Executive Briefing - Aerospace Industries Association€¦ · Executive Briefing Joint Space Cost Council October 2018. 2 JSCC Joint Space Cost JSCC Background Council Cost estimating

JSCCJoint Space Cost

Council

Executive Briefing

Joint Space Cost Council

October 2018

2


CouncilJSCC Background

Cost estimating issues raised at AIA Executive Space Industry Roundtable – Nov

05

• No clear interface points/opportunities for dialogue between industry and government

leadership

• Not exploiting opportunity to engage and identify potential substantive mutual areas for

improvement

Undersecretary of Defense for AT&L and Undersecretary of the Air Force

endorsed establishment of working group to study issue

• Improved collaboration with both oversight and service/agency levels needed

AIA Executive Space Board of Governors approved formation of Joint Space Cost

Council to work issues – Nov 07

JSCC actively working several areas to improve cost credibility and realism in our

estimates, budgets, schedules, data, proposals and program execution

Joint Government and Industry Leadership

JSCC Is Enhancing Space Cost Estimating

3


CouncilCo-led between Government & Industry - represents a

large segment of the space cost analysis community

Jen Rose

NRO CAAG

George Barbic

Lockheed Martin

Co-Leadership

4


CouncilRealistic Cost Estimates drive acquisition process

efficiency and support realistic program baselines

JSCC BOE

Guide2016-2018

RFPs with Data

Driven BOEs

-AF Decision

based on cost

realism

protested but

upheld by GAO

-3 NRO

Evaluations

Complete

Streamlined

evaluation

based on

historical data

leads to more

realistic

program

baseline

Contractor

Proposal

Development

Efficiencies

reduces indirect

cost

Accomplished Up Next

RCE Training

-Defining

characteristics

of a “good” Cost

Estimating

Relationship

RCE Outreach

-Increase

Adoption

-Use of data

driven BOEs on

Sole Source

Acquisitions

5


CouncilThought Leadership in Integrated Program Management

leads to EVM improvements

Better Earned Value

Management System

Study

Phase I incorporated in

Husband Nicolls report

and Better Buying Power

2.0 Initiative

Summary of findings and

conclusions published in

Defense AT&L Magazine


JSCC

Scheduler’s

Forum

-Resource

Loading White

Paper

-Improvements to

the management

of GFx

-Repository of

Management

Reports

Concurrently Verifying and

Validating the Critical Path

and Margin Allocation Using

Probabilistic Analysis White

Paper

6


CouncilGovernment-Industry consensus standardizes data in the

space community

Mil Standard 881c Appendix F

The JSCC worked several

years to develop a SWBS that

balanced a desire for detailed

cost collection with concern to

avoid an undue burden

Joint Government/Industry

advocacy resulted in JSCC

recommendation being adopted

by DoD

During first implementation,

government and Industry

continued to work together to

address misinterpretations

Mil Standard 881d Appendix

F and L

Industry and Government

consensus on major changes

to ground segment WBS

based on new ground

architecture (integrated, not

stove-piped; cloud computing)

Lower level, standardized

definitions for SEIT/PM

Collaboration between

government and industry led to

success in applying

recommendations


-Dialogue with

CAPE on FlexFiles

and Tech Data Pilots

and Implementation

-Increased use of

data driven

proposals

-Update to 881 for

more detail in

launch, development

test and operational

test

7


Council

2019 Work

Products

JSCC

Communications Outreach

Cost Methods AcquisitionEVM &

Schedulers Forum

CADE

Executive Steering

Committee

Sub-Committee Structure extends JSCC’s reach

Enhance

collaboration and

presence of the

JSCC to both

government and

industry

executive

leadership

Concurrently

Verifying and

Validating the

Critical Path and

Margin Allocation

Using

Probabilistic

Analysis

Management of

Government

Furnished

Equipment (GFx)

Resource

Loading White

Paper

Implement the

Proposal

Process

Improvement

initiative and

address other

important

acquisition topics

such as certified

cost positions,

should cost, agile

acquisitions

JSCC

Recommendations

for Rapid

Acquisitions

Communicate

and collaborate

with CAPE on

key CADE topics

of interest such

as FlexFiles,

DD1921-T

reporting, CSDR

architecture

Collaborate to

develop and

enhance cost

methods

including Data-

driven BOE’s,

SEITPM data

collection, should

cost, and explore

estimating of

emerging

disciplines such

as Cybersecurity

2019 RCE

Training

Sub-

Committee

Sub-

Committee

Key

objectives

8


CouncilCost Integrated Product Team (CIPT) vs JSCC:

different focus, objectives, results

NRO/NASA/SMC CIPT

• One-on-one sessions between government and

Industry Partners result in common

understanding of data and action items to share

information

• General Session with overarching topics of

interest including cost estimating research,

methods development, and organizational

updates

• Controlled exchange of proprietary information

Results

• Government and Contractor use commons set

of normalized data to analyze historical

performance to estimate future programs

• Mutual understanding of cost estimating

techniques used by government and industry

• Insightful briefings on technical capabilities

JSCC

• Focus on overarching topics as they apply to

Industry as a whole and Government as a

whole

• Working through policy and implementation

issues for mutual benefit

• Guest speakers provide updates on legislation,

CADE and strategic considerations impacting

cost estimating

• Non- Proprietary

Results

• Mil Std 881d appendix F contains JSCC-

recommended standard work breakdown

structure

• Approach to the development and evaluation of

data driven, realistic cost estimates applied in

pilots across the national security space

community

• Better EVM Implementation Recommendations

incorporated into Better Buying Power

CIPT and JSCC have overlapping membership but distinct activities and

results

9


CouncilSummary

The JSCC has been highly effective in addressing key cost estimating,

EVM and acquisition issues over the last several years and continues to

focus on improvements

The JSCC has established a strong forum for collaboration, communication

and interaction between government and industry

• Extended outreach out to several other CIPTs, including non-Space

• Expanded participation (e.g., GAO, PARCA, DCMA)

The JSCC has been successful in implementing Cost Estimating Initiatives

important to both government and industry, and continues to investigate

new initiatives consistent with government and industry focus (e.g.,

affordability)

Cost Estimating Accuracy & Credibility Continue to be Critical to Both

Government and Contractors

10


CouncilGet involved with JSCC

The JSCC is always interested in topics to investigate

• We are looking to you to help identify challenges in:

- Space cost estimating,

- EVM,

- Acquisition,

- Or any other topic with a cost impact for JSCC to explore and

address

Participate in JSCC meetings and sub-councils

• New members are welcome

• March, July and October General Session Meetings

11


CouncilAccomplishments influence policy and practice

Topic Accomplishment Impact

Standard WBS Define standard work breakdown structure,

codify it as a standard and systematically

apply it

Consistent cost collection improves basis for

government estimating and industry cost

proposals

Data Driven Basis

of Estimate

Document that establishes guidelines for

using historical data rather than engineering

build-up in proposals, including

recommendations and sample RFP language

Reduced contractor effort associated with

proposal development and review; improved

quality and credibility of BOEs

Identify and

Quantify Cost and

Schedule Risk

Top-level risk briefing demonstrating risk

application process & limitations of risk

analysis

Improved understanding of contractor /

customer / ICE risk scope and process; better

understanding of uncertainties prior to contract

award, and continued insight through the life of

the program

Realistic

Technical and

Schedule

Baseline

Developed handbook & ‘rules of thumb’ for

novice SMC cost estimators to assess

realism of technical parameters

Ability to Initiate proposal with realistic, agreed

to, program baseline

Improved basis for program evaluation

Cost Estimating

Methods White

Papers

Comparison of estimating techniques across

government costing organizations for Cost

Improvement, Inflation, Phasing, SEITPM,

Obsolescence

Industry better understands customer methods

and practices

Better EVM

Implementation

Recommendations for decreasing cost and

improving value of EVM incorporated in

Better Buying Power

Identifying and piloting ways to improve

acquisition

12


CouncilGuest Speakers help JSCC stay current on

topics of interest (2018)

Date Speaker Topic

3/2018 Neil Albert NDAA 2016 Section 809 Panel

3/2018 Frank Janicki and Dave Lyons, OSD CAPE CADE Initiatives, FlexFiles Pilots

7/2018 Data Driven Proposal Development and Realistic Cost

Analysis

Jim Roth, NRO

7/2018 2019 National Defense Authorization Act (NDAA) Current

Status and Potential Impacts on Acquisition and

Procurement

Jon Etherton, Etherton and Associates

10/2018 NDAA Section 804 Rapid Acquisitions Bill Seeman/AFCAA and Neil Albert/PARCA

3/2019 Acquisition Initiatives Panel Barbara Baker/SMC and Bill Young/NRO

13



topics of interest (2017)

Date Speaker Topic

3/2017,

7/2017

Bess Dopkeen, DoD CADE Status of CADE Initiatives, FlexFiles DID, Pilots,

Implementation

3/2017 Ron Youngs, AIA Legislative Update

3/2017 Stephanie Patton/CAPE Operations Research Analyst 2017 National Defense Authorization Act, including the

broadening of CAPE responsibilities

7/2017 Pam Schwenke, Deputy Assistant Secretary for Cost and

Economics, Office of the Assistant Secretary of the Air

Force for Financial Management and Comptroller

SAF FMC Update

7/2017 Rich Hartley, Principal Deputy Assistant Secretary of the Air

Force for Installations, Environment and Energy

Observations, Assessments and Advice for the Cost

Community

3/2017,

7/2017

Neil Albert Mil Standard 881d content, schedule, Operations and

Sustainment

10/2017 Vincent Perez, DCMA Director, Cost and Pricing Center DCMA Pricing Update

10/2017 Barbara Baker, SMC Contracts Director and Bill Young,

NRO Head of Contracts

Acquisition Panel

10/2017 Grant McVicker, Associate Deputy Assistant Secretary for

Cost and Economics, Office of the Assistant Secretary of

the Air Force for Financial Management and Comptroller

Bomber Program Lessons Learned

10/2017 Jim Fiume, Director, ODNI SRA/CA Design Life Study

14



topics of interest (2013-2016)Date Speaker Topic

7/2016 Dr. Gorguinpour, Director of Transformational Innovation

for the United States Air Force

Bending the Cost Curve Update, with focus on Space

Business

7/2016 Keith Freeman, Director of Proposal Pricing from the

DCMA Cost and Pricing Center

Current structure and priorities, discussion of proposal

improvement opportunities

7/2016 Neil Albert Update to Mil Standard 881(c)

Periodic

Updates

Bess Dopkeen, CAPE/Adv Systems Cost Analysis Division

John Fitch, Naval Center for Cost Analysis

Greg Hogan, AFCAA

Cost Assessment Data Enterprise (CADE) Project

3/2016 John McGregor, Deputy Director for Earned Value

Management, DoD PARCA

CSDR-EVM Co-Plan Process

6/2015

7/2013

Richard K. Hartley, AF/A5/8 AF Budget Realities: Difficult Decisions

What a Programmer Needs in Cost Analysis

7/2014 Christopher Riegle, ODNI Project Conclusion: Acquisition & Contract Type Study

Periodic

Updates

Frank Slazer, Vice President, Space at Aerospace

Industries Association

Aerospace Industries Update

10/2013 Keith Robertson, NRO; Jenny Tang, SMC; Dr. Eric Unger,

SMC

Status of Will Cost/Should Cost Implementation

5/2014 Russ Higgins, NRO Office of Finance Vehicle E-Invoicing

3/2015 Dr. David Nicholls, DoD PARCA OUSD (AT&L) Study: Assessment of DoD Application of

EVM

Documents

Executive Briefing - Aerospace Industries Association€¦ · Executive Briefing Joint Space Cost Council October 2018. 2 JSCC Joint Space Cost JSCC Background Council Cost estimating