Original Date: 09/15/1997
Revision Date: 01/18/2007
Information : Matrix Cost Estimating
The Ammunition Equipment Directorate (AED) follows a formalized proposal process consisting of estimating man- hours, material cost, contract cost, and travel required to provide needed equipment and technical support requested by its inter-service customers.
The AED specialty is designing, prototyping, producing, and fielding Ammunition Peculiar Equipment (APE) for production and demilitarization of chemical and conventional ammunition. The AED anticipates the needs of its customers through an awareness of ammunition technology, manufacturing processes, inventories, field conditions, and constant contact with its customers and potential customers. When AED or its customers indicate a requirement that cannot be met with existing APE, the AED works closely with the Industrial Operations Command (IOC) and APE manager to quickly develop, budget, and fund a project to provide the needed equipment and technical support in a timely manner.
Most proposals are for APE and cover concept and engineering studies, ammunition testing and prototype development, and production of APE. Costing elements are presented in estimated man-hours required to perform the work, raw material for machining, contracts for major components, and travel for fielding the equipment. Labor costing is determined for each functional element contributing to the work to be performed. Estimates are based on experience, past history, and current costing conditions. A justification and impact statement is provided with each project proposal. Small projects less than $25 thousand are completed within a year funding cycle, while larger projects require carry-over money to extend into a second year.
A key element of the proposal process is to work closely with the IOC and its customers to budget for anticipated needs, thus avoiding lengthy and drawn out funding procedures. This approach makes equipment available when needed instead of delaying the design and fabrication until the requirement is immediate.
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