Data for Costing Data for Parametric Costing Mort Anvari Director, Acquisition Costing (SAFM-CEA) 2008 Cost Research Workshop Acquisition Cost and Earned Value Reports: Data Quality Issue May 22, 2008

2 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

4 May 22, 2008 Data DAES Status Army Programs 11 6 DAES Status as of May 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 Knowledge Data 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 Reports Labor – 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 dated May  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 2 Contractor 3 Contractor Accountin g Systems: S1S1 S3S3 S4S4 S2S2 S5S5 S6S6 S7S7 S8S8 S 10 S9S9 Contractor Data / Reports: R1R1 R3R3 R4R4 R2R2 R5R5 R6R6 R7R7 R8R8 R 10 R9R9 R 11 R 12 R 13 R 14 R 15 R 16 R 17 R 18 Labor vs. Material Direct vs. Indirect Rec. vs. Non Rec. Unique vs. Common Contractor allocation Contracting Labor vs. Material Direct vs. Indirect Rec. vs. Non Rec. Unique vs. Common Contractor allocation Contracting G1G1 G2G2 G3G3 Contractor Allocation Data Quality?  Process affects data quality.  Increases probability for data errors.  Results in mapping / allocation inconsistencies. Process vs. Quality. 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 Contractor Database Current Data Collection Process. DCARC Database ACDB Database Contractor Allocation Army CES Allocation … HDBK Element 3 HDBK Element 2 HDBK Element 1 DCARC / DoD MIL-HDBK-881 … Sys 3 Sys 2 Sys 1 Contractor Accounting System ACDB / Army CES CES Element 1 CES Element 2 … CES Element 3 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 CES Allocation  Contractor data mapped twice.

12 May 22, 2008 Data STRYKER  Unit cost should not increase over time; suggests no learning. FOUO

13 May 22, 2008 Data STRYKER FOUO  Hull / Structure thought to be common but data does not support commonality.  Percentage of common parts for all HW WBS elements range from %.

14 May 22, 2008 Data STRYKER FOUO  Large variation in the unit costs for delivery orders 2, 10, 19, and 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 Sub-Contractors

18 May 22, 2008 Data Lead System Integrated (LSI) MGVs MULE UGV Integrated Computers 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 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 Microsoft Windows Vista: 50 System of Systems Software Total kSLOC C4ISR41,672.2 System of Systems Common Operating Environment (SOSCOE) 29,866.0 NSIV1,070.7 IS&T7,889.7 MGV3,649.0 Logistics1,337.3 Training2,201.1 UAV658.2 UGV9,245.8 Total FCS97,590.1 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 Informational Systems / Databases Contractor Sys 1 Contractor Sys 2 Contractor Sys 3 Contractor Sys 4 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. Information Delivery System Government Informational Systems / Databases Data Warehouse External Data External Users 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