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  2. Operating and Support (O&S) Cost Key System Attribute (KSA)

Operating and Support (O&S) Cost Key System Attribute (KSA)

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One of the mandatory KSAs that supports the Sustainment Key Performance Parameter (KPP). Costs are to be included regardless of funding source or management control. The O&S cost value should cover the planned lifecycle timeframe, consistent with the timeframe and system population identified in the Sustainment Key Performance Parameter (KPP). All O&S cost elements included in the Director, Cost Assessment and Program Evaluation (CAPE) Cost Estimating Structure must be considered.

General Information

The Joint Requirements Oversight Council (JROC) established two metrics to address availability and changed the name of the KPP from Materiel Availability to Sustainment. The Sustainment KPP separated Availability into two components of Materiel Availability (Am) and Operational Availability (Ao) to provide fleetwide and operational unit measurements. To strengthen the emphasis on O&S Costs, which for most programs constitute the majority of the life cycle cost, "Ownership Cost" was changed to "O&S Cost" in the revision to the Joint Capability Integration and Development System (JCIDS) Manual dated 19 January 2012. The current version of the JCIDS Manual continues this requirement. 

The fact that the Sustainment KPP and the threes supporting KSAs (Reliability (R), Maintainability (M) and O&S Cost) are mandatory is not coincidental. Achieving high R has a cost, as does achieving superior M and a high Availability (A). (R, A and M are also commonly known as "RAM", which are essential elements of mission capability.)  The Sustainment KPP and supporting KSAs taken together bound the trade space for "designing in" supportability and planning affordable life cycle product support.

The establishment of O&S Cost as a mandatory KSA for Acquisition Category (ACAT) I programs was intended to focus attention on O&S costs in making materiel readiness decisions. The JCIDS Manual directs the use of the CAPE O&S CES.

Note that there is a difference between the O&S Phase of the life cycle and O&S Costs, which can occur in other phases as well as in the O&S Phase. The O&S Phase of the life cycle in a DoD weapon system begins when the system initiates operations and lasts until the operating unit removes the final system from operations. O&S Costs are the costs of sustainment incurred from the initial system deployment through the end of system operations. Specifically, this consists of the costs (organic and contractor) of personnel, equipment, supplies, software, and services associated with operating, modifying, maintaining, supplying, training, and supporting a system in the DoD inventory.