRs provide no insight into common versus unique. Contractor collects data by delivery order and allocates labor and some material costs.

Shows commonality for variants.

Commonality across all Stryker variants.

Notional Resource Distribution Table (RDT).

17 May 22, 2008

Data

Future Combat Systems – FCS

Common development may be included in LSI data. Examples include: SE/PM; data; etc.

Common versus unique.

Subcontractors have functional responsibilities across multiple platforms.

Prime Contractors (Lead System Integrators (LSI)

Typical Program

FCS

FCS Family of Systems (Systems of Systems Approach).

Boeing & SAIC

Prime Contractor

Sub-Contractors

Sub-Contractors

Sub Sub-Contractors

Sub Sub-Contractors

18 May 22, 2008

DataLead System Integrated

(LSI)

MGVs

MULE UGV

IntegratedComputers

Ground Sensor

UAV UGS

Aerial Sensor

ANS

FCS

Tier I systems with functional responsibilities for MULE UGV: LSI, Integrated Computers, Ground Sensor, and ANS.

Mule UGV Functional Responsibility.

Subsystems

SubsystemsSubsystemsSubsystems

Subsystems SubsystemsSubsystems

Tier I

Tier II

19 May 22, 2008

Data

FCS Software SLOC

FCS includes 14 Integrated Weapon Systems and the Network

• These Systems & Network could be a Separate Major Software Development Effort/Program

Current FCS SLOC

97.6 M

MicrosoftWindows Vista: 50

System of Systems Software Total kSLOC

C4ISR 41,672.2

System of Systems Common Operating Environment (SOSCOE)

29,866.0

NSIV 1,070.7

IS&T 7,889.7

MGV 3,649.0

Logistics 1,337.3

Training 2,201.1

UAV 658.2

UGV 9,245.8

Total FCS 97,590.1

SLOC on the Rise. Requirements too?

20 May 22, 2008

Data

Cost Data Flow

Need for Data Warehousing. Repository of electronically stored data.

Several databases typically supply data to the warehouse.

Improved ease of data retrieval and data quality.

Contractor Cost Accounting Systems

Government InformationalSystems / Databases

Contractor

Sys1

Contractor

Sys2

Contractor

Sys3

Contractor

Sys4

ACDB OSMIS CLS

Current Information Access Flow.

Cost Analysts

21 May 22, 2008

Data

Data Warehousing

Raw Data loaded directly from contractor accounting system into data warehouse.

Metadata: ‘Data about Data’.

Data visualization / data warehousing / intelligent data mining.

Global definitions that can be referenced by many different databases.

InformationInformationDelivery SystemDelivery System

Government InformationalSystems / Databases

DataWarehouse

ExternalData

ExternalUsers

Proposed Information Access Flow.

Contractor Cost Accounting Systems

Data Marts

22 May 22, 2008

Data

Cost Analysis ERP

Potential for Enterprise Resource Planning (ERP) of Cost Analysis Data and Models across the DoD.

Enable data and information sharing. Allow automation and integration of business processes.

Cost Analysts need to be more involved in the process.

Data for Costing – Vision: Collect raw data with more flexibility and focus on metadata development – XML. Data warehousing of raw and current data. Acquiring data mining and search tools to assist data analysis.

Why Data ERP for Costing? Check out http://www.anvari.net/E_Proc_Model.htm