Component Cost Estimate (CCE)
DAU GLOSSARY DEFINITION
Documents the cost analysis conducted by the Service Cost Agency (SCA) in cases where the SCA is not developing an ICE. This cost analysis may range from an SCA non-advocate estimate, independent SCA assessment of another government estimate, or other SCA cost analysis, as determined by the SCA and reflected in DoD Component policy before Milestones A, B, and C and the FRP decision. The CCP must be signed by the DoD Component Deputy Assistant Secretary for Cost and Economics (or Defense Agency equivalent) and include a date of record.
A DoD Component Cost Estimate is provided to the Milestone Decision Authority (MDA) and to the Director, Cost Assessment and Program Evaluation (DCAPE) at Milestones A, B, C and the Full-Rate Production Decision Review (FRPDR). DCAPE reviews all cost estimates and cost analyses conducted in conjunction with Major Defense Acquisition Programs (MDAP). In order to accomplish this, 10 U.S.C. § 22334 (b) requires that DCAPE promptly receive the results of all cost estimates and analyses conducted by military departments and Defense Agencies.
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The generic term "DoD Component Cost Estimate" is used to provide considerable latitude to each military service or defense agency as to the actual responsibility for this cost estimate. In some cases, a military service assigns the responsibility to the program office, which then provides a Program Office Life-Cycle Cost Estimate (PLCCE). In other cases, the DoD Component may adopt a more corporate approach, where an initial program office cost estimate is subject to considerable review and possible adjustment as determined by the Service Cost Center or defense agency equivalent.
Each DoD Component establishes a DoD Component-level cost position for all Major Defense Acquisition Programs (MDAP) programs at milestone reviews. To support the DoD’s full funding policy for acquisition programs, as well as statutory certifications and regulatory requirements, the DoD Component is expected to fully fund the program to this cost position in the current President’s Budget Future Years Defense Program (FYDP), or commit to full funding of the cost position in the next President’s Budget FYDP, with identification of specific offsets to address any funding shortfalls that may exist in the current FYDP. In addition, the appropriate Deputy Assistant Secretary of the Military Department for Cost and Economics (or defense agency equivalent) signs for the DoD Component-level cost position, and the DoD Component Acquisition Executive and the Component Chief Financial Officer endorses and certifies that the FYDP fully funds the program consistent with the DoD Component-level cost position.