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Component Cost Position (CCP)

DAU GLOSSARY DEFINITION

The cost position established by the DoD Component that is derived from the DoD Component Cost Estimate and the Program Office Estimate per DoD Component policy prior to Milestones A, B, and C and the Full Rate Production decision. It must be signed by the DoD Component Deputy Assistant Secretary for Cost and Economics (or defense agency equivalent) and include a date of record.

General Information

The DoD Component will establish a documented DoD Component Cost Position that covers the entire life cycle of the program for all Major Defense Acquisition Programs (MDAP) prior to Milestone A, B, C, and the Full-Rate Production Decision Reviews. The DoD Component Deputy Assistant Secretary for Cost and Economics (or defense agency equivalent) must sign the DoD Component Cost Position and include a date of record.

At the Milestone A, B, C and Full-Rate Production Decision reviews, the DoD Component must fully fund the program to the Component Cost Position in the current Future Years Defense Program (FYDP), or commit to full funding of the cost position in the next FYDP, with identification of specific offsets to address any funding shortfalls that may exist in the current FYDP. The Component Acquisition Executive and the DoD Component Chief Financial Officer must endorse and certify in the Full Funding Certification Memorandum that the FYDP fully funds, or will fully fund, the program consistent with the DoD Component Cost Position. If the program concept evolves after a milestone review, the Service Cost Agency may update the DoD Component Cost Position, and the DoD Component may fully fund the program in the FYDP to the updated DoD Component Cost Position.