The following sample of a CAIG(Cost Analysis Improvement Group) Operating and Support Cost Estimate Report covering a hypothetical case has been developed to further assist the cost analyst in the preparation of cost estimating reports submitted to the DSARC and CAIG during the acquisition process of a new weapon system. The sample is intended to show an example of how Operating and Support Costs can be developed for CAIG review with available data bases and one example of an appropriate format for presentation of cost estimates. The existing A-7E data base was used only to illustrate the need to relate an estimate to an existing similar system and to ensure a constant relationship between values and the Cost Element Structure. Each case should address that data which is the most complete and accurate for its purposes. The level of detail depicted in this example may be greater than that which is available or appropriate to a specific case.

The following sample of a CAIG(Cost Analysis Improvement Group) Operating and Support Cost Estimate Report covering a hypothetical case has been developed to further assist the cost analyst in the preparation of cost estimating reports submitted to the DSARC and CAIG during the acquisition process of a new weapon system. The sample is intended to show an example of how Operating and Support Costs can be developed for CAIG review with available data bases and one example of an appropriate format for presentation of cost estimates. The existing A-7E data base was used only to illustrate the need to relate an estimate to an existing similar system and to ensure a constant relationship between values and the Cost Element Structure. Each case should address that data which is the most complete and accurate for its purposes. The level of detail depicted in this example may be greater than that which is available or appropriate to a specific case.

The following sample of a CAIG(Cost Analysis Improvement Group) Operating and Support Cost Estimate Report covering a hypothetical case has been developed to further assist the cost analyst in the preparation of cost estimating reports submitted to the DSARC and CAIG during the acquisition process of a new weapon system. The sample is intended to show an example of how Operating and Support Costs can be developed for CAIG review with available data bases and one example of an appropriate format for presentation of cost estimates. The existing A-7E data base was used only to illustrate the need to relate an estimate to an existing similar system and to ensure a constant relationship between values and the Cost Element Structure. Each case should address that data which is the most complete and accurate for its purposes. The level of detail depicted in this example may be greater than that which is available or appropriate to a specific case.

The following sample of a CAIG(Cost Analysis Improvement Group) Operating and Support Cost Estimate Report covering a hypothetical case has been developed to further assist the cost analyst in the preparation of cost estimating reports submitted to the DSARC and CAIG during the acquisition process of a new weapon system. The sample is intended to show an example of how Operating and Support Costs can be developed for CAIG review with available data bases and one example of an appropriate format for presentation of cost estimates. The existing A-7E data base was used only to illustrate the need to relate an estimate to an existing similar system and to ensure a constant relationship between values and the Cost Element Structure. Each case should address that data which is the most complete and accurate for its purposes. The level of detail depicted in this example may be greater than that which is available or appropriate to a specific case.

Although life cycle analysis is widely used as a management tool, considerable uncertainty still exists about its effectiveness with respect to economic tradeoffs, funding decisions, and resource allocations. This report evaluates some of the most widely used life cycle cost models: AFR l73-10 models (BACE and CACE); the Logistics Support Cost model; the Logistics Composite model; the MOD-METRIC model; AFM 26-3 Manpower Standards; Air Force Logistics Command Depot Maintenance Cost Equations; the DAPCA model; and the PRICE model. The models are rated within a framework incorporating a set of cycle cost elements and a set of cost driving factors. Color-coded illustrations summarize the results. The models are shown to have many shortcomings that limit their usefulness for life cycle analyses in which estimates of absolute, incremental cost are required. Specific areas are identified where driving factor/cost element combinations are not adequately addressed.