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Life Cycle Logistics

Achieving System Readiness and Life Cycle Cost Reductions

Achieving System Readiness and Life Cycle Cost Reductions

Bill Kobren

Life Cycle Cost (LCC), Total Ownership Cost (TOC), and Operations & Support (O&S) Cost reductions – and certainly those vitally-important best value product support solutions which optimize system readiness, availability and affordability – will continue to be critical considerations in the coming months and years for life cycle logisticians in general, and Product Support Managers (PSM) in particular. As a public service, I’ve captured several excellent references, resources, tools, and articles on the subject which may prove useful to you as you seek to develop optimized, outcome-based, best-value product support and sustainment strategies for your own programs. This list is by no means complete, but is an excellent starting point.

·         DoD 5000.4-M “Cost Analysis Guidance and Procedures” (Dec 92)

·         DoD Cost Analysis Improvement Group (CAIG) (now CAPE) “Operating and Support Cost-Estimating Guide” (Oct 07)

·         DoD O&S Cost Analysis Guidebook  – Expansion and updated to existing 2007 CAIG O&S Cost Estimating Guide above; currently in early stages of development by a DoD team led by the Office of the Deputy Assistant Secretary of Defense (Materiel Readiness). Will be posted on the DAU Logistics Community of Practice (LOG CoP) when published. (ECD: Dec 11)

·         DoD Product Support Business Case Analysis (BCA) Guidebook currently in the final stages of development by the Office of the Deputy Assistant Secretary of Defense (Materiel Readiness). Will be posted on the DAU Logistics Community of Practice (LOG CoP) when published (ECD: Mar 11)

·         GAO-09-3SP GAO Cost Estimating and Assessment Guide: Best Practices for Developing and Managing Capital Program Costs (Mar 09)

·         DoD Reliability, Availability, Maintainability-Cost (RAM-C) Report Manual (Jun 09)

·         U.S. Army Logistics Support Activity (LOGSA) Cost Analysis Strategy Assessment (CASA) Total Ownership Cost Model

·         Life Cycle Cost Analysis ACQuipedia Article

·         Defense Acquisition Guidebook Chapter 3.7.2.1 - Select Methods and/or Models

·         Joint Capabilities Integration Development System (JCIDS) Manual, Enclosure B, and JCIDS Manual Enclosure B, Appendix B

·         DAU BCF 215 “Operating and Support Cost Analysis” Course

·         Reduction of Total Ownership Costs (R-TOC)

·         Defense Acquisition Review Journal (ARJ) Magazine Article “It’s Time to Take the Chill out of Cost Containment and Re-energize a Key Acquisition Practice (Apr 10)