5. DoD 5000.4-M. Cost Analysis Guidance and
Procedures, December 1992
Chapter 1: (Outline of
CARD Basic Structure)
Para 1.2.1. x (.. x..) Subsystem Description
This series of paragraphs
(repeated for each subsystem) describes the major equipment (hardware/software)
WBS components of the system. The discussion should identify which items are
off-the-shelf. The technical and risk issues associated with
development and production of individual subsystems also must be addressed.
This section identifies the program manager's assessment of the program and
the measures being taken or planned to reduce those risks.
Relevant sources of risk include: design concept, technology
development, test requirements, schedule, acquisition strategy, funding
availability, contract stability, or any other aspect that might cause a
significant deviation from the planned program. Any related external technology
programs (planned or on-going) should be identified, their potential
contribution to the program described, and their funding prospects and potential
for success assessed. This section should identify these risks for each acquisition phase (DEM/VAL, EMD,
productions and deployment, and O&S).
Para 2.B.9 Sensitivity
The sensitivity of projected costs to critical program assumptions shall be
examined. Aspects of the program to be subjected to sensitivity analysis shall
be identified in the DoD CCA of program assumptions. The analysis shall include
factors such as learning curve assumptions; technical risk,
i.e., the risk of more development and/or
production effort, changes in performance characteristics, schedule
alterations, and variations in testing requirements; and acquisition strategy
(multiyear procurement, dual sourcing, etc.).
Para 2.C.3 PM
The Program Manager's designated representative shall present the CAIG with
the POE for each alternative under construction and explain how each is derived.
This presentation shall cover the estimates and estimating procedures at the
major subcomponent level (e.g., airframe, engine, major avionics subsystem,
etc.). The presentation should focus on the items that are cost drivers and/or
elements of high cost risk.