- 0 - Federal Aviation Administration FAA Cost Estimating Competency Dictionary

- 1 - Federal Aviation Administration Cost Estimating Certification Framework Critical Competencies are required at the time of entry and can be enhanced on the job. Important Competencies are preferred at hiring but can be developed on the job. FAA Wide competencies are those general and leadership competencies that have been defined by the FAA for all employees.

- 2 - Federal Aviation Administration PROFICENCY LEVEL DESCRIPTIONS PROFICIENCY LEVEL DESCRIPTION 3Advanced –Demonstrates wide knowledge of advanced concepts and processes, and applies them within and across disciplines –Possesses extensive knowledge and training in this area and serves as a technical advisor –Serves as an known authority, guide, and/or key resource –Seeks guidance as needed; serves as a role model and is capable of leading or teaching others in this area –Able to apply this competency in various situations (e.g., abstract situations) without guidance 2Intermediate –Demonstrates this competency in routine situations and non-routine situations and can contribute or new ideas in applying this competency –Demonstrates mastery of basic concepts and processes, and working proficiency applying them –Able to fully perform work that requires straightforward application of this competency –Requires periodic guidance from high-level management/supervisory resources 1Basic –Performs tasks applying this competency, with guidance and supervision –Able to perform developmental work activities requiring this competency; applies the competency to concrete, developmental tasks –Demonstrates knowledge of basic concepts and processes, and limited working proficiency applying them

- 3 - Federal Aviation Administration DATA COLLECTION AND ANALYSIS DEFINITION: Ability to identify, systematically collect, and organize information for use by self or others in the organization. Ability to apply quantitative and qualitative data analysis tools, techniques, and technologies to analyze various types of data. Skill in combining and formatting disparate pieces of data into an analyzable format. Ability to make logical interpretations, conclusions and inferences from the data. Skill in identifying trends and synthesizing data for reports. Ability to present/convey data analysis findings, consistent with the target audience. PROFICIENCY LEVEL BEHAVIORAL INDICATORS 3Advanced  Evaluates the effectiveness of data sources and analysis tools to determine whether alternative sources, tools, techniques, or technologies should be used or developed  Develops new data collection methods and identifies new sources to meet emerging needs  Educates and mentors others on data analysis tools, techniques, and methodologies and guides the formulation of logical data interpretation  Presents and accurately conveys complex data analysis findings, implications, and limitations to stakeholder audiences with varying degrees of familiarity with topic/subject 2Intermediate  Interfaces with other functional areas concerning data collection requirements; collects and uses information from multiple sources to accomplish work assignments  Applies various innovative tools and techniques to satisfy strategic data collection requirements; uses systematic procedures to collect and maintain information  Identifies trends and synthesizes the information to create reports with recommendations  Explains analytical process used to analyze data and draw conclusions, and articulates any potential limitations  Reviews data analysis performed by others and provides constructive feedback  Communicates data analysis findings to multiple stakeholder audiences that are familiar with the topic/subject 1Basic  Collects information from easily accessed sources; uses information from common sources to accomplish work assignments  Seeks guidance when developing data collection plans  Draws logical conclusions and identifies important facts in the collection of data; distinguishes information that is not relevant or pertinent  Uses quantitative and qualitative data analysis tools to interpret data findings in the development of reports

- 4 - Federal Aviation Administration FINANCIAL ANALYSIS DEFINITION: Conducts financial analysis with knowledge of economic policies, principles and practices; statistics; and mathematical principles. Collects and analyzes economic and statistical data using econometric and sampling techniques. PROFICIENCY LEVEL BEHAVIORAL INDICATORS 3Advanced  Serves as technical expert on theories, principles, and methods of economics; formulates recommendations, policies, or plans to solve economic problems or to interpret markets  Develops economic guidelines and standards and prepares points of view used in forecasting trends; conveys limits behind various data sources and the impact on forecasts  Applies knowledge of statistical modeling principles, techniques and terminology to analyze data and provide statistical results  Evaluates statistical methods, procedures and sources of information used to obtain data to ensure validity, applicability, efficiency, and accuracy  Applies complex mathematical concepts (e.g., calculus, linear algebra, set theory, advanced algebra); performs complex computations (e.g., algebra, trigonometry, statistics).  Identifies and explains trends and other quantitative data characteristics, using advanced mathematical reasoning  Evaluates and develops models for life cycle cost estimates where no precedent exists 2Intermediate  Assesses the impact of inflation and discounting on the cost estimate  Selects and applies the most effective forecasting methodologies; analyzes and reports data to explain economic phenomena and forecast trends  Advises others on the appropriate use of statistical techniques (e.g., regression analysis, sensitivity analysis) and software (e.g., SPSS, Excel, Analytica, Crystal Ball) to perform cost estimating activities  Determines the types/sizes of sample groups used to support work assignments (e.g., cost estimate development)  Solves routine mathematical problems (e.g., net present value, internal rate of return, compound annual growth rate) and provides guidance to others  Evaluates and develops models for life cycle cost estimates for more complex issues and applications 1Basic  Applies principles and concepts of macro and microeconomics (e.g., supply and demand, equilibrium price, inflation, discounting, opportunity cost) to develop cost estimate; recognizes impact of macro and microeconomics during cost estimate development  Conducts cost analyses to accurately estimate project costs; interprets estimates produced by others  Communicates statistical concepts and findings to various audiences  Uses a broad range of statistical and financial tools/software (e.g., SPSS, Excel, Analytica, Crystal Ball), and techniques (e.g., regression analysis, sensitivity analysis) to perform cost estimating activities  Independently applies simple mathematical techniques to solve practical problems  Evaluates and develops models for life cycle cost estimates

- 5 - Federal Aviation Administration PROGRAM AND PORTFOLIO INVESTMENT ANALYSIS DEFINITION: Knowledge of program management principles, practices, and approaches. Ability to perform business case and investment case analysis on an interdependent set of projects. Ability to manage programs and portfolios through the application of appropriate management control processes (e.g., strategic planning, scheduling, continuous improvement, financial management, resource allocation, performance measurement, and reporting). PROFICIENCY LEVEL BEHAVIORAL INDICATORS 3Advanced  Develops a portfolio view, sets program vision, develops program objectives and goals that reflect understanding and assessment of operational, organizational, and political risks  Sets standards for program or portfolio compliance and governance  Influences the development of program or portfolio performance measurement techniques to ensure accountability  Oversees large scale programs or portfolios that significantly impact multiple stakeholders  Develops and advises others on comprehensive risk assessment plans to mitigate identified risks (for programs or portfolios with high complexity and/or high risk) 2Intermediate  Implements continuous improvement strategies to help ensure program and portfolio quality and productivity  Manages multiple projects in a specific program or portfolio area  Develops comprehensive risk assessment plans to mitigate identified risks (for programs or portfolios with moderate complexity and/or moderate risk)  Identifies gaps in program and portfolio resources and develops strategies to address resource gaps and issues  Employs performance measurement techniques (as defined by the FAA) to measure progress of the program or portfolio  Identifies and recommends various program or portfolio reporting mechanisms used to communicate with stakeholders 1 Basic  Executes tasks and activities that ensure effective allocation and utilization of program or portfolio resources  Assists with scheduling responsibilities to help ensure timeliness of program or portfolio goals  Identifies risks for programs or portfolios with low complexity and/or low risk  Participates in performance measures identification  Uses a variety of reporting mechanisms to communicate with stakeholders

- 6 - Federal Aviation Administration ACQUISTION AND CONTRACTS DEFINITION: Knowledge of the investment analysis, solicitation, negotiation, development, selection, and administration of contracts/services in compliance with: public law, executive orders, FAA AMS, and other applicable regulations, policies, and requirements. Understanding of the FAA Acquisition Management System (AMS). Understanding of the contracting process. PROFICIENCY LEVEL BEHAVIORAL INDICATORS 3Advanced  Develops and oversees management processes associated with investment analysis  Provides recommendations for the acquisition strategy and exit criteria for each acquisition phase  Applies FAA acquisition policies to meet user/mission requirements and management actions, when engaged in the acquisition of services  Reviews the implementation of an acquisition strategy with an on-going risk/opportunity management process 2Intermediate  Implements and ensures adherence to the management processes associated with investment analysis  Supports the preparation and implementation of an acquisition strategy  Evaluates an acquisition strategy that identifies areas of risk; incorporates risk mitigation strategies  Clarifies source selection criteria, including risk analysis methods 1Basic  Applies understanding of FAA management processes (associated with acquisition and acquisition planning) to accomplish work assignments  Reviews program specifications and Statements Of Work (SOW) and applies the knowledge to cost estimating process activities  Identifies advantages/disadvantages of competing offers  Participates in developing high-level summaries of competing offers

- 7 - Federal Aviation Administration SYSTEM EVALUATION DEFINITION: Understanding of the linkages and interactions of the NAS systems. Considers inputs and outputs of a system, as well as the dependencies and relationships with other systems and equipment. Identifies the potential impact to other systems during planning, development, acquisition, installation, implementation and transition and prepares accordingly. Uses understanding of requirements, system design, coding/configuration, system integration, and systems testing to perform systematic evaluations. PROFICIENCY LEVEL BEHAVIORAL INDICATORS 3Advanced  Applies knowledge of the purpose and function of system components in the context of the NAS across multiple projects and work processes; maintains up-to-date knowledge of technology and systems (e.g., NextGen)  Anticipates, identifies, and takes action to resolve system integration issues and concerns during system design  Assesses or evaluates Concept of Operations to ensure feasibility, assess risk, and evaluate performance  Advises and collaborates with project managers and stakeholders on system requirements, architecture, dependencies, system integration, and risks  Applies knowledge of various FAA enterprise architectures to evaluate project initiation and sequencing 2Intermediate  Applies knowledge of the purpose and function of system components to projects or work activities, in the context of NAS  Identifies system integration issues and concerns (e.g., interfacing systems/equipment/tools) during program evaluation; provides input during issue resolution  Anticipates and evaluates system risks, communicates possible system consequences, and suggests risk mitigation activities 1Basic  Describes the purpose and function of system components related to a project and the impact on interrelated systems (e.g., RADAR, NAVAIDS, Air Traffic Control)  Describes how changes to a system may affect various FAA enterprise architectures  Incorporates system risk assessment from peers and/or supervisor into the system evaluation

- 8 - Federal Aviation Administration FINANCIAL MANAGEMENT DEFINITION: Knowledge of the federal budget process, including budget formulation, appropriation, principles and standards outlined by the GAO and the Office of Management and Budget (OMB). Knowledge of planning, budgeting, tracking, analysis, controlling and operational compliance and reporting of financial data. Familiarity with common financial management tools and systems including SPIRE, Resource Planning Document (RPD), Acquisition Program Baseline (APB), and Cost Accounting System (CAS). PROFICIENCY LEVEL BEHAVIORAL INDICATORS 3Advanced  Identifies FAA priorities and relates them to cost data, financial, overhead, and proposal analyses  Supports the application of federal budgeting processes and procedures to formulate, present, and execute budgeting activities  Serves as an advisor on the Capital Investment Team (CIT)  Tracks and evaluates project expenditures to ensure performance goals and project progress are met 2Intermediate  Identifies and interprets planning requirements resulting from legislation and oversight agencies’ directives  Independently performs cost data, financial, overhead, and proposal analyses  Reviews project proposals to identify impacts and action plans for the FAA  Analyzes historical cost data to develop accurate cost estimate and tracks expenditures to support management control  Provides internal and external stakeholders with financial and accounting information relevant to the cost estimate  Independently uses knowledge of federal budgeting processes and procedures to support budgeting activities 1Basic  Applies legislative and regulatory requirements to FAA financial practices  References appropriate manuals, documents (e.g., OMB A-76), and other materials (e.g., Exhibit 300, Exhibit 53) relevant to FAA to gain understanding of federal budget formulation, appropriation, presentation and execution  Supports analysis of financial information to produce forecasts of business, industry, and economic conditions for use in making investment decisions  Participates in cost, financial, and proposal analyses and interprets data affecting the cost estimate (e.g., project performance, contract modifications, economic influences, future investment trends)  Describes, at a high level, the roles and responsibilities of oversight and partnering organizations within and outside the FAA (e.g., Treasury, GAO, GSA, OMB)

- 9 - Federal Aviation Administration INVESTMENT ANALYSIS PROJECT MANAGEMENT DEFINITION: Knowledge of project management principles including: PMBOK, Earned Value Management (EVM), risk analysis, cost benefit analysis, scheduling. Knowledge of methods, and tools for planning, scheduling, coordinating, and managing projects and resources. Skill in monitoring costs and work/contractor performance, as they relate to the management of investment analysis projects. Ability to establish project scope, objectives, and plans. Ability to define resource requirements, implementation plans and metrics. Understanding of the concepts, tools, and processes in preparing cost estimates. PROFICIENCY LEVEL BEHAVIORAL INDICATORS 3Advanced  Serves as an advisor on project management principles and methodologies and mentors others on the application  Coordinates an integrated master plan for life-cycle management and support  Anticipates and plans for future project resource needs, limitations, and challenges  Develops and implements multi-task investment analysis project plans with various scope and time constraints (e.g., project reviews and oversight processes)  Advises others on the application of EVM to investment analysis projects 2Intermediate  Independently applies project management principles and methodologies to manage investment analysis projects  Participates in project risk assessment and mitigation strategy development activities  Develops alternative and innovative methods to maximize resources  Develops and documents an integrated investment analysis master schedule; organizes and completes investment analysis project tasks within established time and budget constraints  Applies the results of EVM to investment analysis projects 1Basic  Uses project management tools to plan, organize, and monitor project tasks  Determines project scope and objectives; prepares project components at the task level during Work Breakdown Structure (WBS) development  Supports the development of business cases and investment analyses, as practiced in the FAA  Acquires knowledge of EVM policies, methodologies, and tools/software

Federal Aviation Administration FAA ORGANIZATIONAL POLICIES AND PROCEDURES DEFINITION: Understands the FAA processes, procedures, and policies. Recognizes the interdependencies and relationships among FAA organizational components. Applies organizational understanding to perform duties and tasks. PROFICIENCY LEVEL BEHAVIORAL INDICATORS 3Advanced  Participates in the development of FAA strategic direction, short- and long-term goals, missions, and functions to support business case and investment analysis  Participates in the development of FAA policies, procedures, rules, regulations, and guidelines  Interacts and networks with key FAA staff and provides insight on the operations of these organizations  Provides clarity to various staff regarding their roles and responsibilities and how they fit into the organization 2Intermediate  Applies knowledge of FAA strategic direction, short- and long-term goals, missions, functions, and cultures to perform business case and investment analysis activities  Applies knowledge of how FAA organizations are aligned and how various functions fit into the organizations to accomplish goals  Resolves issues and solves problems that require a detailed understanding of FAA policies, procedures, rules, regulations, and guidelines  Recognizes the impact of programs and policies on own function and work assignments 1Basic  Provides high level overviews of FAA strategic direction, short- and long-term goals, missions, functions, and cultures  Summarizes how FAA organizations are aligned and how various functions fit into the organizations to accomplish goals  Seeks guidance to interpret FAA policies, procedures, rules, regulations, and guidelines

Federal Aviation Administration General Leadership CompetencyDefinition Agility Works effectively under pressure (e.g., flexible, adaptable, resilient). Changes viewpoints, behavior and work methods in response to new information. Handles complex or ambiguous situations effectively. Demonstrates a positive attitude to achieving results. Recovers quickly from setbacks. Learns from experience (failures and successes). Customer Focus Seeks and uses customers’ feedback and suggestions to enhance one’s own effectiveness. Shares information and ideas with customers. Considers customers and stakeholders viewpoints when making decisions. Stays informed of customers’ needs and challenges. Takes into account the impact of one’s own performance on the stakeholders. Helps to build customer and stakeholder understanding of organizational policy, business, and operational issues. Interpersonal Relations and Influence Supports key business strategies and initiatives. Helps build consensus. Consistently treats others with respect. Develops rapport with others. Handles emotionally charged or controversial issues responsibly. Helps to avoid or resolve conflicts in the workplace Communication Ability to actively listen to and understand information and ideas presented through spoken words and sentences. Ability to communicate information and ideas in speaking so others will understand. Ability to communicate ideas, thoughts, facts in writing. Skill in using correct grammar, correct spelling, sentence and document structure, and accepted document formatting to communicate a message in writing. Tailors oral and written communications to a level appropriate for the intended audience. Teamwork/Collaboration Collaborates with others to achieve goals. Encourages and facilitates cooperation and trust and fosters commitment. Makes contributions as part of a team and encourages other team members to contribute. Understands how actions affect others. * Non-technical competencies are from the FAA General Leadership Competencies list