Operating and Support (O&S) Cost Management Guidebook

According to OSD, "this guidebook highlights the criticality of early O&S cost management through product design and the Product Support Strategy (PSS). The guidebook helps users focus their requirements, design and product support planning activities to identify and pursue early procedural means to mitigate O&S costs and specific tools to reduce O&S costs. Additionally, the guidebook provides a set of tools for effectively communicating O&S cost assumptions, comparisons, and risks to support acquisition decisions and program reviews….This guidebook is for program, business, engineering, requirements and life cycle logistics management professionals. It provides an approach to O&S cost management with an emphasis on early design trades that influence O&S costs. The Program Manager (PM) and his/her supporting staff, including the Product Support Manager (PSM), Business Financial Manager (BFM), and Chief Engineer, will benefit most from this guidance. Additionally, Component acquisition, resource and requirements officials will benefit during the pre-program phase, as they set the conditions for effective and affordable life cycle product support. This guidebook complements existing guidance for the PM and PSM in the task of planning and executing affordable product support."

This guidebook is complemented by:

• The Cost Assessment and Program Evaluation (CAPE) Operating and Support Cost Estimating Guide
• The Cost Assessment and Program Evaluation (CAPE) Analysis of Alternatives (AoA) Cost Estimating Handbook
• Product Support Manager's Guidebook
• Integrated Product Support Element Guidebook

This guidebook directly influences the:

• Life Cycle Sustainment Plan (LCSP)
• Should Cost Estimate

This DoD Operating and Support (O&S) Cost Management Guidebook is not to be confused with the DoD Operating and Support (O&S) Cost Estimating Guide. They are separate and distinct documents, issued by different DoD organizations, and intended to complement one another. To clarify:

• This "O&S Cost Management Guidebook" was issued in February 2016 by the then-Assistant Secretary of Defense for Logistics & Materiel Readiness (L&MR) (now ASD (Sustainment))
• The "O&S Cost-Estimating Guide" was issued in September 2020 by the Cost Assessment and Program Evaluation (CAPE)   
   

This document is part of an Integrated Product Support Guidebook Suite and serves as an important resource for defense acquisition workforce members to use in crafting and successfully executing life cycle product support and sustainment strategies.