Back to Basics: Cost Data Collection
Smoker, R.
MCR LLC

This paper will address the issues and problems associated with the collection of cost data for hardware and software systems built by the major DOD prime contractors. Specifically, it will address the need for high level officials in both the military and the private sector to communicate the need for good data to support parametric cost models, the non-disclosure agreement issues, the process of establishing a common work breakdown structure, the art of formatting and normalizing each data point so comparison of data across like type systems (satellites, aircraft, radars, sensors, etc.) may be made with some degree of acceptability. The need to collect mass property data for each data point so that analysts have weight, power, or end of life characteristics as potential predictors of the costs. There is a need to integrate schedules into the cost data collection process so that time to complete effort may become a cost driver along with the mass properties.

This paper defines the issues, describes the problems and calls for increased cooperation between military program managers, senior DOD leadership, and private sector senior leaders to bridge the gap so that better cost analysis and cost engineering may be conducted in the design and development of new systems. The ultimate benefit of increased cooperation should be a better and earlier understanding of new system costs, thereby reducing the number of systems that exhibit significant overruns.