Report of the OSD CBM+ Action Group
2010 Summer Study
Information on Conducting Business Case Analyses
For Condition Based Maintenance Plus (CBM+)
Initiatives
October 2010
Office of the Secretary of Defense
Acquisition, Technology, and Logistics Maintenance Policy and Programs
Washington, D.C. 20301-3140
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Preface .......................................................................................................................................................... 3
General Guidance and Information .............................................................................................................. 3
CBM+ BCA Framework ................................................................................................................................... 5
I. Executive Summary ........................................................................................................................... 6
II. Boundaries and Assumptions ............................................................................................................ 6
III. BCA Alternatives ................................................................................................................................ 8
IV. Return on Investment (ROI) ............................................................................................................ 12
V. Risk Assessment ............................................................................................................................... 14
VI. Comparison and Sensitivity Analysis ............................................................................................... 14
VII. Conclusions ...................................................................................................................................... 14
VIII. Recommendations ........................................................................................................................... 14
CBM+ BCA Extracts ...................................................................................................................................... 15
Appendix A – CBM+ Scoping Questions ...................................................................................................... 16
Appendix B – CBM+ BCA Outline ................................................................................................................. 22
Appendix C – CBM+ Related Definitions/Descriptions ................................................................................ 23
Appendix D – CBM+ Cost Elements Structure ............................................................................................. 24
Appendix E – CBM+ Measures of Effectiveness .......................................................................................... 25
Appendix F – References ............................................................................................................................. 26
Appendix G – CBM+ BCA Reference Extracts .............................................................................................. 27
List of Figures
Figure 1 – Scoping a CBM+ BCA .................................................................................................................... 4
Figure 2 – CBM+ Infrastructure ..................................................................................................................... 5
Figure 3 – CBM+ BCA Process ........................................................................................................................ 6
Figure 4 – Example CBM+ Increments or COAs ............................................................................................. 9
Figure 5 – Summary of Common Cost Estimating Tools and Application ................................................... 11
Figure 6 – Notional CBM+ Investment and ROI Chart Examples ................................................................. 13
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Preface
The Office of the Under Secretary of Defense (OSD) for Acquisition, Technology, and Logistics (AT&L), in collaboration with the Military Services, has developed this planning guidance to assist Service Acquisition and other Department of Defense (DoD) organizational components in developing Business Case Analyses (BCAs) for evaluating and assessing methodologies and approaches to implement effective Condition Based Maintenance Plus (CBM+) initiatives within DoD system acquisition and sustainment programs. This paper documents the results and findings of an OSD‐sponsored Study Team review of CBM+ related BCA efforts from within DoD, industry, and academia in conducting BCAs for CBM+ capability/components. This paper provides a framework, general guidance, and essential factors that should be addressed to properly scope, define, and conduct a BCA for CBM+ initiatives within any phase of the acquisition lifecycle. This paper is intended to supplement existing DoD and Service‐specific guidance for developing BCAs related to CBM+. A key objective for this paper is to outline a flexible and effective BCA approach that can be tailored and affordable in both time and cost to support program manager’s implementation of CBM+ policy in accordance with the OSD CBM+ Guidebook, Reference A. This paper provides an overall CBM+ BCA process, a common set of cost elements, measures of effectiveness, a notional BCA framework, and factors to consider when assessing and subsequently conducting a CBM+ BCA. This paper should help shape an understanding of the areas that CBM+ capabilities might benefit a program/system, in order to support a go/no‐go decision and subsequent investment decisions with justifiable information. General Guidance and Information
CBM+ is the application and integration of appropriate processes, technologies, and knowledge‐based capabilities to improve the reliability and maintenance effectiveness of DoD systems and components. At its core, CBM+ is maintenance performed based on evidence of need provided by Reliability Centered Maintenance (RCM) analysis and other enabling processes and technologies. CBM+ uses a systems engineering approach to collect data, enable analysis, and support the decision‐making processes for system acquisition, operations, and sustainment. In evaluating potential CBM+ capabilities, whether they are technologies, maintenance processes, or information/data knowledge applications, a BCA needs to address these areas in a comprehensive and consistent manner, particularly when an incremental acquisition or fielding strategy is being considered. Although the basic concept and purpose of BCAs are generally understood throughout DoD, many interpretations exist regarding assessment of CBM+ capabilities to ensure appropriate and accurate considerations are given to CBM+ capabilities, costs, and benefits. So, what is a BCA? A BCA is a decision support document that identifies alternatives and presents convincing business, economic, risk, and technical arguments for selection and implementation to achieve stated organizational objectives/imperatives. A BCA does not replace the judgment of a decision maker, but rather provides an analytic and uniform foundation upon which sound investment decisions can be made. The subject of a BCA may include any significant
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investment decision that leadership is contemplating. For example, a BCA may be used to substantiate the case to invest in a new weapons system, but not at the same level as a Capabilities Based Assessment; transform business operations; develop a web‐based training curriculum; or retire an asset. In general, BCAs are designed to answer the following question: What are the likely financial and other business (non‐financial) consequences if we execute this investment decision or this action? The possibility exists that any projected savings or cost reductions identified in the BCA could be viewed as an asset available for reallocation in the budgeting process. In evaluating the potential application of a CBM+ capability, it is important to understand the desired end state from a CBM+ metrics perspective and key assumptions that may impact the system or CBM+ capability. Figure 1 outlines a general approach to help define the need for a BCA, understand and define the problem, and define the desired end state. This approach focuses on As‐Is system trends, evaluating Measures of Effectiveness (MOEs) and their cost drivers, key CBM+ metrics, determining if CBM+ is a viable solution and if so, what CBM+ capabilities are applicable, and then defining feasible solutions. Appendix A – CBM+ Scoping Questions provides some general questions and guidance that may relate to your CBM+ initiative. Answers to these questions are provided as information and an approach to support CBM+ implementation. As you plan your CBM+ BCA, they may assist in framing your general approach and strategy and ensure your CBM+ BCA is adequately defined and scoped to address key CBM+ business areas.
Figure 1 – Scoping a CBM+ BCA The National Defense Industrial Association (NDIA) final report of the Systems Enterprise Health Management (EHM) Technology Transition Study Report dated October 2009, Reference B,
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noted that “enabling technologies are not being transitioned and weapon systems are not realizing the value of the capability as quickly as they could, primarily due to inadequate implementation strategies. Properly evaluating enabling technologies with an objective of realizing the CBM+ value more quickly can be accomplished with a common method and process for conducting CBM+ BCAs.” Figure 2, the basic CBM+ infrastructure as described in the CBM+ Guidebook, displays the areas that should be considered as building blocks in designing a new system or modification of existing systems, for overall CBM+ implementation. Considering these areas enables incremental progression of levels of sophistication from foundational source data (e.g., systems/platform sensor data) through a full EHM capability. The levels of sophistication and relationship between CBM+, source data, RCM, and EHM should be considered in the systems engineering process and in conducting a CBM+ BCA.
Sensors
The CBM+
Infrastructure
Analytics
Decision support
Human interfaces
Healthassessment
Conditionmonitoring
Data management
Communications
Figure 2 – CBM+ Infrastructure CBM+ BCA Framework. Figure 3 illustrates a process intended to assist in defining assumptions and boundaries, describing the As‐Is configuration of your current system, defining alternative CBM+ courses of action (COAs) and then doing the risk assessment and sensitivity analysis to arrive at a recommended solution. Collaboration and/or interviews with the customers/ stakeholders may be needed to ensure their needs, expectations, and projected outcomes are clearly understood. This includes identifying and applying appropriate CBM+ cost and MOEs factors that should be considered in planning, conducting, and reporting results of CBM+ BCAs. The specific cost elements, MOEs, and Return on Investment (ROI) will depend on variables associated with your specific system to include: the status of its life cycle, planned product improvements, planned CBM+ increments/upgrades, as well as other external systems which interface with your system or are planned to be integrated within the life cycle of your system.
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• Understand the problem before determining what the solution should be
• What gap or shortfall is being addressed?
• Is CBM+ a viable solution? • What dimension of CBM+ is
applicable?• Describe the desired end state
of the CBM+ capability?
Define key assumptions/
boundary conditions
Assumptions & Boundaries
As-Is Configuration
Alternative CBM+ COAs
Risk Assessment *
Sensitivity Analysis
Problem & Desired End State
• Cost elements, assumptions & models
• Business/ CBM+
Processes• Def initions• Measures of
Ef fectiveness (MOEs) • Return on Investment
(ROI) • Areas not included in
the BCA• External Enablers and
Integration with other systems,
• Operating tempo• Projected useful
service life• Technology forecast
Define critical components of the
current weapon system and its
CBM+ capability
• Cost structure• Actual Costs• Measures of
Ef fectiveness (MOEs)
Describe potential alternatives
solutions/courses of action to reach the
end state
• Cost estimates • Measures of
Ef fectiveness (MOEs) • Performance levels• Risk areas
• Risks• Areas of uncertainty• Measures of
Ef fectiveness (MOEs) • TOC• Performance Levels• ROI
Analyze potential risks and conduct sensitivity analysis
of COAs.
Conclusions & Recommendations
• ROI• TOC• Criticality to mission performance and
readiness• Measures of Ef fectiveness (MOEs) • Combat Power• Risks and risk-reduction strategies
• Collaborate and or interview Customers and Stakeholders
• Understand Customer needs, expectations and projected outcomes
Figure 3 – CBM+ BCA Process The notional CBM+ BCA framework described below and provided in Appendix B – CBM+ BCA Outline is based on CBM+ related BCAs, the Defense Acquisition University (DAU) BCA Template, the Serialized Item Management (SIM) guide, and information obtained from the CBM+ BCA community that participated in the study. Appendix C provides notional definitions from various CBM+ and BCA references adapted for potential use in a CBM+ BCA.
I. Executive Summary The Executive Summary should be clear and concise and present the case for or against the investment options, and demonstrate measureable benefits or detriments to the objectives and goals. This will answer the “so what?” The Executive Summary should also address the overall approach of the BCA; the recommended course of action; pros and cons; why it is the better choice from other considered alternatives, including the ROI (if any); the process that was followed to arrive at the conclusion (including weighting and scoring summary of the criteria along with a brief discussion of how quantitative and non‐quantitative aspects were addressed, and summary results of the sensitivity analyses.); highlights of risk, uncertainties, and implementation considerations including resources required to support the recommendation.
II. Boundaries and Assumptions
a. Goals and Vision. This section should address your strategic objectives and why you are conducting a CBM+ BCA and should clearly articulate an understanding of specific problems that the proposed CBM+ capability is addressing. Include discussion of your business strategy including any phased or incremental CBM+ implementation. The general approach outlined in Figure 1 and the scoping questions provided in Appendix A, are intended help understand the problem, your vision and projected end state to properly scope of your BCA.
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b. Context and Perspective. Discuss specific CBM+ attributes or performance measures for your CBM+ implementation. Relate to specific CBM+ business needs (e.g., need to predict equipment failures, need for greater accuracy in failure prediction, need to reduce the cost of ownership, need to optimize equipment performance (availability)) and metrics as defined in the CBM+ Guidebook, Reference A. Consider any previous related BCA results that can assist in establishing a baseline for cost, MOEs, system performance, combat power, and/or mission impact.
c. CBM+ Metrics. The CBM+ Guidebook, Reference A, outlines measureable objectives for maintenance in a CBM+ environment and five relevant CBM+ operating metrics: material availability, material reliability, ownership costs, and mean down time; and logistics footprint. OSD guidance for Performance Based Logistics (PBL) USD AT&L Ltr 16 Aug 2004 c and Life Cycle Sustainment (LCS), USD AT&L Ltr 10 Mar 2007, Reference D, also provides relevant metrics that can be used to support CBM+
implementation. When defining metrics for your BCA, select a set of metrics, considering Systems Operational Effectiveness (SOEs) metrics, that fairly represent the potential costs and MOEs that you expect to be able to capture, or is available from existing data sources, monitor and properly evaluate with the BCA. Appendix C – CBM+ Related Definitions/Descriptions contains definitions for metrics based on References A, C, and D. Other metrics may also be appropriate when considering predictive capabilities such as advanced diagnostics or prognostics that enable accurate and timely prediction of Remaining Useful Life (RUL). Potential MOEs for Prognostics Health Management (PHM) systems could include advanced warning of failures; increased availability through an extension of maintenance cycles and/or timely repair actions; lower life‐cycle costs of equipment from reductions in inspection costs, downtime, inventory, and no‐fault‐founds; or improved system qualification, design, and logistical support of fielded and future systems as noted in the Analysis of ROI for PHM applied to Electronic Systems, Reference E.
d. Key Assumptions. Key assumptions constitute a critical element of the boundaries of the CBM+ BCA. Not everything included in the analysis is known. CBM+ BCAs, like any forecasting analysis, address future periods and conditions and as much as we utilize data to predict future conditions, any future datum or condition is subject to change from forces that could not be predicted when the analysis was conducted. Assumptions allow us to logically portray reasonable expectations of future circumstances. Tailoring the BCA to fit your case will require adjusting functional areas, weighting factors interfacing systems, sustainment/incremental capability improvements and service life considerations. Suggested areas to consider in defining assumptions should include: areas of integration with other systems; operating tempo; projected useful service life/remaining useful life; expected funding levels; basis for cost estimates; MOEs and related metrics (throughout the life cycle); technology forecast; CBM+ related logistics processes; and areas not addressed in the BCA. Considering these areas will help to ensure the CBM+ BCA is well scoped and defined. It is also important to understand how incremental CBM+ capability improvements may impact ROI and ensure adequate assumptions are
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defined regarding the impact of incremental improvements on ROI. These incremental improvements, as well as improvements to other systems, e.g., Global Combat Support System (GCSS), and maintenance processes, will make contributions to the CBM+ ROI as they come online. Assumptions regarding timing and capability impact on the overall CBM+ ROI should be clearly stated. The ROI contribution of other systems may be significantly greater than one depending on application, access, and use of CBM+ data.
e. Cost Structure. Clearly define the cost elements structure being applied for your BCA. Consider the OSD Cost Analysis Improvement Group (CAIG) Operations and Support Cost‐Estimating Guide, Reference F, and clearly state any assumptions being made particularly in cases where other Service systems interfaces are planned or to be implemented. Be aware that differences exist among the military services’ cost element structures and the OSD CAIG suggested cost element structure. These differences can affect the accuracy and completeness of Operating and Support (O&S) cost estimates. The October 2007 Guide provides suggested approaches and structures for preparing O&S cost estimates. The Defense Cost and Resource Center (DCARC) is a source for related reference material. Appendix D – CBM+ Cost Elements Structure provides a suggested cost element structure that can be used in your CBM+ BCA.
f. External CBM+ Enablers. Identify any systems or interfaces that will impact your CBM+ capability. In addition to making the proper assumptions regarding external systems interfaces and approaches for integrating and implementing those systems, it is also important to specifically define any parameters, protocols, and performance measures. Ensure that any external system that will impact incremental CBM+ capabilities and implementation are clearly identified and defined to the maximum extent.
g. Key Issues. Identify specific key issues that should be addressed in the costs or benefits structure associated with costs or benefits that may be misunderstood and/or misapplied in CBM+ BCA analyses, such as CBM+ metrics; capability; and data/ management system to track results over the life cycle.
h. Evaluation Criteria/Factors. Define specific evaluation criteria related to the CBM+
business needs, ROI, and MOEs.
III. BCA Alternatives. The scope of the CBM+ alternatives being considered in terms of incremental capabilities is important to properly define the As‐Is configuration and boundaries for each alternative being considered.
a. As‐Is Configuration/Condition. Define the As‐Is CBM+ configuration in terms of the existing CBM+ capability itself, the platform/weapons system it supports or is integrated into, and the current system’s CBM+ performance measures/metrics. To the maximum extent possible, describe the As‐Is configuration in terms of the CBM+ functionality (fault detection, isolation, prediction, reporting, assessment, analysis, decision‐support execution and recovery, both on and off‐board); CBM+ business needs; and operating metrics. Where incremental improvements have been
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implemented, provide any prior BCA, Economic Analysis (EA), or analytical data related to CBM+ functionality, CBM+ business needs, and metrics.
b. Description of Alternative Courses of Action (COAs). Potential alternative CBM+ solutions, whether a new system, an enhancement to fielded systems, or an entirely new concept, should be scoped based on an understanding of the program’s strategy and objectives as well as the desired end state from a CBM+ metrics perspective. Define potential alternatives to the As‐Is CBM+ capability in terms of the projected end state of the CBM+ capability as well as the platform/weapons system it supports or is integrated into. Ensure that incremental CBM+ alternatives are properly defined and address as separate COAs based on the systems overall strategy and objectives. COA should be scoped to support the overall program objectives. Figure 4 provides an example of basic CBM+ incremental capabilities.
As‐Is Exisitng platform CBM+capability
Increment 1 Initial Sensor Capability
Increment 2 Increment 1 + Portable Maintenance Aid (PMA)
Increment 3 Increment 2 + Item Unique Identification (IUID)
Increment 4 Increment 3 + Health maintenance
Increment 5 Increment 4 + Decision Support (DS)
Increment 6 Increment 5 + Logistics and C2 Enterprise connectivity
Example CBM+Increments or COAs
Figure 4– Example CBM+ Increments or COAs
c. Projected CBM+ Cost Elements and MOEs.
i. CBM+ Cost Elements. To the maximum extent possible, cost elements should be consistent with the respective Service guidelines, a work breakdown structure consistent with Mil‐Std 881 for the respective weapons systems which the CBM+ capability is being evaluated, and the OSD CAIG ‐ Operating and Support Cost‐Estimating Guide, Reference F.
(1) A number of techniques may be employed to estimate the O&S costs of a weapon system. The suitability of a specific approach will depend to a large degree on the maturity of the program and the level of detail of the available data. Most O&S estimates are accomplished using a combination of one or more of five estimating techniques; parametric, analogy, engineering estimate, actual cost, or cost factors. Cost factors for a CBM+ BCA must be tailored based on the weapon system(s) and CBM+ capability(s) being considered using the OSD Cost‐Estimating Guide, Reference F. Data normalization is a key requirement and should be thoroughly addressed in an appendix or annex to the CBM+ BCA.
(2) The specific cost element structure should follow the general OSD and Service specific cost estimating guidance and be tailored to fit your CBM+ capability. Below is a suggested framework which contains a minimum set of four cost element categories for a CBM+ BCA that must be tailored to the
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respective system and Service requirements. Ensure that recurring, non‐recurring, and infrastructural costs are addressed. Internal costs should reflect Government (military and civilian) and support contractor elements separately thereby enabling combining with external contractor costs when appropriate. A detailed set of suggested cost elements is provided at Appendix D. (a) Research and Development
(b) Investment
(c) Operation and Sustainment
(d) Disposal/System Replacement
(3) Cost models. Various cost estimating tools are available and should be considered and tailored to fit your specific system and cost structure. Commonly used tools and a summary of their application are listed and provided in Figure 5.
(a) Automated Cost Estimating Integrated Tools (ACEIT) supports estimates of Research and Development (R&D), procurement, and/or O&S costs. ACEIT integrates ACE (an automated costs estimating system with “documentation on‐the‐fly” capability and built‐in methodology library including cost estimating relationships cost models, and additional estimating sources); a library of commercial and non‐commercial cost models); RI$K (a model which quantifies risk associated with a cost estimate) and CO$TAT (a cost analysis statistical package).
(b) System Evaluation and Estimation of Resources ‐ Software Estimating Model (SEER‐SEM) is a software project estimation model built upon a mix of mathematics and statistics. It is a decision‐support and process optimization tool that estimates cost, labor, staffing, schedule, reliability, and risk associated with all types of software development projects from mainframe commercial Information Technology (IT) business applications to real‐time embedded aerospace systems.
(c) Crystal Ball (similar to @Risk estimating software) is a spreadsheet‐based application suite for predictive modeling, forecasting, simulation, and optimization.
(d) Constructive Cost Model II (COCOMO II) is a model that allows one to estimate the cost, effort, and schedule when planning a new software development activity.
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Cost Element Cost Risk AnalysisR&D Investment O&S Disposal
Model & Tools
ACE‐IT X X X X X
SEER‐SEM/SEER‐H X X X
PRICE S&H X X X X
Crystal Ball X
COCOMO II X X X X
Custom Cost Spreadsheet X X X X X
Data
Analogous Programs X X X X X
Current Contracts X X X X
Engineering Estimates X X X X
Vendor Estimates X X X X
Program Office Est. X X X X X
Gov't Planning Factors X X X X X
Figure 5 – Summary of Common Cost Estimating Tools and Application
ii. Measures of Effectiveness. MOEs should clearly answer the question, “What does this investment provide the customer, public, or organization?” It is important to understand how benefits will be measured to ensure that appropriate data and information is collected and folded into reasonable measures that support CBM+ metrics and can be tied to time‐phased changes in the system being evaluated. MOEs can be defined as an advantage, profit, or gain attained. They are commonly thought of as an investment return and should describe what the investment enables an agency to accomplish and how the mission is enhanced. Focusing on improved business outcomes rather than the technology is one of the best ways to ensure the expenditure of any resource furthers the agency’s mission. A general list of potential MOEs is provided below for use in tailoring your specific BCA. A more detailed breakdown of potential benefits and possible measures is provided in Appendix E – CBM+ Measures of Effectiveness.
1. Maintenance
a. Platform
b. Life Cycle Management
c. Operational/Unit/Squadron/Battalion/Fleet
2. System Reliability
3. Number of No Evidence of Failures (NEOF)
4. Accuracy of failure prediction
5. Equipment mean downtime (logistics responsiveness)
6. Effectiveness of platform/system condition assessment
7. Mission reliability
a. Mission abort rate
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b. Combat power/platform/system availability
8. Safety
a. Number of avoided mishaps or maintenance risks
9. System design improvements
10. Maintenance facilities usage (all levels)
11. Troubleshooting and repair action
a. Accuracy and timeliness
12. Mean down time
13. Logistics decision process(es)
a. Supply chain impacts
b. Asset accountability and inventory control
c. Spare parts management
d. Warehouse management
14. Total Ownership Cost (TOC)
a. $ per unit usage
b. Availability
c. Logistics Footprint
d. Maintenance
IV. Return on Investment (ROI) The challenge of evaluating ROI, noted in the February 1999 Federal CIO Council Capital Planning and Information Technology (IT) Investment Committee report, is “it must be a standard, repeatable process, while containing a significant degree of flexibility. The process of assessing the total value of an investment informs decision‐making, but this task can be difficult to perform without a clear agreement of the definition of terms, or paths to follow”. This is particularly true for CBM+ due to the number of factors involved in defining the CBM+ capabilities, interfaces, and MOEs to arrive at a reasonable projection for investment costs, benefits, and a realistic ROI. Figure 6 illustrates three approaches to present the impact that incremental CBM+ improvements may have on a system over the system’s life cycle. The series of charts shown in Figures 6A‐6C are examples that demonstrate a benefit/dollar over time, an investment and TOC over time and the cumulative benefit over a system’s life cycle as incremental CBM+ capabilities are implemented. Figure 6A depicts an incremental CBM+ strategy and the cumulative benefits that would be realized with each increment. In this case, CBM+ capabilities are built from increment 0, basic sensor capability through increment 5 which integrates Portable Maintenance Aid (PMA); Item Unique Identification (IUID); Health Management, Decision Support (DS) with the Logistics and Command and Control Enterprises. If your existing CBM+ strategy is based on a robust or full CBM+ capability, i.e., Increment 4 or Increment 5, the number and scope of increments may be significantly different. Incremental improvements in those cases
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maybe driven either by CBM+ technology upgrades, external system capabilities or interfaces, new data requirements or analytical/decision support tools. The actual return on investment for the CBM+ investment when leveraging external capabilities may produce a significantly greater ROI.
Figure 6A
Figure 6B
$‐
$100
$200
$300
$400
$500
$600
$700
0 2‐5 6‐10 11‐15 16‐20 21‐25 26‐30 31‐35
Cost (in millions)
Time (in years)
Incremental Investment and TOC Over Time
Total Ownership Cost
Investment
Assumes a 10‐30 % TOC savings
Example Data
Figure 6C
Figure 6 – Notional CBM+ Investment and ROI Chart Examples Figure 6B depicts “notional” investment and the total benefits associated with CBM+. Figure 6C presents a summary of a projected phased/incremental investment strategy and the impact on TOC assuming a 10‐30 percent TOC savings is achieved over the
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phasing periods. Recognizing these will vary, this example provides one approach to represent incremental ROI/benefits.
V. Risk Assessment
Conduct risk analysis in accordance with The DoD Acquisition Risk Management Guide. Your CBM+ BCA risk analysis should include any areas or processes that may significantly affect your program and provide an assessment of their likelihood and potential impact. For each alternative, identify risks that could adversely affect it, and assess the possibility that the initiative can be successful; specify a risk‐reduction strategy for each risk; and identify key parameters and conditions that impact the investment decision. Present potential contingent actions that could mitigate the uncertainty. Identify how such uncertainties impact the analysis and investment decision.
VI. Comparison and Sensitivity Analysis Compare the alternatives and rank according to net present value, risk, ROI, or primary measures/factors such as risks and areas of uncertainty, technical maturity, level of integration risk, and funding. A sensitivity analysis can answer “What if the assumptions change?” It involves evaluating the variability of an alternative’s cost, benefit, and risk with respect to a change in specific factors. The objective is to determine which factors have the greatest impact (positive or negative) on the evaluation of the alternative.
VII. Conclusions Conclusions should state results in positive terms, focusing on the most convincing elements of your analysis that support your recommendations. Provide a ranking of alternatives based on the critical MOEs.
a. Conclusions should state your case succinctly, but completely, and draw upon supporting evidence and analysis from the previous sections. Organize conclusions around ROI, TOC, critical MOEs, combat power, and, to the maximum extent possible, CBM+ business needs.
b. Conclusions should demonstrate that you did a thorough job of collecting data, applied the proper methods to assess quantitative criteria, properly assessed risks and mitigation strategies, and correctly considered subjective or qualitative criteria—all of which clearly lead to the best‐value alternative.
c. Clarify and explain any surprising or unexpected results—anything from the analysis that could be misinterpreted. In other words, be sure to tie up any “loose ends” from previous BCA sections.
VIII. Recommendations Recommendations should leave no doubt in the reader’s mind that the CBM+ BCA was conducted objectively and based on unbiased and supportable conclusions. They should provide the best‐value recommended alternative among all feasible alternatives that were evaluated based on:
a. ROI
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b. TOC
c. Criticality to mission performance and readiness – combat power
d. Fulfillment of user's requests and objectives – MOEs
e. Support of DoD's strategic objectives
Provide recommended implementation approach to include metrics to measure initiative's progress, risks of implementing the recommended alternative, and recommended risk‐reduction strategies. CBM+ BCA Extracts. Appendix G – CBM+ BCA Reference Extracts is a compilation of extracts from various CBM+ BCAs that may be of value in planning, conducting, and reporting your CBM+ BCA.
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Appendix A – CBM+ Scoping Questions
As you define your CBM+ BCA, below are some general questions may relate to your CBM+ initiative. Answers to these questions are provided as information, an approach to support CBM+ implementation, and used to ensure your CBM+ BCA is adequately defined the scoped.
1. What is the projected impact on system/component level replacement frequency? A
CBM+ capability can provide the source data and analytical capability to determine
projected Remaining Useful Life (RUL), repair/replace decisions, maintenance task
frequency, etc. In defining the scope of the BCA ensure that any Reliability Centered
Maintenance (RCM) and diagnostic/trending data is used to define assumptions and
establish a system/component maintenance/replacement MOEs baseline from which the
overall CBM+ capability cost and benefit can be assessed.
2. Are there any contract alternatives (strategies) that will impact cost and schedule?
Ensure that any known or pending contracts that may impact implementing a CBM+
capability or that may benefit from a CBM+ capability are considered when defining the
scope of the CBM+ BCA. The impact on and from related CBM+ contracts should be
addressed in the risk assessment and sensitivity analysis portion of the CBM+ BCA.
3. What cost, schedule, and performance risk is projected based on proposed technology
for procurement, implementation, and sustainment? The CBM+ BCA should provide a
conclusion and recommendation regarding the level of technology maturity and risk
associated with the technology, including a sensitivity analysis regarding cost, schedule,
and performance.
4. What maintenance tasks or functions can be eliminated or reduced? The CBM+ BCA
should identify potential functions, tasks, or systems/components (both hardware and
software) that will be impacted by a CBM+. The level of detail that the CBM+ BCA can
generate will be based on the existing system, whether an RCM analysis has been done,
and what level of maintenance data is available. To the maximum extent possible
identify the proposed capability in terms of the CBM+ functionality areas of fault
detection, isolation, prediction, reporting, assessment, analysis, decision‐support
execution, and recovery, both on and off‐board.
5. How can data analysis and decision making be automated to reduce support costs?
Ensure that your specific logistic or maintenance process(es) which will utilize an
analytical CBM+ tools/capabilities, such as trending, diagnostics and/or prognostics, are
defined and that any potential CBM+ tasks, functions, and measures of effectives/metrics
that will be affected by those tools are understood.
6. What data needs to be collected to measure the costs/benefits of the CBM+? Early
Planning for the data collection will be necessary and should examine each element and
metric as to the source of data and what factors will bear on its accuracy. While
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collection of all elements is beneficial, those response elements that are discriminators
should be the focus of the CBM+ metrics planning approach. This is best accomplished by
engaging the User community in that discussion as early as possible in the acquisition
life cycle.
7. What are the data sources and limitations for the data that needs to be collected? The
authoritative source for each data element needs to be established and a determination
of whether the data is available should be established early in the CBM+ BCA planning
process.
8. Does the CBM+ initiative improve our ability (schedule/cost/technical) to
modify/improve current systems or design new systems? Identify any “system”
specific capability that the proposed CBM+ capability will help improve for the existing
system or for projected future increments. Identify specific incremental capabilities and
external systems interfaces that the CBM+ enhances, such as connectivity to near real
time/real time weapon system health.
9. What is the TOC impact? If you are conducting a CBM+ BCA with a primarily focus on
reducing TOC, ensure that you identify the specific elements of TOC within the CBM+ BCA
assumptions and MOEs. Also, properly define any analysis factors for the risk and
sensitivity analysis to ensure conclusions and recommendations are fairly and
comprehensively reached.
10. What is the projected ROI? Ensure that you define ROI as well as an accurate estimate
of the exiting sunk cost of your existing CBM+ capability. Consider the overall life cycle of
your system to properly scope the proposed CBM+ capability and define any incremental
increases planned over the system’s life cycle. Also recognize that other interfacing or
connected systems may make a significant ROI contribution greater depending on the
application, access, and use of CBM+ data.
11. What is the impact on the following areas? A CBM+ capability can provide the source
data and analytical capability to determine projected RUL, repair/replace decisions,
maintenance task frequency, etc. In defining the scope of the BCA ensure that any RCM
and diagnostic/trending data is used to define assumptions and establish a
system/component maintenance/replacement MOEs baseline from which the overall
CBM+ capability cost and benefit can be assessed. For each of the following areas
identify specific MOEs and metrics that are appropriate to the proposed CBM+ capability:
Maintenance Planning; Manpower and Personnel; Supply Support; Support Equipment;
Computer Resources Support; Facilities; Packaging, Handling, Storage, and
Transportation; Design Interface; and Disposal.
12. What is the impact on total life cycle cost, including disposal? The CBM+ BCA cost
element structure should ensure that the desired costs and levels of detail are defined
and analyzed to support the proposed CBM+ capability. Cost drivers should be clearly
OSD CBM+ BCA Information Paper‐ October 2010
18
defined and will vary depending on the CBM+ capability. Hardware and software costs
are primary elements regardless of the life cycle phase and will vary in scope depending
on the CBM+ capability being considered (e.g., sensors, diagnostics, prognostics, etc.) .
Appendices B and C of this information paper provide a suggested cost element
structure and definitions, as well as related references for use in defining your cost
element structure.
13. How will fuel conservation be affected? If the primary CBM+ capability is focused on
energy conservation or fuel management, your CBM+ capability should be evaluated
considering areas such as: fuel sensors/monitoring; real time fuel status; accuracy of
fuel data; data transfer; fuel supply management; and system interfaces. The CBM+
BCA should identify the potential change to fuel usage and fuel management at all
levels of the operational and logistics chain. Also consider possible operational benefits
for improved fuel management, distribution, manning impacts, and system
performance Impacts.
14. What is the software maintenance strategy and projected software sustainment
cost? Identify your proposed software maintenance strategy and planned refresh
frequency. Identify any existing sunk cost in terms of existing 24/7 support and cost of
facilities and server infrastructure required to maintain the 24/7 capability. Ensure
recurring and non recurring costs are adequately defined within the cost element
structure.
15. Are there incremental performance levels? Identify the planned CBM+ capability
acquisition strategy and define how it will fit with the acquisition strategy of weapon
system it supports. Define the CBM+ increments as clearly as possible and ensure
boundaries and interfaces with existing logistics, Command and Control, and/or
weapons systems are adequately described in relationship to the CBM+ MOEs and
metrics.
16. What changes will be required for operator and maintenance personnel? And
systems? Identify known impacts to the CBM+ capability, and its parent system, to
ensure that the appropriate qualitative as well as quantitative MOEs are included.
These should include defined impacts to the system’s operation and maintenance,
policy, changes to tactics, techniques and procedures and personnel.
17. How will the repair/replace decision be affected? When the BCA is focused on a
specific system/sub‐system or component, ensure that the scope, cost elements, and
MOEs are tailored accordingly. Utilize existing RCM, cost and historical data, projected
RUL estimates, any phased CBM+ capability increments, and planned system/sub‐
system or component enhancements, wherever possible.
OSD CBM+ BCA Information Paper‐ October 2010
19
18. Will the system/equipment modernization plan be affected and if so how? Identify
those system/sub‐system and/or components where the projected CBM+ capability will
have a direct or indirect affect on a planned modernization improvement.
19. How will the CBM+ capability impact integration with other DoD systems? The CBM+
BCA should identify the specific systems for which the CBM+ capability will have a direct
interface or integration requirement. These areas should be clearly defined in the
assumptions and include the type of interface (hardware or software), timing for the
connection and all related investment and sunk costs associated with the integration.
In cases where an interfacing system has been fielded, ensure that the investment costs
are adequately addressed in assumptions to either include them in the analysis or if
they are unknown, note that they are not included.
20. How will the CBM+ capability impact service life margins? In cases where the primary
purpose of the CBM+ BCA is to determine the effect on a weapon system’s service life,
ensure that the system is properly defined and all RCM and historical data/information
(e.g., Performance and failure data from Visibility and Management of Operating and
Support Costs (VAMOSC). VAMOSC is utilized to define baseline MOEs and related
costs.
21. What is the impact on Maintenance Down Time (MDT)? To adequately assess the
impact of MDT, ensure the MDT of the existing system is defined, as well as the primary
MDT drivers (e.g., Mean Time To Repair (MTTR), logistics downtime, etc.). The primary
drivers should be key MOEs and analyzed in the sensitivity analysis.
22. How will this CBM+ system/sub‐system affect operator usability? Identify known
impacts to the CBM+ capability, and its parent system, to ensure that the appropriate
qualitative as well as quantitative MOEs are included. These should include defined
impacts to the system’s operation and maintenance, policy, changes to tactics,
techniques and procedures and personnel.
23. How will platform health monitoring affect system performance? In cases where the
primary purpose of the CBM+ BCA is to determine the effect of a health monitoring
system, ensure that the system and mission performance MOEs, metrics and investment
costs are adequately defined. To the extent possible utilized available historical
data/information (e.g., Operational Availability, Mean Down Time, Material
Availability, etc.). Select the factors that can be defined, measured, and evaluated
within your CBM+ BCA framework to ensure conclusions and recommendations are
based on a fair comparison and sensitivity analysis.
24. Does the system provide any increased prognostic/diagnostic capability? Identify
MOEs and metrics (related to failure prediction, RUL estimates, spare part
management, warehouse management, etc.) that can be assessed in terms of
timeliness, accuracy and relevance of prognostic and diagnostic analytical tools. Also,
OSD CBM+ BCA Information Paper‐ October 2010
20
consider any risks associated with source data, data transfer, and systems processing
data, as well as with the analytical tools themselves.
25. What affect does the CBM+ capability have available combat power, system readiness
and availability? The CBM+ BCA should clearly define combat power, operational
availability, and material availability for the weapon system which the CBM+ capability
is being proposed and also address any unknowns or areas that could not be addressed
in quantitative terms. Assumptions should include a defined set of mission reliability
MOEs and explain how the unknown areas will be treated in the analysis. The CBM+
BCA conclusions and recommendations should address the quantitative and qualitative
costs and benefits as well as risks associated with expected unknown areas which have
not been quantified.
26. How will this initiative improve or enhance system and operator safety? Identify
specific safety measure of effectiveness and metrics that are relevant to your system.
27. How will your overall supply chain be impacted by the CBM+ Initiative? Identify the
supply system process(es) that may be affected and specific MOEs/metrics that can be
used for the analysis. Utilize existing logistics and historical data/information (e.g.,
failure data from VAMOSC) is utilized to define baseline MOEs and related costs.
28. Will CBM+ change the way you buy and provision parts? Identify the purchasing
process (es) that may be affected and specific MOEs/metrics that can be used for the
analysis. Utilize existing RCM and historical data/information (e.g., failure data from
VAMOSC) to define baseline MOEs and related costs.
29. Can any service, DoD, Defense Logistics Agency (DLA), other infrastructure be
reduced as a result of the proposed CBM+ initiative? Identify processes, functions and
staffing related to the existing and proposed CBM+ capability and utilize any RCM,
maintenance or logistics analyses that maybe available as a source to define an existing
system baseline. Define specific MOEs (e.g., maintenance tasks, warehousing functions,
inventory management, etc.) that can be reasonably analyzed.
30. How will the various COAs or alternatives be executed (i.e., acquisition strategy) and
what is the associated cost/risk of each course of action? Ensure that the ability to
execute and implement alternatives have been addressed in the risk assessment and
sensitivity analysis. Identify and define implementation related factors in the
assumptions.
31. What maintenance and acquisition processes will be affected and how will they be
impacted in terms of data collection, transmission, and manpower costs associated
with analysis and decision making? Identify and define functions, tasks, and related
activities for maintenance, acquisition, and logistics processes (e.g., Total Life Cycle
Systems Management, PBL, Focused Logistics, Joint Capabilities Integration, and
OSD CBM+ BCA Information Paper‐ October 2010
21
Development System, Functional Needs Analysis, Functional Areas Analysis, etc.) that is
affected by or provides information about the proposed CBM+ capability.
32. How will readiness, availability, ready for tasking, down time (parts or maintenance),
and/or unscheduled down time be affected? Identify specific MOEs and metrics that
are critical to support the customer expectations. Ensure that definitions are provided
within assumptions and appropriate measures identified for analysis. Minimize the
number of metrics being evaluated to ensure reasonable amount of effort is required to
obtain and analyze data to arrive at fair and reasonable conclusions and
recommendations. Impact should be assessed using the primary CBM+ metrics ‐
Operational availability, material readiness, total ownership cost, and mean downtime.
33. What areas will this CBM+ initiative result in cost avoidance? Consider measures that
may offer direct or indirect cost avoidance such as: no evidence of failure, avoided
mishaps, reduction in spares, reduced maintenance, warehouse storage/space.
34. Will use of analytic techniques to predict failure or reduced performance levels affect
scheduled maintenance and major replacement strategies? Identify specific analytical
tools, their projected accuracy, and their specific implementation (incremental). Utilize
existing analyses, RCM studies, and historical data/information (e.g., failure data from
VAMOSC) to establish a baseline for the analysis.
35. How does this initiative improve the overall awareness of equipment condition at the
tactical and strategic levels? Identify and define any potential systems interfaces, data
exchange, decision processes, planned integration, and customer expectation in the key
assumptions. Address incremental capability improvements that may impact the CBM+
ROI as new increments become available or are integrated into the overall maintenance
and logistics processes. Ensure that relevant CBM+ functionality areas (fault detection,
isolation, prediction, reporting, assessment, analysis, decision‐support execution, and
recovery, both on and off‐board) at the operational/ tactical command and strategic
levels are assessed and addressed in the conclusions and recommendations.
36. How does this initiative increase the accuracy in failure prediction and situational
awareness? Identify specific system/sub‐system/component and existing performance
levels (failure rate, etc.) that the CBM+ capability is targeted to support. Define and
analyze related the CBM+ functionality areas of fault detection, isolation, prediction,
reporting, assessment, analysis, decision‐support execution and recovery, both on and
off‐board.
OSD CBM+ BCA Information Paper‐ October 2010
22
Appendix B – CBM+ BCA Outline
Conditional Based Maintenance Plus (CBM+) Business Case Analysis (BCA) Outline
CBM+ BCA Information Paper – October 2010
I. Executive Summary
II. Boundaries and Assumptions
a. Goals and Vision
b. Context and Perspective
c. CBM+ Metrics
d. Key Assumptions
e. Cost Structure
f. External CBM+ Enablers
g. Key Issues
h. Evaluation Criteria/Factors
III. Alternatives
a. As‐Is Configuration/Condition
b. Description of Alternative Courses of Action
c. Projected Cost Elements and Measures of Effectiveness
i. Cost Elements
ii. Measures of Effectiveness
IV. Return on Investment
V. Risk Assessment
VI. Comparison and Sensitivity Analysis
VII. Conclusions
VIII. Recommendations
OSD CBM+ BCA Information Paper‐ October 2010
23
Appendix C – CBM+ Related Definitions/Descriptions
Copy of CBM + BCA Definitions -Workshee
Eight‐page worksheet attached to Appendix C in printed copy.
CB
M+
BC
A IN
FO
RM
AT
ION
PA
PE
R -
DE
FIN
ITIO
NS
/DE
SC
RIP
TIO
NS
Oct
ob
er 2
010
Ter
mD
efin
itio
n/D
escr
ipti
on
R
efer
ence
B
usin
ess
Cas
e A
naly
sis
(BC
A)
A b
usin
ess
case
ana
lysi
s (B
CA
) is
a d
ecis
ion
supp
ort d
ocum
ent t
hat i
dent
ifies
alte
rnat
ives
and
pre
sent
s co
nvin
cing
bus
ines
s, e
cono
mic
, ris
k,
and
tech
nica
l arg
umen
ts fo
r se
lect
ion
and
impl
emen
tatio
n to
ach
ieve
sta
ted
orga
niza
tiona
l obj
ectiv
es/im
pera
tives
. A B
CA
doe
s no
t rep
lace
th
e ju
dgm
ent o
f a d
ecis
ion
mak
er, b
ut r
athe
r pr
ovid
es a
n an
alyt
ic a
nd u
nifo
rm fo
unda
tion
upon
whi
ch s
ound
inve
stm
ent d
ecis
ions
can
be
mad
e. T
he s
ubje
ct o
f a B
CA
may
incl
ude
any
sign
ifica
nt in
vest
men
t dec
isio
n th
at le
ader
ship
is c
onte
mpl
atin
g. F
or e
xam
ple,
a B
CA
may
be
used
to s
ubst
antia
te th
e ca
se to
inve
st in
a n
ew w
eapo
ns s
yste
m; t
rans
form
bus
ines
s op
erat
ions
; dev
elop
a w
eb-b
ased
trai
ning
cu
rric
ulum
; or
retir
e an
ass
et. I
n ge
nera
l, B
CA
s ar
e de
sign
ed to
ans
wer
the
follo
win
g qu
estio
n: W
hat a
re th
e lik
ely
finan
cial
and
oth
er b
usin
ess
(no
n-fin
anci
al)
cons
eque
nces
if w
e ex
ecut
e th
is in
vest
men
t dec
isio
n or
this
act
ion?
Air
For
ce M
anua
l 65-
510,
Bus
ines
s C
ase
Ana
lysi
s P
roce
dure
s, 2
2 S
epte
mbe
r 20
08; A
FM
C P
BL
BC
A C
heck
list 3
1 M
ay 2
007
Cos
t Ben
efit
Ana
lysi
s (C
BA
) A
ll C
ost B
enef
it A
naly
sis
(CB
A)
prov
ide
deci
sion
mak
ers
with
fact
s, d
ata,
and
ana
lysi
s re
quire
d to
mak
e an
info
rmed
dec
isio
n. In
its
mos
t ba
sic
form
, the
CB
A is
a to
ol to
sup
port
res
ourc
e in
form
ed d
ecis
ion
mak
ing.
The
re is
no
pres
crib
ed le
ngth
to a
CB
A. A
ll th
at is
req
uire
d is
that
it
fully
sup
port
s th
e re
com
men
datio
n. T
here
fore
, qua
lity
is g
enui
nely
mor
e im
port
ant t
han
quan
tity.
U.S
. Arm
y C
ost B
enef
it A
naly
sis
Gui
de d
ated
12
Janu
ary
2010
CB
M+
Con
ditio
n B
ased
Mai
nten
ance
Plu
s (C
BM
+)
is th
e ap
plic
atio
n an
d in
tegr
atio
n of
app
ropr
iate
pro
cess
es, t
echn
olog
ies,
and
kno
wle
dge-
base
d ca
pabi
litie
s to
impr
ove
the
relia
bilit
y an
d m
aint
enan
ce e
ffect
iven
ess
of D
oD s
yste
ms
and
com
pone
nts.
At i
ts c
ore,
CB
M+
is m
aint
enan
ce
perf
orm
ed b
ased
on
evid
ence
of n
eed
prov
ided
by
Rel
iabi
lity
Cen
tere
d M
aint
enan
ce (
RC
M)
anal
ysis
and
oth
er e
nabl
ing
proc
esse
s an
d te
chno
logi
es. C
BM
+ u
ses
a sy
stem
s en
gine
erin
g ap
proa
ch to
col
lect
dat
a, e
nabl
e an
alys
is, a
nd s
uppo
rt th
e de
cisi
on-m
akin
g pr
oces
ses
for
syst
em a
cqui
sitio
n, s
usta
inm
ent,
and
oper
atio
ns.
DoD
I 415
1.22
, Con
ditio
n B
ased
Mai
nten
ance
Plu
s (C
BM
+)
for
Mat
eria
l Mai
nten
ance
dat
ed D
ecem
ber
2, 2
007
CB
M+
Ope
ratin
g M
etric
s A
t the
hig
hest
leve
l, th
ere
are
four
mea
sura
ble
obje
ctiv
es o
f a m
aint
enan
ce p
rogr
am:
- M
ater
iel a
vaila
bilit
y—m
axim
izin
g re
adin
ess
and
avai
labi
lity
of w
eapo
n sy
stem
s an
d eq
uipm
ent
- M
ater
ial r
elia
bilit
y—im
prov
ing
relia
bilit
y of
wea
pon
syst
ems,
equ
ipm
ent,
and
com
pone
nts
- O
wne
rshi
p co
sts—
redu
cing
life
-cyc
le o
wne
rshi
p co
sts
- M
ean
dow
n tim
e—re
duci
ng m
ean
dow
n tim
e.
DoD
Con
ditio
n B
ased
Mai
nten
ance
Plu
s D
oD G
uide
book
, May
200
8
Eco
nom
ic A
naly
sis
(EA
)E
cono
mic
ana
lysi
s is
a s
yste
mat
ic a
ppro
ach
to th
e pr
oble
m o
f cho
osin
g th
e be
st m
etho
d of
allo
catin
g sc
arce
res
ourc
es to
ach
ieve
a g
iven
ob
ject
ive.
A s
ound
eco
nom
ic a
naly
sis
reco
gniz
es th
at th
ere
are
alte
rnat
ive
way
s to
mee
t a g
iven
obj
ectiv
e an
d th
at e
ach
alte
rna
tive
requ
ires
cert
ain
reso
urce
s an
d pr
oduc
es c
erta
in r
esul
ts
DoD
I 704
1.3
date
d 7
Nov
embe
r 19
95
Tim
e B
ased
Met
rics
DoD
Rel
iabi
lity,
Mai
ntai
nabi
lity,
and
Cos
t Rat
iona
le R
epor
t Man
ual
date
d 1
June
200
9
Mat
eria
l ava
ilabi
lity
Fra
ctio
n of
tota
l sys
tem
s av
aila
ble
for
oper
atio
nal u
se o
r, a
s de
fined
in S
ectio
ns 3
.1.2
.2 a
nd 3
.1.2
.3 o
f R
AM
-C
Cos
t Rat
iona
le R
epor
t, pe
rcen
tage
of t
ime
a gi
ven
syst
em is
ava
ilabl
e fo
r op
erat
iona
l use
. Not
e th
e R
AM
-C m
anua
l doe
s no
t add
ress
mat
eria
l ava
ilabi
lity
for
netw
orki
ng o
r in
form
atio
n te
chno
logy
sys
tem
s.
DoD
Rel
iabi
lity,
Mai
ntai
nabi
lity,
and
Cos
t Rat
iona
le R
epor
t Man
ual
date
d 1
June
200
9
Mat
eria
l rel
iabi
lity
The
pro
babi
lity
that
the
syst
em w
ill p
erfo
rm it
s in
tend
ed fu
nctio
n ov
er a
spe
cifie
d tim
e pe
riod
DoD
Rel
iabi
lity,
Mai
ntai
nabi
lity,
and
Cos
t Rat
iona
le R
epor
t Man
ual
date
d 1
June
200
9
Ow
ners
hip
Cos
tsO
wne
r co
st a
s de
fined
in p
ara
3.2.
4.3
of th
e R
AM
-C
Cos
t Rat
iona
le R
epor
t 2.0
Uni
t Ope
ratio
ns: 2
.1.1
(on
ly)
Ene
rgy
(fue
l, pe
trol
eum
, oil,
lu
bric
ants
(P
OL)
, ele
ctric
ity)
Not
e: T
he fu
lly b
urde
ned
cost
of f
uel i
s to
be
incl
uded
afte
r th
e on
goin
g pi
lot p
rogr
ams
have
be
en c
ompl
eted
and
po
licy
has
been
form
aliz
ed. 3
.0 M
aint
enan
ce (
all e
lem
ents
) 4
.0 S
usta
inin
g S
uppo
rt (
all e
lem
ents
exc
ept 4
.1 S
yste
m S
peci
fic T
rain
ing)
5.0
C
ontin
uing
Sys
tem
Impr
ovem
ents
(al
l ele
men
ts).
DoD
Rel
iabi
lity,
Mai
ntai
nabi
lity,
and
Cos
t Rat
iona
le R
epor
t Man
ual
date
d 1
June
200
9; C
ost A
naly
sis
Impr
ovem
ent G
roup
(C
AIG
) O
pera
ting
and
Sup
port
Cos
t-E
stim
atin
g G
uide
(O
ctob
er 2
007)
:
Mea
n D
own
Tim
eT
he a
vera
ge d
ownt
ime
for
mai
nten
ance
act
ions
(in
clud
es M
TT
R, L
DT
, and
AD
T)
DoD
Rel
iabi
lity,
Mai
ntai
nabi
lity,
and
Cos
t Rat
iona
le R
epor
t Man
ual
date
d 1
June
200
9R
OI
A p
erfo
rman
ce m
easu
re u
sed
to e
valu
ate
the
effic
ienc
y of
an
inve
stm
ent o
r to
com
pare
the
effic
ienc
y of
a n
umbe
r of
diff
eren
t in
vest
men
ts. T
o ca
lcul
ate
RO
I, th
e be
nefit
(re
turn
) of
an
inve
stm
ent i
s di
vide
d by
the
cost
of t
he in
vest
men
t; th
e re
sult
is e
xpre
ssed
as
a pe
rcen
tage
or
a ra
tio.
Dr
Edw
ard
Deg
nan,
AF
AM
S B
rief d
ated
20
Feb
200
9;
Inve
stop
edia
.com
Pag
e 1
CB
M+
BC
A IN
FO
RM
AT
ION
PA
PE
R -
DE
FIN
ITIO
NS
/DE
SC
RIP
TIO
NS
Oct
ob
er 2
010
Ter
mD
efin
itio
n/D
escr
ipti
on
R
efer
ence
Co
st E
lem
ents
Res
earc
h &
Dev
elo
pm
ent
Con
sist
s of
dev
elop
men
t cos
ts in
curr
ed fr
om th
e be
ginn
ing
of th
e co
ncep
tual
pha
se th
roug
h th
e en
d of
the
syst
em d
evel
opm
ent a
nd
dem
onst
ratio
n ph
ase,
and
pot
entia
lly in
to lo
w-r
ate
initi
al p
rodu
ctio
n. T
ypic
ally
incl
udes
cos
ts o
f con
cept
ref
inem
ent t
rade
stu
dies
and
ad
vanc
ed te
chno
logy
dev
elop
men
t; sy
stem
des
ign
and
inte
grat
ion;
dev
elop
men
t, fa
bric
atio
n, a
ssem
bly,
and
test
of h
ardw
are
and
softw
are
for
prot
otyp
es a
nd/o
r en
gine
erin
g de
velo
pmen
t mod
els;
sys
tem
test
and
eva
luat
ion;
sys
tem
eng
inee
ring
and
prog
ram
man
agem
ent;
pecu
liar
and
com
mon
sup
port
equ
ipm
ent,
pecu
liar
trai
ning
equ
ipm
ent/i
nitia
l tra
inin
g, te
chni
cal p
ublic
atio
ns/d
ata,
and
initi
al s
pare
s an
d re
pai
r pa
rts
asso
ciat
ed w
ith p
roto
type
s an
d/or
eng
inee
ring
deve
lopm
ent m
odel
s.
OS
D O
&S
Cos
t Est
imat
ing
Gui
de (
Oct
200
7); D
efen
se A
cqui
sitio
n G
uide
book
-D
AU
Des
ign
Con
sist
s of
des
ign
cost
s fo
r sp
ecifi
c C
BM
+ te
chno
logi
es.
Not
e: T
o m
aint
ain
cons
iste
ncy,
CB
M+
desi
gn a
nd d
evel
opm
ent s
houl
d be
bas
ed o
n a
broa
d ar
chite
ctur
e an
d an
ent
erpr
ise
fram
ewor
k th
at is
ope
n to
mod
ifica
tion
and
can
be e
asily
adj
uste
d. C
BM
+ d
esig
ns a
t th
is p
hase
of t
he
life
cycl
e sh
ould
con
side
r in
tegr
ated
, pre
dict
ive,
pro
gnos
tics,
and
dia
gnos
tics
(CB
M +
) te
chno
logi
es a
nd m
aint
enan
ce a
ppro
ache
s th
at
min
imiz
e un
sche
dule
d re
pairs
.
OS
D O
&S
Cos
t Est
imat
ing
Gui
de (
Oct
200
7); D
efen
se A
cqui
sitio
n G
uide
book
-D
AU
Dev
elop
men
t (in
clud
e bo
th h
ardw
are
&
softw
are)
Con
sist
s of
cos
ts a
ssoc
iate
d w
ith d
evel
opm
ent o
f a c
apab
ility
to in
clud
e ha
rdw
are,
sof
twar
e an
d in
tegr
atio
n co
sts.
Ref
er to
DA
U te
chno
logy
an
d m
anuf
actu
ring
read
ines
s de
finiti
ons
to d
eter
min
e th
e te
chno
logy
rea
dine
ss le
vel a
nd s
cope
of c
osts
for
desi
gn.
Util
ize
any
exis
ting
Life
C
ycle
Cos
t Est
imat
es to
ass
ist i
n de
finin
g de
velo
pmen
t cos
ts.
OS
D O
&S
Cos
t Est
imat
ing
Gui
de (
Oct
200
7); D
efen
se A
cqui
sitio
n G
uide
book
-D
AU
Pro
toty
peC
ost s
houl
d in
clud
e th
e C
BM
+ p
roto
type
tech
nolo
gies
that
pro
vide
the
CB
M+ in
itiat
ives
.O
SD
O&
S C
ost E
stim
atin
g G
uide
(O
ct 2
007)
; Def
ense
Acq
uisi
tion
Gui
debo
ok -
DA
U
Tes
ting
& V
alid
atio
nIn
clud
es c
osts
ass
ocia
ted
with
test
ing
and
valid
atio
n of
bot
h ha
rdw
are
and
softw
are
requ
ired
to fi
eld
the
prop
osed
CB
M+ c
apab
ility
. O
SD
O&
S C
ost E
stim
atin
g G
uide
(O
ct 2
007)
; Def
ense
Acq
uisi
tion
Gui
debo
ok -
DA
U
Dat
a M
anag
emen
tD
ata
man
agem
ent c
onsi
sts
of a
cqui
ring
data
(e.
g., t
hrou
gh s
enso
rs o
r ot
her
acqu
isiti
on te
chni
ques
), m
anip
ulat
ing
dat
a in
to m
eani
ngfu
l for
m
(e.g
., co
nver
ting
anal
og to
dig
ital d
ata)
, sto
ring
data
(el
ectr
onic
ally
in d
igita
l for
m),
tran
smitt
ing
data
(th
roug
h el
ectr
onic
mea
ns),
acc
essi
ng
data
as
a ba
sis
for
anal
ysis
, and
pro
vidi
ng d
ata
(info
rmat
ion)
to d
ecis
ion
mak
ers.
CB
M G
uide
book
May
, 200
8
CB
M+
Ser
vice
s A
pplic
atio
nsC
onsi
sts
of th
e co
st o
f app
licat
ion
deve
lopm
ent,
licen
sing
, inf
rast
ruct
ure
(arc
hite
ctur
e, h
ardw
are,
sof
twar
e an
d da
ta m
anag
emen
t). E
nter
pris
e so
ftwar
e of
ten
incl
udes
sof
twar
e ap
plic
atio
ns s
imila
rto
thos
e fo
und
at th
e eq
uipm
ent l
evel
, but
may
incl
ude
data
rep
osito
ries
and
the
appl
icat
ions
that
use
info
rmat
ion
from
the
data
base
s ge
nera
ted
by e
quip
men
t sof
twar
e.
CB
M G
uide
book
May
, 200
8
Inve
stm
ent
Con
sist
s of
pro
duct
ion
and
depl
oym
ent c
osts
incu
rred
from
the
begi
nnin
g of
low
-rat
e in
itial
pro
duct
ion
thro
ugh
com
plet
ion
of d
eplo
ymen
t.T
ypic
ally
incl
udes
cos
ts a
ssoc
iate
d w
ith p
rodu
cing
and
dep
loyi
ng th
e pr
imar
y ha
rdw
are;
sys
tem
eng
inee
ring
and
prog
ram
man
agem
ent;
pecu
liar
and
com
mon
sup
port
equ
ipm
ent,
pecu
liar
trai
ning
equ
ipm
ent/i
nitia
l tra
inin
g, te
chni
cal p
ublic
atio
ns/d
ata,
and
initi
al s
pare
s an
d re
pair
part
s as
soci
ated
with
pro
duct
ion
asse
ts; i
nter
im c
ontr
acto
r su
ppor
t tha
t is
rega
rded
as
part
of t
he s
yste
m p
rodu
ctio
n an
d is
incl
uded
in th
e sc
ope
of th
e ac
quis
ition
pro
gram
bas
elin
e; a
nd m
ilita
ry c
onst
ruct
ion
OS
D O
&S
Cos
t Est
imat
ing
Gui
de (
Oct
200
7); D
efen
se A
cqui
sitio
n G
uide
book
-D
AU
Sys
tem
acq
uisi
tion
Con
sist
s of
cos
ts a
ssoc
iate
d w
ith th
e ac
quis
ition
of t
he C
BM
+ c
apab
ility
to in
clud
e pr
ocur
emen
t, do
cum
enta
tion
and
prog
ram
sup
port
ne
cess
ary
to fi
eld
the
capa
bilit
y. R
efer
to D
oD 5
000
and
Ser
vice
spe
cific
req
uire
men
ts fo
r ne
w a
cqui
sitio
n an
d m
oder
niza
tion
of fi
elde
d as
sets
DA
U -
DoD
500
0.2
Fac
ilitie
s an
d In
fras
truc
ture
Des
crib
e, q
uant
itativ
ely
and
qual
itativ
ely,
faci
litie
s/in
fras
truc
ture
req
uire
men
ts to
sup
port
the
capa
bilit
y. Id
entif
y an
y fu
ndin
g, e
nviro
nmen
tal,
and
spac
e al
loca
tion
cons
trai
nts.
If a
sset
s ex
ist,
desc
ribe
diffe
renc
es in
req
uire
men
ts o
r up
grad
es/a
dditi
ons
need
ed.
OS
D O
&S
Cos
t Est
imat
ing
Gui
de (
Oct
200
7); D
efen
se A
cqui
sitio
n G
uide
book
-D
AU
Sup
ply
supp
ort
Ful
ly d
escr
ibe
the
supp
ly s
uppo
rt c
osts
ass
ocia
te w
ith th
e ac
quis
ition
of C
BM
+ te
chno
logi
es .
Incl
ude
the
prov
isio
ning
, org
anic
or
Con
trac
tor
Logi
stic
s S
uppo
rt (
CLS
), T
hird
Par
ty L
ogis
tics
prov
ider
(3P
L), o
r P
erfo
rman
ce B
ased
Log
istic
s (P
BL)
type
con
trac
ts, a
nd a
ny u
se o
f int
erim
co
ntra
ctor
sup
ply
supp
ort,
test
ing
supp
ort,
etc.
OS
D O
&S
Cos
t Est
imat
ing
Gui
de (
Oct
200
7); D
efen
se A
cqui
sitio
n G
uide
book
-D
AU
Tes
t equ
ipm
ent
Iden
tify
cost
s fo
r s
uppo
rt e
quip
men
t nec
essa
ry to
sup
port
the
CB
M +
cap
abili
ty/te
chno
logy
.O
SD
O&
S C
ost E
stim
atin
g G
uide
(O
ct 2
007)
; Def
ense
Acq
uisi
tion
Gui
debo
ok -
DA
U
Pro
gnos
tics/
diag
nost
ics
serv
ices
Iden
tify
cost
s of
ser
vice
leve
l agr
eem
ents
, lic
ensi
ng a
nd s
oftw
are
deve
lopm
ent f
or n
ew a
pplic
atio
ns a
nd s
ervi
ces
as w
ell a
s fo
r ex
istin
g an
d/or
pr
oprie
tary
dia
gnos
tic/p
rogn
ostic
s so
ftwar
e/al
gorit
hms.
OS
D O
&S
Cos
t Est
imat
ing
Gui
de (
Oct
200
7); D
efen
se A
cqui
sitio
n G
uide
book
-D
AU
D
ata
War
ehou
seA
dat
a w
areh
ouse
is a
com
pute
r da
taba
se th
at c
olle
cts,
inte
grat
es, a
nd s
tore
s an
org
aniz
atio
n’s
com
pute
r da
ta w
ith th
e ai
m o
f mai
ntai
ning
an
d pr
ovid
ing
accu
rate
and
tim
ely
man
agem
ent i
nfor
mat
ion
and
supp
ortin
g da
ta a
naly
sis.
The
dat
a m
ay b
e di
strib
uted
; tha
t is,
loca
ted
at
mul
tiple
org
aniz
atio
nal a
nd lo
catio
ns.
CB
M G
uide
book
May
, 200
8
Pag
e 2
CB
M+
BC
A IN
FO
RM
AT
ION
PA
PE
R -
DE
FIN
ITIO
NS
/DE
SC
RIP
TIO
NS
Oct
ob
er 2
010
Ter
mD
efin
itio
n/D
escr
ipti
on
R
efer
ence
Co
st E
lem
ents
Tra
inin
gC
onsi
sts
of c
osts
ass
ocia
ted
with
trai
ning
mat
eria
l, so
ftwar
e ap
plic
atio
ns, f
acili
ties,
sof
twar
e in
tegr
atio
n re
quire
d to
fiel
d th
e ca
pabi
lity.
Ope
ratio
n &
Sus
tain
men
tC
onsi
sts
of s
usta
inm
ent c
osts
incu
rred
from
the
initi
al s
yste
m d
eplo
ymen
t thr
ough
the
end
of s
yste
m o
pera
tions
. Inc
lude
s al
l cos
ts o
f op
erat
ing,
mai
ntai
ning
, and
sup
port
ing
a fie
lded
sys
tem
. Spe
cific
ally
, thi
s co
nsis
ts o
f the
cos
ts (
orga
nic
and
cont
ract
or)
of p
erso
nnel
, eq
uipm
ent,
supp
lies,
sof
twar
e, a
nd s
ervi
ces
asso
ciat
ed w
ith o
pera
ting,
mod
ifyin
g, m
aint
aini
ng, s
uppl
ying
, tra
inin
g, a
nd s
uppo
rtin
g a
syst
em in
th
e D
oD in
vent
ory.
May
incl
ude
inte
rim c
ontr
acto
r su
ppor
t whe
n it
is o
utsi
de th
e sc
ope
of th
e pr
oduc
tion
prog
ram
and
the
acqu
isiti
on p
rogr
am
base
line.
O&
S c
osts
incl
ude
cost
s di
rect
ly a
nd in
dire
ctly
attr
ibut
able
to th
e sy
stem
(i.e
., co
sts
that
wou
ld n
ot o
ccur
if th
e sy
stem
did
not
exi
st),
re
gard
less
of f
undi
ng s
ourc
e or
man
agem
ent c
ontr
ol. D
irect
cos
ts r
efer
to th
e re
sour
ces
imm
edia
tely
ass
ocia
ted
with
the
syst
em o
r its
op
erat
ing
unit.
Indi
rect
cos
ts r
efer
to th
e re
sour
ces
that
pro
vide
indi
rect
sup
port
to th
e sy
stem
’s m
anpo
wer
or
faci
litie
s. F
or e
xam
ple,
the
pay
and
allo
wan
ces
(ref
lect
ed in
com
posi
te s
tand
ard
rate
s) fo
r a
unit-
leve
l mai
nten
ance
tech
nici
an w
ould
be
trea
ted
as a
dire
ct c
ost,
but t
he
(pos
sibl
y al
loca
ted)
cos
t of m
edic
al s
uppo
rt fo
r th
e sa
me
tech
nici
an w
ould
be
an in
dire
ct c
ost.
OS
D O
&S
Cos
t Est
imat
ing
Gui
de (
Oct
200
7); D
efen
se A
cqui
sitio
n G
uide
book
-D
AU
Uni
t Lev
el M
anpo
wer
The
uni
t-le
vel m
anpo
wer
ele
men
t inc
lude
s th
e co
sts
of a
ll op
erat
or, m
aint
enan
ce, a
nd o
ther
sup
port
man
pow
er a
t ope
ratin
g un
its (
or a
t m
aint
enan
ce a
nd s
uppo
rt u
nits
that
are
org
aniz
atio
nally
rel
ated
and
adj
acen
t to
the
oper
atin
g un
its).
Uni
t-le
vel m
anpo
wer
incl
ude
s ac
tive
and
rese
rve
mili
tary
, gov
ernm
ent c
ivili
an, a
nd c
ontr
acto
r m
anpo
wer
cos
ts. W
hile
the
cost
ele
men
ts in
this
cat
egor
y m
ake
the
dist
inct
ion
betw
een
oper
ator
s, m
aint
aine
rs, a
nd o
ther
uni
t-le
vel m
anpo
wer
, tha
t dis
tinct
ion
may
not
app
ly to
all
situ
atio
ns. F
or e
xam
ple,
in O
&S
co
st e
stim
ates
for
Nav
y sh
ips,
the
ship
man
pow
er is
typi
cally
est
imat
ed a
nd d
ocum
ente
d fo
r th
e en
tire
crew
as
a w
hole
, and
is n
ot b
roke
n do
wn
into
ope
rato
rs,
mai
ntai
ners
, and
oth
er s
uppo
rt.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Ope
ratio
ns M
anpo
wer
The
cos
ts o
f all
mili
tary
, civ
ilian
, and
con
trac
tor
man
pow
er r
equi
red
to o
pera
te a
sys
tem
.O
SD
OS
Cos
t Est
ima
ting
Gui
de (
Oct
. 200
7)
Uni
t-Le
vel M
aint
enan
ce M
anpo
wer
The
cos
ts o
f all
mili
tary
, civ
ilian
, and
con
trac
tor
man
pow
er th
at p
erfo
rms
unit-
leve
l lev
el m
ain
tena
nce
on a
prim
ary
syst
em, a
ssoc
iate
d su
ppor
t eq
uipm
ent,
and
unit-
leve
l tra
inin
g de
vice
s. T
his
elem
ent i
nclu
des
the
cost
s of
org
aniz
atio
nal m
aint
enan
ce m
anpo
wer
(us
ually
res
iden
t in
the
syst
em o
pera
ting
unit)
and
uni
t-le
vel i
nter
med
iate
mai
nten
ance
per
sonn
el. T
he c
osts
of i
nter
med
iate
-leve
l mai
nten
ance
per
sonn
el r
esid
ent i
n a
supp
ort o
rgan
izat
ion
that
is n
ot u
nit-
leve
l rel
ativ
e to
the
oper
atin
g un
it su
ch a
s a
Nav
y sh
ore-
base
d In
term
edia
te M
aint
enan
ce A
ctiv
ity, a
re
incl
uded
in e
lem
ent 3
.2 (
Inte
rmed
iate
Mai
nten
ance
). F
or c
ases
whe
re in
divi
dual
s m
aint
ain
mor
e th
an o
ne s
yste
m, m
anpo
wer
cos
ts s
houl
d be
al
loca
ted
on a
rel
ativ
e w
orkl
oad
basi
s.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Oth
er U
nit-
Leve
l Man
pow
erT
he c
ost o
f all
mili
tary
, civ
ilian
, and
con
trac
tor
man
pow
er th
at p
erfo
rms
adm
inis
trat
ive,
sec
urity
, lo
gist
ics,
saf
ety,
eng
inee
ring,
and
oth
er
mis
sion
sup
port
func
tions
at t
he u
nit l
evel
. The
se c
osts
incl
ude
only
the
cost
s of
man
pow
er p
ositi
ons
that
exi
st to
who
lly o
r p
redo
min
atel
y su
ppor
t the
sys
tem
who
se c
osts
are
bei
ng e
stim
ated
. For
sys
tem
s th
at d
eplo
y, th
ese
cost
s in
clud
e th
e co
sts
of m
anpo
wer
pos
ition
s th
at
rout
inel
y de
ploy
to s
uppo
rt th
e sy
stem
.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Uni
t Ope
ratio
nsU
nit O
pera
tions
incl
udes
the
unit-
leve
l con
sum
ptio
n of
ope
ratin
g m
ater
ials
suc
h as
fuel
, ele
ctric
ity, e
xpen
dabl
e s
tore
s, tr
aini
ng m
uniti
ons
and
othe
r op
erat
ing
mat
eria
ls. A
lso
incl
uded
are
any
uni
t-fu
nded
sup
port
act
iviti
es; t
rain
ing
devi
ces
or s
imul
ator
ope
ratio
ns th
at u
niqu
ely
supp
ort
an o
pera
tiona
l uni
t; te
mpo
rary
add
ition
al d
uty/
tem
pora
ry d
uty
(TA
D/T
DY
) as
soci
ated
with
the
unit’
s no
rmal
con
cept
of o
pera
tions
; and
oth
er
unit
fund
ed s
ervi
ces.
Uni
t-fu
nded
ser
vice
con
trac
ts fo
r ad
min
istr
ativ
e eq
uipm
ent a
s w
ell a
s un
it-fu
nded
equ
ipm
ent a
nd s
oftw
are
leas
es a
re
incl
uded
in th
is p
ortio
n of
the
estim
ate.
Uni
t Ope
ratin
g co
sts
prov
ided
thro
ugh
a sy
stem
sup
port
con
trac
t sho
uld
be s
epar
atel
y id
entif
ied
from
th
ose
prov
ided
org
anic
ally
.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Ope
ratin
g M
ater
ial
Ene
rgy
(Fue
l, P
etro
leum
, Oil
and
Lubr
ican
ts [P
OL]
, Ele
ctric
ity)
The
se c
osts
incl
ude
cost
of P
OL,
pro
puls
ion
fuel
, and
fuel
add
itive
s us
ed b
y sy
stem
s in
per
form
ing
thei
r no
rmal
pea
cetim
e m
issi
ons.
The
se c
osts
als
o in
clud
e th
e co
st o
f fie
ld-g
ener
ated
ele
ctric
ity a
nd c
omm
erci
al
elec
tric
ity n
eces
sary
to s
uppo
rt th
e op
erat
ion
of a
sys
tem
. T
rain
ing
Mun
ition
s an
d E
xpen
dabl
e S
tore
s T
hese
cos
ts in
clud
e th
e u
nit-
leve
l co
nsum
ptio
n of
trai
ning
mun
ition
s, r
ocke
ts, m
issi
les,
and
exp
enda
ble
stor
es in
the
cour
se o
f nor
mal
pea
cetim
e tr
aini
ng m
issi
ons.
Incl
udes
the
cost
of l
ive
and
iner
t am
mun
ition
, bom
bs, r
ocke
ts, t
rain
ing
mis
sile
s, s
onob
uoys
, and
pyr
otec
hnic
s ex
pend
ed in
trai
ning
and
non
-com
bat f
iring
s su
ch a
s fir
epow
er d
emon
stra
tions
. Thi
s ca
tego
ry a
lso
incl
udes
oth
er e
xpen
dabl
e st
ores
suc
h as
cha
ff, fl
ares
, fue
l tan
ks, t
rave
l pod
s or
oth
er
item
s th
at lo
se th
eir
iden
tity
in u
se a
nd m
ay b
e dr
oppe
d fr
om s
tock
rec
ord
acco
unts
whe
n is
sued
or
used
. Cos
t. O
ther
Ope
ratio
nal
Mat
eria
l T
his
elem
ent i
nclu
des
oper
atin
g m
ater
ial c
osts
oth
er th
an e
nerg
y, tr
aini
ng m
uniti
ons,
or
expe
ndab
le s
tore
s. T
he c
osts
iden
tifie
d m
ust b
e re
late
d to
the
syst
em w
hose
O&
S r
equi
rem
ents
are
bei
ng a
sses
sed.
Illu
stra
tive
exam
ples
incl
ude
com
pute
r su
pplie
s, p
aper
, dis
kett
es,
ribbo
ns, c
hart
s, m
aps,
and
adm
inis
trat
ive
supp
lies
used
for
hous
ekee
ping
, hea
lth a
nd s
afet
y.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Pag
e 3
CB
M+
BC
A IN
FO
RM
AT
ION
PA
PE
R -
DE
FIN
ITIO
NS
/DE
SC
RIP
TIO
NS
Oct
ob
er 2
010
Ter
mD
efin
itio
n/D
escr
ipti
on
R
efer
ence
Co
st E
lem
ents
Sup
port
Ser
vice
sT
his
incl
udes
uni
t-le
vel c
osts
for
purc
hase
d su
ppor
t ser
vice
s. T
hese
ser
vice
s m
ay v
ary
grea
tly fr
om o
ne u
nit t
o a
noth
er. T
hey
may
incl
ude
but
are
not l
imite
d to
:•
Un-
reim
burs
ed fo
od s
ervi
ces,
rat
ions
, pos
tal s
ervi
ces
(pos
tage
/box
ren
tal),
laun
dry
serv
ices
.•
Leas
e or
ren
tal o
f adm
inis
trat
ive,
com
puta
tiona
l, or
sup
port
equ
ipm
ent o
r so
ftwar
e.•
Leas
e co
sts
of s
peci
al fa
cilit
ies
or la
nd (
e.g.
, for
the
stor
age
of w
arhe
ads
and
mis
sile
s)•
Uni
t-fu
nded
ser
vice
con
trac
ts fo
r ad
min
istr
ativ
e, c
ompu
tatio
nal,
or s
uppo
rt e
quip
men
t.•
Com
mun
icat
ions
ser
vice
s (e
.g.,
data
/voi
ce li
nks,
ded
icat
ed li
nes,
mic
row
ave
chan
nels
), p
ort
ser
vice
s, a
nd o
ther
uni
t-fu
nded
util
ities
not
par
tof
bas
e op
erat
ing
supp
ort c
osts
.•
Tra
nspo
rtat
ion
cost
s fo
r m
ovin
g eq
uipm
ent (
e.g.
, com
mun
icat
ions
equ
ipm
ent,
com
bat v
ehic
les,
mis
sile
s) to
and
from
test
ran
ges
or tr
aini
ng
area
s•
Tra
nspo
rtat
ion
of p
erso
nnel
and
mat
eria
l to
rem
ote
oper
atin
g si
tes
for
oper
atio
ns, m
aint
enan
ce, o
r su
ppor
t.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Tem
pora
ry D
uty
Tem
pora
ry a
dditi
onal
dut
y or
tem
pora
ry d
uty
(TA
D/T
DY
) pa
y an
d al
low
ance
s co
sts
incl
ude
unit
pers
onne
l tra
vel f
or t
rain
ing,
adm
inis
trat
ive,
or
regu
larly
sch
edul
ed tr
aini
ng a
way
from
the
unit’
s pe
rman
ent o
pera
ting
loca
tion
that
are
ass
ocia
ted
with
a u
nit’s
con
cept
of o
pera
tions
and
su
ppor
t. T
AD
/TD
Y c
osts
incl
ude
mili
tary
and
com
mer
cial
tran
spor
tatio
n ch
arge
s, r
enta
l cos
ts fo
r pa
ssen
ger
vehi
cles
, mile
age
allo
wan
ces,
an d
subs
iste
nce
expe
nses
(e.
g., p
er d
iem
allo
wan
ces
and
inci
dent
al tr
avel
exp
ense
s). E
xclu
des
tem
pora
ry d
uty
asso
ciat
ed w
ith c
ontin
genc
ies
or
war
time
oper
atio
ns.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Dat
a w
areh
ouse
- d
ata/
softw
are
man
agem
ent
A d
ata
war
ehou
se is
a c
ompu
ter
data
base
that
col
lect
s, in
tegr
ates
, and
sto
res
an o
rgan
izat
ion’
s co
mpu
ter
data
with
the
aim
of m
aint
aini
ng
and
prov
idin
g ac
cura
te a
nd ti
mel
y m
anag
emen
t inf
orm
atio
n an
d su
ppor
ting
data
ana
lysi
s. T
he d
ata
may
be
dist
ribut
ed; t
hat i
s, lo
cate
d at
m
ultip
le o
rgan
izat
iona
l and
loca
tions
.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Fac
ilitie
sA
rea
l pro
pert
y en
tity
cons
istin
g of
one
or
mor
e of
the
follo
win
g: a
bui
ldin
g, a
str
uctu
re, a
util
ity s
yste
m, p
avem
ent a
nd u
nder
lyin
g la
nd
Ser
vice
s (2
4/7)
Act
iviti
es a
ssoc
iate
d w
ith o
pera
ting,
mod
ifyin
g, m
aint
aini
ng, s
uppl
ying
, tra
inin
g, a
nd s
uppo
rtin
g a
syst
em in
the
DoD
inve
ntor
y. T
his
incl
udes
co
sts
of c
ontr
act l
abor
, mat
eria
l, an
d as
sets
use
d in
pro
vidi
ng m
aint
enan
ce s
ervi
ces
to a
wea
pon
syst
em, s
ubsy
stem
, sup
port
equ
ipm
ent,
trai
ning
dev
ice,
or
sim
ulat
or a
t the
uni
t lev
el. E
quip
men
t, m
ater
ial,
supp
lies,
and
ser
vice
s ad
opte
d by
a M
ilita
ry S
ervi
ce fo
r us
e by
its
own
forc
es a
nd a
ctiv
ities
. The
se in
clud
e st
anda
rd m
ilita
ry it
ems,
bas
e op
erat
ing
supp
ort,
and
the
supp
lies
and
serv
ices
pro
vide
d by
a M
ilita
ry
Ser
vice
to s
uppo
rt a
nd s
usta
in it
s ow
n fo
rces
, inc
ludi
ng th
ose
assi
gned
to th
e co
mba
tant
com
man
ds. I
tem
s an
d se
rvic
es d
efin
ed a
s S
ervi
ce-
com
mon
by
one
Mili
tary
Ser
vice
are
not
nec
essa
rily
Ser
vice
-com
mon
for
all o
ther
Mili
tary
Ser
vice
s.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Mai
nten
ance
(al
l ele
men
ts; s
ched
ule
and
unsc
hedu
led)
Mai
nten
ance
incl
udes
the
cost
s of
labo
r (o
utsi
de o
f the
sco
pe o
f uni
t-le
vel)
and
mat
eria
ls a
t all
leve
ls o
f mai
nten
ance
in s
upp
ort o
f the
prim
ary
syst
em, s
imul
ator
s, tr
aini
ng d
evic
es, a
nd a
ssoc
iate
d su
ppor
t equ
ipm
ent.
Whe
re c
osts
can
not b
e se
para
tely
iden
tifie
d to
dis
tinct
leve
ls o
f m
aint
enan
ce, t
he c
ateg
ory
that
rep
rese
nts
the
pred
omin
ant c
osts
sho
uld
be u
sed.
Any
mai
nten
ance
cos
ts p
rovi
ded
thro
ugh
a sy
ste
m s
uppo
r tco
ntra
ct s
houl
d be
sep
arat
ely
iden
tifie
d w
ithin
the
appr
opria
te c
ost e
lem
ent.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Org
aniz
atio
nal M
aint
enan
ceO
rgan
izat
iona
l mai
nten
ance
incl
udes
the
cost
of m
ater
ials
and
oth
er c
osts
use
d to
mai
ntai
n a
prim
ary
syst
em, t
rain
ing
devi
ces,
sim
ulat
ors,
an
d su
ppor
t equ
ipm
ent.
Mai
nten
ance
mat
eria
ls a
re b
roke
n in
to c
ateg
orie
s th
at m
ay n
ot b
e ap
plic
able
in a
ll se
rvic
es o
r fo
r al
l typ
es o
f sy
stem
s. It
is th
eref
ore
acce
ptab
le to
com
bine
con
sum
able
and
rep
air
part
s co
sts
whe
re a
ser
vice
’s lo
gist
ics
syst
em d
oes
not d
iffer
entia
te
betw
een
them
.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Inte
rmed
iate
Mai
nten
ance
Inte
rmed
iate
mai
nten
ance
incl
udes
the
cost
of l
abor
and
mat
eria
ls a
nd o
ther
cos
ts e
xpen
ded
by in
term
edia
te le
vel m
aint
enan
ce o
rgan
izat
ion
in s
uppo
rt o
f a p
rimar
y sy
stem
, sim
ulat
ors,
trai
ning
dev
ices
, and
ass
ocia
ted
supp
ort e
quip
men
t. W
here
inte
rmed
iate
leve
l mai
nte
nanc
e ac
tiviti
es c
anno
t be
sepa
rate
ly id
entif
ied
from
org
aniz
atio
nal l
evel
mai
nten
ance
, the
cos
ts a
re o
ften
com
bine
d as
eith
er o
rgan
izat
iona
l or
inte
rmed
iate
mai
nten
ance
. Whe
re o
rgan
izat
iona
l and
inte
rmed
iate
mai
nten
ance
mat
eria
l or
labo
r co
sts
are
com
bine
d, th
e co
st e
stim
ate
shou
ld n
ote
that
fact
in th
e do
cum
enta
tion
to a
void
an
inte
rpre
tatio
n th
at a
por
tion
of th
e m
aint
enan
ce c
osts
wer
e om
itted
.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Dep
ot M
aint
enan
ceD
epot
mai
nten
ance
incl
udes
the
fully
bur
dene
d co
st o
f lab
or, m
ater
ial,
and
over
head
incu
rred
in p
erfo
rmin
g m
ajor
ove
rhau
ls o
r ot
her
depo
t le
vel m
aint
enan
ce o
n a
syst
em, i
ts c
ompo
nent
s, o
r ot
her
asso
ciat
ed e
quip
men
t at c
entr
aliz
ed r
epai
r de
pots
, con
trac
tor
repa
ir fa
cilit
ies,
or
on
site
by
depo
t tea
ms.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Pag
e 4
CB
M+
BC
A IN
FO
RM
AT
ION
PA
PE
R -
DE
FIN
ITIO
NS
/DE
SC
RIP
TIO
NS
Oct
ob
er 2
010
Ter
mD
efin
itio
n/D
escr
ipti
on
R
efer
ence
Co
st E
lem
ents
Ene
rgy
(fue
l, pe
trol
eum
, oil,
ele
ctric
ity,
etc.
. )
The
se c
osts
incl
ude
cost
of P
OL,
pro
puls
ion
fuel
, and
fuel
add
itive
s us
ed b
y sy
stem
s in
per
form
ing
thei
r no
rmal
pea
cetim
e m
issi
ons.
The
se
cost
s al
so in
clud
e th
e co
st o
f fie
ld-g
ener
ated
ele
ctric
ity a
nd c
omm
erci
al e
lect
ricity
nec
essa
ry to
sup
port
the
oper
atio
n of
a s
yste
m.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Sus
tain
ing
Sup
port
T
his
cate
gory
incl
udes
sup
port
ser
vice
s pr
ovid
ed b
y ce
ntra
lly m
anag
ed s
uppo
rt a
ctiv
ities
ext
erna
l to
the
units
that
ow
n th
e op
erat
ing
syst
ems.
It
is in
tend
ed th
at c
osts
incl
uded
in th
is c
ateg
ory
repr
esen
t cos
ts th
at c
an b
e id
entif
ied
to a
spe
cific
sys
tem
and
exc
lude
cos
ts th
at m
ust b
e ar
bitr
arily
allo
cate
d. W
here
a s
ingl
e co
st e
lem
ent i
nclu
des
mul
tiple
type
s of
sup
port
, or
whe
re th
e su
ppor
t is
prov
ided
by
cont
ract
ors,
eac
h sh
ould
be
sepa
rate
ly id
entif
ied
in th
e co
st e
stim
ate.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Sys
tem
s S
peci
fic T
rain
ing
The
cos
t of s
yste
m-s
peci
fic s
peci
alty
trai
ning
for
indi
vidu
als
that
nee
d to
be
repl
aced
due
to a
ttriti
on a
nd n
orm
al r
otat
ion.
Tra
inin
g co
sts
shou
ld
incl
ude
the
cost
s of
inst
ruct
ors,
trai
ning
sup
port
per
sonn
el, t
rain
ing
devi
ces,
cou
rse
supp
ort c
osts
, and
cou
rse
mat
eria
ls, a
s w
ell a
s al
l the
co
sts
of tr
aine
es, p
er d
iem
, and
trav
el d
irect
ly a
ssoc
iate
d w
ith th
e tr
aini
ng.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Sup
port
Equ
ipm
ent R
epla
cem
ent
The
cos
ts in
curr
ed to
rep
lace
equ
ipm
ent t
hat i
s ne
eded
to o
pera
te o
r su
ppor
t a p
rimar
y sy
stem
, sub
syst
ems,
trai
ning
sys
tem
s, a
nd o
ther
su
ppor
t equ
ipm
ent.
The
sup
port
equ
ipm
ent b
eing
rep
lace
d (e
.g.,
tool
s an
d te
st s
ets)
may
be
uniq
ue to
the
syst
em o
r it
may
be
com
mon
to a
nu
mbe
r of
sys
tem
s, in
whi
ch c
ase
the
cost
s m
ust b
e al
loca
ted
amon
g th
e re
spec
tive
syst
ems.
Not
e: T
his
elem
ent a
ddre
sses
rep
lace
men
t equ
ipm
ent o
nly.
The
cos
t of i
nitia
l sup
port
equ
ipm
ent p
rocu
rem
ent i
s no
rmal
ly r
egar
ded
as
an
inve
stm
ent c
ost,
and
not a
s an
O&
S c
ost.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Sus
tain
ing
Eng
inee
ring
and
Pro
gram
M
anag
emen
tT
he la
bor,
mat
eria
l, an
d ov
erhe
ad c
osts
incu
rred
in p
rovi
ding
con
tinue
d sy
stem
s en
gine
erin
g an
d pr
ogra
m m
anag
emen
t ove
rsig
ht to
man
age
the
prog
ram
and
to d
eter
min
e th
e in
tegr
ity o
f a s
yste
m, t
o m
aint
ain
oper
atio
nal r
elia
bilit
y, to
app
rove
des
ign
chan
ges,
and
to e
nsur
e co
nfor
man
ce w
ith e
stab
lishe
d sp
ecifi
catio
ns a
nd s
tand
ards
. In
the
case
of s
yste
ms
that
are
sim
ulta
neou
sly
in p
rodu
ctio
n an
d op
era
tions
, the
co
sts
over
and
abo
ve th
e co
sts
the
acqu
isiti
on p
rogr
am o
ffice
incu
rs to
ove
rsee
and
man
age
acqu
isiti
on p
hase
act
iviti
es a
re in
clud
ed in
the
O&
S e
stim
ate.
Whe
n a
sepa
rate
sus
tain
men
t pro
gram
man
agem
ent o
ffice
is e
stab
lishe
d or
is s
epar
atel
y id
entif
iabl
e fr
om th
e ac
quis
ition
su
ppor
t man
agem
ent o
ffice
, the
cos
ts o
f the
sus
tain
men
t pro
gram
man
agem
ent o
ffice
will
be
incl
uded
in th
e O
&S
est
imat
e.C
osts
rep
orte
d in
this
cat
egor
y m
ay in
clud
e, b
ut a
re n
ot li
mite
d to
, gov
ernm
ent a
nd/o
r co
ntra
ct e
ngin
eerin
g se
rvic
es, s
tudi
es,
and
tech
nica
l ad
vice
. Exa
mpl
es m
ight
incl
ude
airc
raft
stru
ctur
al in
tegr
ity m
onito
ring
or c
orro
sion
mon
itorin
g. S
peci
fic m
odifi
catio
ns to
har
dw
are
or s
oftw
are
are
incl
uded
in e
lem
ent 5
.0, C
ontin
uing
Sys
tem
Impr
ovem
ents
. S
usta
inin
g su
ppor
t cos
ts p
rovi
ded
thro
ugh
a sy
stem
sup
port
con
tra
ct s
houl
d be
sep
arat
ely
iden
tifie
d w
ithin
the
appr
opria
te c
ost e
lem
ent,
if po
ssib
le.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Oth
er S
usta
inin
g S
uppo
rtT
his
elem
ent i
nclu
des
any
sign
ifica
nt s
usta
inin
g su
ppor
t cos
ts n
ot o
ther
wis
e ac
coun
ted
for.
Thi
s co
st e
lem
ent m
ay b
e us
ed to
iden
tify
expe
nses
suc
h as
thos
e lis
ted
belo
w, i
f the
y ap
ply
to th
e sy
stem
for
whi
ch th
e es
timat
e is
bei
ng m
ade:
• T
est a
nd e
valu
atio
n in
sup
port
of d
eplo
yed
syst
ems,
suc
h as
ran
ge c
osts
, tes
t sup
port
, dat
a re
duct
ion,
and
test
rep
ortin
g.•
Air,
sea
, and
land
sup
port
not
fund
ed b
y th
e un
it an
d pr
ovid
ed b
y ot
her
activ
ities
to v
erify
the
prop
er o
pera
tion
of a
n el
ectr
onic
, co
mm
unic
atio
n, s
enso
r, o
r ot
her
sim
ilar
syst
em.
• C
entr
ally
pro
vide
d te
chni
cal a
ssis
tanc
e, s
uch
as H
elp
Des
ks, t
hat p
rovi
de D
oDw
ide
or S
ervi
ce-w
ide
supp
ort.
• C
omm
unic
atio
n se
rvic
es (
e.g.
, dat
a/vo
ice
links
, ded
icat
ed li
nes,
mic
row
ave
chan
nels
), h
ardw
are,
and
sof
twar
e le
ases
pur
chas
ed o
n a
DoD
-w
ide
or S
ervi
ce w
ide
basi
s fo
r di
rect
sys
tem
spe
cific
sup
port
of a
sys
tem
.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Indi
rect
Sup
port
Indi
rect
sup
port
cos
ts a
re th
ose
inst
alla
tion
and
pers
onne
l sup
port
cos
ts th
at c
anno
t be
dire
ctly
rel
ated
to th
e un
its a
nd p
erso
nnel
that
ope
rate
an
d su
ppor
t the
sys
tem
bei
ng a
naly
zed.
O&
S c
ost a
naly
ses
shou
ld in
clud
e m
argi
nal i
ndire
ct c
osts
. The
inte
ntio
n is
to in
clud
e o
nly
the
cost
s th
at w
ould
like
ly c
hang
e if
the
actio
n be
ing
anal
yzed
(e.
g., n
ew s
yste
m d
evel
opm
ent,
etc.
) oc
curs
. In
dire
ct s
uppo
rt c
osts
are
mor
e re
leva
nt in
si
tuat
ions
whe
n to
tal D
oD m
anpo
wer
wou
ld c
hang
e or
whe
n in
stal
latio
ns a
re a
ffect
ed (
i.e.,
expa
nded
, con
trac
ted,
ope
ned,
or
clos
ed).
Ind
irect
su
ppor
t cos
ts m
ay a
lso
be r
elev
ant i
n an
alys
es in
volv
ing
a ch
oice
bet
wee
n go
vern
men
t and
con
trac
ted
supp
ort.
In th
ese
case
s it
is im
port
ant
to c
ompa
re th
e go
vern
men
t and
con
trac
ted
alte
rnat
ives
on
a co
mpa
rabl
e ba
sis,
incl
udin
g th
e re
leva
nt in
dire
ct c
osts
of a
ll al
tern
ativ
es.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Inst
alla
tion
Sup
port
Incl
udes
bas
e op
erat
ions
sup
port
; fac
ilitie
s su
stai
nmen
t, re
stor
atio
n, a
nd m
oder
niza
tion;
bas
e co
mm
unic
atio
ns; a
nd o
ther
sim
ilar
cost
s. B
ase
oper
atin
g su
ppor
t may
incl
ude
func
tions
suc
h as
com
mun
icat
ions
, sup
ply
oper
atio
ns, p
erso
nnel
ser
vice
s, in
stal
latio
n se
curit
y, b
ase
tran
spor
tatio
n, e
tc.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Per
sonn
el S
uppo
rtIn
clud
es th
e co
sts
for
the
acqu
isiti
on, i
nitia
l tra
inin
g, a
nd q
ualit
y of
life
pro
gram
s ne
cess
ary
to m
aint
ain
a q
ualit
y fo
rce.
Indi
rect
per
sonn
el
supp
ort c
osts
are
freq
uent
ly a
lloca
ted
to a
sys
tem
bas
ed o
n th
e nu
mbe
r an
d ty
pe o
f sys
tem
-spe
cific
indi
vidu
als
iden
tifie
d in
the
Uni
t M
anpo
wer
por
tion
of th
e O
&S
cos
t est
imat
e.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Per
sonn
el A
dmin
- A
cqui
sitio
n an
d O
verh
ead
acco
unts
Incl
udes
cos
ts fo
r re
crui
ting,
exa
min
ing
and
proc
essi
ng in
divi
dual
s in
to th
e m
ilita
ry s
ervi
ce a
nd fo
r ad
vert
isin
g in
sup
port
of
recr
uitin
g ac
tiviti
es.O
SD
OS
Cos
t Est
imat
ing
Gui
de (
Oct
. 200
7)
Per
sonn
el B
enef
itsIn
clud
es c
osts
for
oper
atio
n an
d m
aint
enan
ce o
f fam
ily h
ousi
ng c
hild
dev
elop
men
t cen
ters
, fam
ily c
ente
rs, f
amily
adv
ocac
y pr
ogra
ms,
you
th
deve
lopm
ent p
rogr
ams,
com
mis
sarie
s an
d D
oD s
choo
ls.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Pag
e 5
CB
M+
BC
A IN
FO
RM
AT
ION
PA
PE
R -
DE
FIN
ITIO
NS
/DE
SC
RIP
TIO
NS
Oct
ob
er 2
010
Ter
mD
efin
itio
n/D
escr
ipti
on
R
efer
ence
Co
st E
lem
ents
Med
ical
T
he c
osts
for
med
ical
car
e fo
r ac
tive
duty
per
sonn
el a
nd th
eir
depe
nden
ts.
Incl
udes
pro
visi
ons
for
patie
nt c
are
in r
egio
nal d
efen
se fa
cilit
ies,
st
atio
n ho
spita
ls a
nd m
edic
al c
linic
s, a
nd d
enta
l fac
ilitie
s as
wel
l as
care
in n
on-d
efen
se fa
cilit
ies.
Als
o in
clud
es T
RIC
AR
E a
nd o
ther
hea
lth
supp
ort a
ctiv
ities
.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Gen
eral
Tra
inin
g an
d E
duca
tion
The
cos
ts fo
r ge
nera
l tra
inin
g an
d ed
ucat
ion
not a
ssoc
iate
d w
ith a
spe
cific
wea
pon
or o
ther
sys
tem
pro
vide
d th
roug
h ce
ntra
l act
iviti
es.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Bas
ic &
Initi
al S
kill
Tra
inin
gIn
clud
es th
e co
sts
of r
ecru
it an
d in
itial
ski
lls tr
aini
ng.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Edu
catio
nal A
ctiv
ities
Incl
udes
the
cost
of p
rofe
ssio
nal m
ilita
ry e
duca
tion;
and
aca
dem
ic e
duca
tion
prog
ram
s.O
SD
OS
Cos
t Est
imat
ing
Gui
de (
Oct
. 200
7)
Lice
nses
Aut
horiz
atio
nO
SD
OS
Cos
t Est
imat
ing
Gui
de (
Oct
. 200
7)
Tec
hnic
al R
efre
shT
he p
erio
dic
repl
acem
ent o
f Com
mer
cial
Off-
The
-She
lf (C
OT
S)
com
pone
nts;
e.g
. pro
cess
ors,
dis
play
s, c
ompu
ter
oper
atin
g sy
stem
s,
com
mer
cial
ly a
vaila
ble
softw
are
(CA
S)
with
in la
rger
DoD
sys
tem
s to
ass
ure
cont
inue
d su
ppor
tabi
lity
of th
at s
yste
m th
roug
h an
inde
finite
se
rvic
e lif
e.
Dat
a w
areh
ouse
Incl
udes
the
cost
s as
soci
ated
with
a c
ompu
ter
data
base
that
col
lect
s, in
tegr
ates
, and
sto
res
an o
rgan
izat
ion’
s co
mpu
ter
data
with
the
aim
of
mai
ntai
ning
and
pro
vidi
ng a
ccur
ate
and
timel
y m
anag
emen
t inf
orm
atio
n an
d su
ppor
ting
data
ana
lysi
s. T
he d
ata
may
be
dist
ribut
ed;
that
is,
loca
ted
at m
ultip
le o
rgan
izat
iona
l and
loca
tions
.
Pac
kagi
ng, H
andl
ing,
Sto
rage
, and
T
rans
port
atio
n:
Pac
kagi
ng, h
andl
ing,
sto
rage
, and
tran
spor
tatio
n (P
HS
&T
) en
com
pass
es th
e re
quire
men
ts, r
esou
rces
, pro
cess
es, p
roce
dure
s, d
esig
n
cons
ider
atio
ns, a
nd m
etho
ds to
ens
ure
that
all
syst
em e
quip
men
t and
sup
port
item
s ar
e pr
eser
ved,
pac
kage
d, h
andl
ed, s
tore
d, a
nd
tran
spor
ted
prop
erly
. T
his
elem
ent i
nclu
des
all s
peci
al p
rovi
sion
s, c
onta
iner
s (r
eusa
ble
and
disp
osab
le),
and
sup
plie
s ne
cess
ary
to s
uppo
rt
pack
agin
g, p
rese
rvat
ion,
sto
rage
, han
dlin
g, a
nd/o
r tr
ansp
orta
tion
of p
rime
mis
sion
equ
ipm
ent,
test
and
sup
port
equ
ipm
ent,
spar
es
and
repa
ir pa
rts,
per
sonn
el, t
echn
ical
dat
a, a
nd m
obile
faci
litie
s. I
n es
senc
e, th
is e
lem
ent b
asic
ally
cov
ers
the
initi
al d
istr
ibut
ion
of p
rodu
cts
and
the
tran
spor
tatio
n of
per
sonn
el a
nd m
ater
ials
for
mai
nten
ance
pur
pose
s.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Con
tinui
ng S
yste
m Im
prov
emen
tsT
his
port
ion
of th
e co
st e
lem
ent s
truc
ture
incl
udes
the
cost
s of
har
dwar
e an
d so
ftwar
e up
date
s th
at o
ccur
afte
r de
ploy
men
t of a
sys
tem
that
im
prov
e a
syst
em's
saf
ety,
rel
iabi
lity,
mai
ntai
nabi
lity,
or
perf
orm
ance
cha
ract
eris
tics
to e
nabl
e th
e sy
stem
to m
eet i
ts b
asic
ope
ratio
nal
requ
irem
ents
thro
ugho
ut it
s lif
e. T
hese
cos
ts in
clud
e go
vern
men
t and
con
trac
t lab
or, m
ater
ials
, and
ove
rhea
d co
sts.
Cos
ts s
houl
d be
se
para
ted
into
gov
ernm
ent a
nd c
ontr
acto
r co
sts
with
in e
ach
cost
ele
men
t, if
poss
ible
. T
he c
ontin
uing
sys
tem
impr
ovem
ents
por
tion
of a
n O
&S
est
imat
e do
es n
ot in
clud
e al
l cha
nges
to a
sys
tem
dev
elop
ed s
ubse
quen
t to
the
initi
al d
eliv
ered
con
figur
atio
n. S
yste
m im
pro
vem
ents
id
entif
ied
as p
art o
f an
incr
emen
tal e
volu
tiona
ry a
cqui
sitio
n st
rate
gy o
r pr
e-pl
anne
d pr
oduc
t im
prov
emen
t pro
gram
that
are
incl
uded
in th
e ac
quis
ition
cos
t est
imat
e ar
e no
t inc
lude
d in
this
por
tion
of a
n O
&S
cos
t est
imat
e. A
ny im
prov
emen
t of s
uffic
ient
dol
lar
valu
e th
at it
wou
ld
qual
ify a
s a
dist
inct
Maj
or D
efen
se A
cqui
sitio
n P
rogr
ams
(MD
AP
) in
its
own
right
nor
mal
ly w
ould
not
be
incl
uded
in th
is p
ortio
n o
f the
O&
S
cost
est
imat
e.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Har
dwar
e M
oder
niza
tions
The
se c
osts
incl
ude
cost
s as
soci
ated
with
mod
ifyin
g th
e de
fens
e sy
stem
, sup
port
equ
ipm
ent,
and
trai
ning
dev
ices
. All
cost
s as
soci
ated
with
de
velo
ping
, pro
duci
ng, a
nd in
stal
ling
the
mod
ifica
tions
are
incl
uded
. Whe
n ha
rdw
are
mod
ifica
tions
req
uire
cha
nges
in s
yste
m o
r su
ppor
t so
ftwar
e or
tech
nica
l doc
umen
tatio
n, th
ese
cost
s sh
ould
be
incl
uded
with
har
dwar
e m
odifi
catio
ns c
osts
.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Sof
twar
e M
aint
enan
ce a
nd M
odifi
catio
nsT
he la
bor,
mat
eria
l, an
d ov
erhe
ad c
osts
incu
rred
afte
r de
ploy
men
t in
supp
ortin
g th
e up
date
, mai
nten
ance
and
mod
ifica
tion,
inte
grat
ion,
and
co
nfig
urat
ion
man
agem
ent o
f sof
twar
e. D
epot
-leve
l mai
nten
ance
act
iviti
es, g
over
nmen
t sof
twar
e ce
nter
s, la
bora
torie
s, o
r co
ntra
ctor
s m
ay
incu
r th
ese
cost
s. In
clud
es a
ny li
cens
ing
cost
s fo
r so
ftwar
e no
t ow
ned
by th
e op
erat
ing
units
. Inc
lude
s op
erat
iona
l, m
aint
enan
ce, s
uppo
rt a
nd
diag
nost
ic s
oftw
are
prog
ram
s fo
r th
e pr
imar
y sy
stem
, sup
port
equ
ipm
ent,
and
trai
ning
equ
ipm
ent.
The
res
pect
ive
cost
s of
ope
ratin
g an
d m
aint
aini
ng th
e as
soci
ated
com
pute
r an
d pe
riphe
ral e
quip
men
t in
the
softw
are
supp
ort a
ctiv
ity a
nd th
e co
st to
con
duct
all
test
ing
of th
e so
ftwar
e sh
ould
als
o be
incl
uded
.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Dis
po
sal
Con
sist
s of
cos
ts a
ssoc
iate
d w
ith d
emili
tariz
atio
n an
d di
spos
al o
f a m
ilita
ry s
yste
m a
t the
end
of i
ts u
sefu
l life
. The
se c
osts
in s
ome
case
s re
pres
ent o
nly
a sm
all f
ract
ion
of a
sys
tem
's li
fe-c
ycle
cos
t and
may
not
alw
ays
be c
onsi
dere
d w
hen
prep
arin
g lif
e-cy
cle
cost
est
imat
es.
How
ever
, it i
s im
port
ant t
o co
nsid
er d
emili
tariz
atio
n an
d di
spos
al e
arly
in th
e lif
e-cy
cle
of a
sys
tem
bec
ause
thes
e co
sts
can
be s
igni
fican
t, de
pend
ing
on th
e ch
arac
teris
tics
of th
e sy
stem
. C
osts
ass
ocia
ted
with
dem
ilita
rizat
ion
and
disp
osal
may
incl
ude
disa
ssem
bly,
mat
eria
ls
proc
essi
ng, d
econ
tam
inat
ion,
har
dwar
e, c
olle
ctio
n/st
orag
e/di
spos
al o
f haz
ardo
us m
ater
ials
and
/or
was
te, s
afet
y pr
ecau
tions
, and
tr
ansp
orta
tion
of th
e sy
stem
to a
nd fr
om th
e di
spos
al s
ite. S
yste
ms
may
be
give
n cr
edit
in th
e co
st e
stim
ate
for
reso
urce
rec
over
y an
d re
cycl
ing
cons
ider
atio
ns.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Sys
tem
Rem
oval
An
elem
ent o
f a m
aint
enan
ce e
vent
. O
ne o
f mor
e ta
sks
nece
ssar
y to
ret
ain
an it
em in
or
rest
ore
it to
a s
peci
fied
cond
ition
.
Env
ironm
enta
l Pro
tect
ion
The
pra
ctic
e of
pro
tect
ing
the
envi
ronm
ent,
on in
divi
dual
, org
aniz
atio
nal o
r go
vern
men
tal l
evel
, for
the
bene
fit o
f the
nat
ural
env
ironm
ent a
nd
(or)
hum
ans.
Pag
e 6
CB
M+
BC
A IN
FO
RM
AT
ION
PA
PE
R -
DE
FIN
ITIO
NS
/DE
SC
RIP
TIO
NS
Oct
ob
er 2
010
Ter
mD
efin
itio
n/D
escr
ipti
on
R
efer
ence
Po
ten
tial
Ben
efit
Are
as o
r M
easu
res
of
Eff
ecti
ven
ess
Maintenan
ceC
BM
+ te
chno
logi
es h
ave
the
pote
ntia
l to
impr
ove
mai
nten
ance
cap
abili
ties
and
busi
ness
pro
cess
es a
nd e
nhan
ce r
elia
bilit
y an
alys
is e
ffor
ts;
invo
lves
the
inte
grat
ion
of s
uppo
rt e
lem
ents
to e
nabl
e en
hanc
ed m
aint
enan
ce-c
entr
ic lo
gist
ics
syst
em r
espo
nse;
and
faci
litat
es m
ore
accu
rate
pr
edic
tions
of i
mpe
ndin
g fa
ilure
s (b
ased
on
cond
ition
dat
a), r
esul
ting
in d
ram
atic
sav
ings
.
OS
D C
BM
+ G
uide
book
Pla
tform
Mai
nten
ance
func
tions
per
form
ed a
t the
uni
t (e.
g., g
roun
d ve
hicl
e, a
ircra
ft, s
hip,
sup
port
sys
tem
, sub
-sys
tem
or
com
pon
ent)
leve
l. A
t the
ta
ctic
al le
vel,
CB
M+
may
mea
n ne
w to
ols,
test
equ
ipm
ent,
and
embe
dded
onb
oard
dia
gnos
tics.
The
se to
ols
take
adv
anta
ge o
f cur
ren
t and
em
ergi
ng c
omm
erci
al a
nd d
iagn
ostic
tech
nolo
gies
that
tran
slat
e sy
stem
con
ditio
n da
ta (
such
as
tem
pera
ture
, vib
ratio
n, c
ycle
-tim
e) in
co
mbi
natio
n w
ith e
nviro
nmen
tal f
acto
rs (
like
dese
rt, a
rctic
, and
hig
h hu
mid
ity)
into
pro
activ
e m
aint
enan
ce a
ctio
ns th
at a
re p
erfo
rmed
onl
y w
hen
ther
e is
evi
denc
e of
act
ual n
eed.
With
CB
M+
, mai
ntai
ners
can
con
vert
wea
pon
syst
em o
r eq
uipm
ent c
ondi
tion
data
into
pro
activ
e m
aint
enan
ce a
ctio
ns. S
ched
uled
insp
ectio
ns a
re s
uppl
emen
ted
or r
epla
ced
beca
use
mai
ntai
ners
will
hav
e an
alyt
ical
.
OS
D C
BM
+ G
uide
book
Life
Cyc
le M
anag
emen
tM
aint
enan
ce fu
nctio
ns p
erfo
rmed
by
the
life
cycl
e m
anag
er b
ased
on
CB
M+
info
rmat
ion
and
data
(un
it an
d ab
ove
his
tory
, tre
ndin
g,
diag
nost
ics,
pro
gnos
tics
and
logi
stic
sup
port
) to
man
age
and
supp
ort t
he h
eadq
uart
ers
and
oper
atio
nal c
omm
and
infr
astr
uctu
res.
Im
plem
entin
g C
BM
+ te
chno
logi
es n
ot o
nly
impr
oves
the
abili
ty to
pre
dict
failu
res,
mai
nten
ance
pla
nnin
g bu
t the
ben
efits
car
ry o
ver
into
re
late
d ar
eas,
suc
h as
sup
ply
supp
ort,
use
of fa
cilit
ies
and
test
equ
ipm
ent,
skill
s m
anag
emen
t, an
d ot
her
logi
stic
s su
ppor
t ele
men
ts. W
hile
so
me
CB
M+
feat
ures
are
inst
alle
d at
indi
vidu
al p
latfo
rm le
vel,
the
bene
fits
of C
BM
+ a
re m
ost e
ffect
ivel
y ac
hiev
ed w
hen
an e
ntir
e fle
et is
in
corp
orat
ed a
nd th
e in
form
atio
n is
leve
rage
d. A
t the
str
ateg
ic le
vel,
CB
M+
iden
tifie
s m
aint
enan
ce a
ctio
ns b
ased
on
a ne
ar-r
eal-
time
asse
ssm
ent o
f equ
ipm
ent s
tatu
s fr
om d
iagn
ostic
sen
sors
and
equ
ipm
ent.
Dat
a co
llect
ed fr
om e
mbe
dded
sen
sors
, suc
h as
hea
lth a
nd u
sage
m
onito
ring
syst
ems
are
then
tran
slat
ed in
to p
redi
ctiv
e tr
ends
or
met
rics
that
ant
icip
ate
whe
n co
mpo
nent
failu
res
will
occ
ur a
nd id
entif
ies
com
pone
nts
that
may
req
uire
red
esig
n or
rep
lace
men
t to
redu
ce h
igh-
failu
re r
ates
. Com
mon
use
of i
tem
s an
d da
ta a
mon
g th
e S
ervi
ces
on li
k esy
stem
s w
ill g
reat
ly r
educ
e lo
gist
ics
foot
prin
ts a
nd c
osts
.
OS
D C
BM
+ G
uide
book
Ope
ratio
nal/U
nit/S
quad
ron/
B
atta
lion/
Fle
etA
hom
ogen
eous
mili
tary
org
aniz
atio
n. T
o th
e co
mm
ande
r at
the
oper
atio
nal l
evel
, CB
M+ b
rings
the
abili
ty to
mee
t mis
sion
req
uire
men
ts a
nd
incr
ease
wea
pon
syst
em a
vaila
bilit
y. C
BM
+ p
rovi
des
com
man
ders
, mis
sion
pla
nner
s, a
nd lo
gist
ics
prov
ider
s w
ith in
form
atio
n th
at e
nabl
es
bette
r m
aint
enan
ce d
ecis
ion
mak
ing
and
mis
sion
ass
ignm
ent.
CB
M+
sup
port
s F
ocus
ed L
ogis
tics
by e
nhan
cing
com
man
d si
tuat
iona
l aw
aren
ess
at th
e w
eapo
n sy
stem
leve
l.
System Reliability
Rel
iabi
lity
is th
e pr
obab
ility
of a
n ite
m to
per
form
a r
equi
red
func
tion
unde
r st
ated
con
ditio
ns fo
r a
spec
ified
per
iod
of ti
me
. Sys
tem
rel
iabi
lity
is
defin
ed a
s th
e ab
ility
of a
sys
tem
to p
erfo
rm a
s de
sign
ed in
an
oper
atio
nal e
nviro
nmen
t ove
r a
pres
crib
ed p
erio
d w
ithou
t fai
lure
. DoD
’s s
yste
m
relia
bilit
y ob
ject
ive
is to
min
imiz
e th
e ris
k of
failu
re w
ithin
the
defin
ed a
vaila
bilit
y, c
ost,
sche
dule
, wei
ght,
pow
er, a
nd v
olu
me
cons
trai
nts.
DoD
RA
M G
uide
Number of no evidence of failu
res (NEO
F)F
alse
failu
re. N
EO
F's
can
be
caus
ed b
y ch
ange
s in
the
oper
atin
g en
viro
nmen
t, er
rors
in d
iagn
ostic
pro
cedu
res,
cum
bers
ome
test
equ
ipm
ent,
or th
e ba
sic
desi
gn o
f the
sys
tem
.C
BM
+ 1
01 B
riefin
g -
OS
D C
BM
+ A
dvis
ory
Gro
up
Accuracy of failu
re prediction
CB
M+ u
ses
mod
ern
mai
nten
ance
tool
s, te
chno
logi
es, a
nd p
roce
sses
to d
etec
t the
ear
ly in
dica
tions
of a
faul
t or
impe
ndin
g fa
ilure
bas
ed o
n re
al-t
ime
cond
ition
dat
a.
OS
D C
BM
+ G
uide
book
Equipment mean
downtime (logistics responsiveness)
CB
M+ u
ses
mod
ern
mai
nten
ance
tool
s, te
chno
logi
es, a
nd p
roce
sses
to d
etec
t the
ear
ly in
dica
tions
of a
faul
t or
impe
ndin
g fa
ilure
to a
llow
tim
e fo
r m
aint
enan
ce a
nd s
uppl
y ch
anne
ls to
rea
ct a
nd m
inim
ize
the
impa
ct o
n sy
stem
ope
ratio
nal r
eadi
ness
and
life
-cyc
le c
osts
.
DU
SD
(Lo
gist
ics
and
Mat
eria
l Rea
dine
ss)
Mem
oran
dum
- L
ife C
ycle
S
usta
inm
ent O
utco
me
Met
rics,
dat
ed 1
0 M
ar 2
007
Effectiveness of Platform
/system condition
assessment
A m
easu
re o
f the
ove
rall
effe
ctiv
enes
s of
the
CB
M+ c
apab
ility
(E
HM
or
VH
M)
as
it re
late
s to
the
plat
form
or
syst
em d
efin
ed fo
r th
e sy
stem
be
ing
eval
uate
d. S
uch
as n
umbe
r of
fals
e
Mission reliability
The
pro
babi
lity
that
an
item
can
per
form
its
stat
ed fu
nctio
n fo
r a
spec
ified
inte
rval
und
er s
tate
d co
nditi
ons.
DU
SD
(Lo
gist
ics
and
Mat
eria
l Rea
dine
ss)
Mem
oran
dum
- L
ife C
ycle
S
usta
inm
ent O
utco
me
Met
rics,
dat
ed 1
0 M
ar 2
007;
US
D (
AT
&L)
M
emor
andu
m -
Tot
al L
ife C
ycle
Sys
tem
s M
anag
emen
t (T
LCS
M)
Met
rics
date
d 22
Nov
200
5
Mis
sion
abo
rt r
ate
Abo
rt r
ate
is th
e nu
mbe
r of
abo
rts
divi
ded
by th
e nu
mbe
r of
sor
ties.
Com
bat p
ower
/pla
tform
/sys
tem
av
aila
bilit
yS
ee 1
08 (
Ava
ilabi
lity)
Safety
The
con
ditio
n of
bei
ng p
rote
cted
aga
inst
phy
sica
l, oc
cupa
tiona
l, an
d ot
her
type
s or
con
sequ
ence
s of
dam
age,
failu
re, e
rror
, acc
iden
ts, h
arm
, or
any
oth
er e
vent
whi
ch c
ould
be
cons
ider
ed n
on-d
esira
ble.
OS
D C
BM
+ G
uide
book
Num
ber
of a
void
ed m
isha
ps o
r m
aint
enan
ce r
isks
Num
ber
of m
isha
ps o
r m
aint
enan
ce r
isks
that
can
be
attr
ibut
ed to
rep
lace
men
t of c
ompo
nent
(s)/
syst
ems
that
pre
vent
ed a
failu
re f
rom
oc
curr
ing.
System design
improvements
Tho
se a
ctio
ns ta
ken
to e
nhan
ce a
sys
tem
's p
erfo
rman
ce, f
unct
ion,
saf
ety,
rel
iabi
lity,
mai
ntai
nabi
lity,
etc
.O
SD
OS
Cos
t Est
imat
ing
Gui
de (
Oct
. 200
7); D
OD
I 500
0.2
Pag
e 7
CB
M+
BC
A IN
FO
RM
AT
ION
PA
PE
R -
DE
FIN
ITIO
NS
/DE
SC
RIP
TIO
NS
Oct
ob
er 2
010
Ter
mD
efin
itio
n/D
escr
ipti
on
R
efer
ence
Po
ten
tial
Ben
efit
Are
as o
r M
easu
res
of
Eff
ecti
ven
ess
Maintenan
ce facilities usage
(all levels)
App
licat
ion
of C
BM
+ te
chno
logi
es c
ould
res
ult i
n th
e re
duct
ion
of th
e m
aint
enan
ce fa
cilit
ies
at a
ny le
vel o
f mai
nten
ance
. For
the
CB
M+ B
CA
de
fine
faci
litie
s in
volv
ed a
nd th
e po
tent
ial i
mpa
ct w
ith th
e pr
opos
ed C
BM
+ c
hang
e.
OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Troubleshooting an
d repair action
An
elem
ent o
f a m
aint
enan
ce e
vent
. O
ne o
f mor
e ta
sks
nece
ssar
y to
ret
ain
an it
em in
or
rest
ore
it to
a s
peci
fied
cond
ition
.O
SD
OS
Cos
t Est
imat
ing
Gui
de (
Oct
. 200
7)
Acc
urat
e an
d tim
elin
ess
Dat
a A
ccur
acy
- D
egre
e to
whi
ch th
e da
ta r
epre
sent
s ac
tual
(tr
ue)
valu
e. D
ata
Tim
elin
ess
- D
egre
e to
whi
ch th
e da
ta is
ava
ilabl
e w
hen
need
ed o
r re
quire
d.O
SD
CB
M+
Gui
debo
ok
Mean
down tim
eM
ean
dow
n tim
e (M
DT
) is
the
aver
age
tota
l tim
e re
quire
d to
res
tore
an
asse
t to
its fu
ll op
erat
iona
l cap
abili
ties.
MD
T in
clud
es t
he ti
me
from
re
port
ing
of a
n as
set b
eing
dow
n to
the
asse
t bei
ng g
iven
bac
k to
ope
ratio
ns o
r pr
oduc
tion
to o
pera
te.
DU
SD
(Lo
gist
ics
and
Mat
eria
l Rea
dine
ss)
Mem
oran
dum
- L
ife C
ycle
S
usta
inm
ent O
utco
me
Met
rics,
dat
ed 1
0 M
ar 2
007
Logistics decision process (es)
Logi
stic
s pr
oces
s (e
s) th
at a
re p
oten
tially
impa
cted
by
the
prop
osed
CB
M+ c
apab
ility
. Inc
lude
s an
y su
pply
cha
in, a
sset
and
inve
ntor
y co
ntro
l, sp
are
part
s m
anag
emen
t , w
areh
ouse
man
agem
ent a
nd lo
gist
ics
info
rmat
ion
man
agem
ent p
roce
sses
. Con
side
r sp
ecifi
c m
etric
s or
MO
Es
cons
ider
ed to
be
prob
lem
are
as o
r de
sire
d en
d st
ate
cond
ition
.
US
D (
AT
&L)
Mem
oran
dum
-T
otal
Life
Cyc
le S
yste
ms
Man
agem
ent
(TLC
SM
) M
etric
s da
ted
22 N
ov 2
005;
DU
SD
(Lo
gist
ics
and
Mat
eria
l R
eadi
ness
) M
emor
andu
m -
Life
Cyc
le S
usta
inm
ent O
utco
me
Met
rics,
dat
ed 1
0 M
ar 2
007
Sup
ply
chai
n im
pact
sP
oten
tial i
mpa
cts
that
the
prop
osed
CB
M+
capa
bilit
y w
ill h
ave
on s
uppl
y ch
ain
man
agem
ent s
uch
as a
sset
vis
ibili
ty, n
umbe
r of
con
trac
ts,
back
orde
r ag
e, b
acko
rder
rat
es, r
equi
sitio
n re
spon
se ti
me
, etc
.. A
sset
acc
ount
abili
ty a
nd in
vent
ory
cont
rol
Iden
tify,
trac
k an
d m
anag
e in
vent
ory
of w
eapo
n sy
stem
com
pone
nts
Spa
re p
arts
man
agem
ent
Iden
tify,
trac
k an
d m
anag
e sp
are
part
s to
sup
port
ope
ratio
nal r
equi
rem
ents
War
ehou
se m
anag
emen
t M
anag
emen
t inf
orm
atio
n sy
stem
(S
) re
quire
d to
iden
tify,
trac
k an
d m
anag
emen
t of s
tore
d an
d m
aint
aine
d w
eapo
ns s
yste
m/c
ompo
nent
s
Logistics Response Tim
eT
he p
erio
d of
tim
e fr
om lo
gist
ics
dem
and
sign
al s
ent t
o sa
tisfa
ctio
n of
that
logi
stic
s de
man
d. ‘L
ogis
tics
dem
and’
ref
ers
to s
yste
ms,
co
mpo
nent
s, o
r re
sour
ces,
incl
udin
g la
bor
requ
ired
for
wea
pon
syst
em lo
gist
ics
supp
ort.
Log
istic
s re
spon
se ti
me
as m
easu
red
by th
e ap
prop
riate
logi
stic
s pr
oces
s su
ppor
ting
the
exis
ting
syst
em. C
onsi
der
spec
ific
met
rics
or M
OE
s co
nsid
ered
to b
e pr
oble
m a
reas
or
desi
red
end
stat
e co
nditi
on, s
uch
as c
lass
IX r
epai
r pa
rts,
req
uisi
tion
date
, rec
eipt
dat
e, to
tal r
equi
sitio
ns, e
tc…
.
US
MC
Per
form
ance
Bas
ed L
ogis
tics
(PB
L) G
uide
book
; US
D (
AT
&L)
M
emor
andu
m -
Tot
al L
ife C
ycle
Sys
tem
s M
anag
emen
t (T
LCS
M)
Met
rics
date
d 22
Nov
200
5
Total ownership cost (TO
C)
Tot
al o
wne
rshi
p co
st in
clud
es th
e el
emen
ts o
f a p
rogr
am's
life
-cyc
le c
ost,
as w
ell a
s ot
her
rela
ted
infr
astr
uctu
re o
r bu
sine
ss p
roce
sses
cos
ts
not n
eces
saril
y at
trib
uted
to th
e pr
ogra
m in
the
cont
ext o
f the
def
ense
acq
uisi
tion
syst
em.
Def
ense
Acq
uisi
tion
Gui
debo
ok; D
US
D (
Logi
stic
s an
d M
ater
ial
Rea
dine
ss)
Mem
oran
dum
- L
ife C
ycle
Sus
tain
men
t Out
com
e M
etric
s, d
ated
10
Mar
200
7
$ pe
r un
it us
age
Cos
t per
uni
t U
SD
(A
T&
L) M
emor
andu
m -
Tot
al L
ife C
ycle
Sys
tem
s M
anag
emen
t (T
LCS
M)
Met
rics
date
d 22
Nov
200
5A
vaila
bilit
yA
vaila
bilit
y is
a m
easu
re o
f the
deg
ree
to w
hich
an
item
is in
an
oper
able
sta
te a
nd c
an b
e co
mm
itted
at t
he s
tart
of a
mis
sion
whe
n th
e m
issi
on is
cal
led
for
at a
n un
know
n (r
ando
m)
poin
t in
time.
DoD
RA
M G
uide
; US
D (
AT
&L)
Mem
oran
dum
-T
otal
Life
Cyc
le
Sys
tem
s M
anag
emen
t (T
LCS
M)
Met
rics
date
d 22
Nov
200
5
Logi
stic
s F
ootp
rint
The
am
ount
of p
erso
nnel
, spa
res,
res
ourc
es, a
nd c
apab
ilitie
s sp
ecifi
cally
des
igne
d an
d/or
des
igna
ted
in s
upp
ort a
nd p
hysi
cally
pre
sent
and
oc
cupy
ing
spac
e at
a d
eplo
yed
loca
tion.
The
Gov
ernm
ent/c
ontr
acto
r si
ze o
r ‘p
rese
nce’
of l
ogis
tics
supp
ort r
equi
red
to d
eplo
y, s
usta
in, a
nd
mov
e a
wea
pon
syst
em. M
easu
rabl
e el
emen
tsin
clud
e in
vent
ory/
equi
pmen
t, pe
rson
nel,
faci
litie
s, tr
ansp
orta
tion
asse
ts, a
nd r
eal e
stat
e. T
he lo
gist
ics
foot
prin
t sup
port
ing
the
exis
ting
syst
em
and
any
spec
ific
met
rics
or M
OE
s co
nsid
ered
to b
e pr
oble
m a
reas
or
desi
red
end
stat
e co
nditi
on. C
onsi
der
area
s su
ch a
s co
nsum
able
s,
ener
gy u
sage
, sup
port
equ
ipm
ent,
spar
es, e
tc…
US
D (
AT
&L)
Mem
oran
dum
-T
otal
Life
Cyc
le S
yste
ms
Man
agem
ent
(TLC
SM
) M
etric
s da
ted
22 N
ov 2
005;
US
MC
Per
form
ance
Bas
ed
Logi
stic
s (P
BL)
Gui
debo
ok
Mai
nten
ance
The
act
of m
aint
aini
ng o
r st
ate
of b
eing
mai
ntai
ned.
O
SD
CB
M+ G
uide
book
; OS
D O
S C
ost E
stim
atin
g G
uide
(O
ct. 2
007)
Pag
e 8
OSD CBM+ BCA Information Paper‐ October 2010
24
Appendix D – CBM+ Cost Elements Structure
Life Cycle Phases New System 0-10 Yrs 10-25 Yrs 25+ Yr
Development Design
Development (include both hardware & software)
Prototype
Testing & Validation
Data Management
CBM+ Services Applications
Investment System acquisition
Facilities and Infrastructure
Supply support
Test equipment
Prognostics/diagnostics services
Data Warehouse
Training
Operation & SustainmentUnit Level Manpower
Operations
Unit-Level Maintenance
Other Unit-Level
Unit Operations
Operating Material
Support Services
Temporary Duty
Data warehouse - data/software management
Facilities
Services (24/7)
Maintenance (all elements;schedule and unscheduled)
Organizational
Intermediate
Depot
Energy (fuel, petrolium, oil,electricity, etc.. )
Sustaining Support
Systems Specific Training
Support Equipment Replacement
Sustaining Engineering and Program Management
Other Sustaining Support
Indirect Support
Installation
Personnel
Personnel Admin - Acquisition and Overhead accounts
Personnel Benefits
Medical
General Training and Education
Basic & Initial Skill Training
Educational Activities
Licenses
Technical Refresh
Data warehouse
Packaging, Handling, Storage, and Transportation:
Training
Continuing System Improvements
Hardware Modernizations
Software Maintenance and Modifications
DisposalSystem Removal
Environmental Protection
OSD CBM+ BCA Information Paper‐ October 2010
25
Appendix E – CBM+ Measures of Effectiveness
Potential Benefit Areas or Measures of Effectiveness / CBM+ Effects
Metric 1. Failure Prediction
2. Holistic View of
Equipment Condition
3. Accuracy of Failure Prediction
4. Improve Reliability
5. Reduce MDT
7. Optimize Performance
Overall Benefit + or -
Maintenance ‐
Platform
MTBF, Mean time
Between Removal
(MTBR)
Mean time
Between Critical
Failure (MTBCF),
RM
x x x
Life Cycle ManagementTOC ($), Spares
requirements,
ECP requests,
x x
Operational/Squadron/Batallion/FleetTOC($), Ao, MC,
FMCx x
System Reliability RM x x
Number of no evidence of failures (NEOF) # NEOF x x
Accuracy of failure prediction Error Rate, RM x x
Effectiveness of Platform/system condition assessme RM, False alerts x
Mission reliability Ao, RM, MTBCF
Mission abort rate Ao, AM, RM x x
Combat power/platform/system availabilityQualitative, RM, Ao,
FMC, MC
x x x
Safety
Number of avoided mishaps or maintenance ris # x x
System design improvements# ECPs,
Qualitativex
Maintenance facilities usage (all levels) Cost($) x
Troubleshooting and repair action MTTR x x
Accuracy and timeliness Repair cycle time x x
Mean down time MDT, Mnhrs x x
Logistics decision process (es) Various x
Supply chain impacts
$, Asset Visibility,
Backorder Age,
Backorder Rates,
Requisition
Response Rate,
NMCS, # Contracts
x x
Asset accountability and inventory control
Asset Visibility,
Backorder Age,
Backorder Rates,
Requisition
Response Time,
Parts Turnaround
Time, Fill Rate
x x
Spare parts management
$, Asset Visibility,
Backorder Age,
Backorder Rates,
Requisition
Response Time,
Parts Turnaround
Time, Fill Rate
x x
Warehouse management Cost($) (Leased,
Purchased)x x
Logistics Footprint $, Spares x
Logistics Response Time
Class IX Repair
Parts, Requisition
Date, Total
Requisitions
x
Total ownership cost (TOC) TOC ($) x x
OSD CBM+ BCA Information Paper‐ October 2010
26
Appendix F – References
CBM+ BCA Study References
A. Condition Based Maintenance Plus DoD Guidebook ‐ May 2008
B. NDIA Final Report EHM Committee ‐ EHM Technology Transition Study October 2009
C. USD ‐ ATL Letter ‐ Performance Based Logistics (PBL) Business Case Analysis (BCA). Product Support Strategy BCA Guiding Principles ‐ 23 Jan 2004
D. USD Letter ‐ Life Cycle Sustainment Outcome Metrics ‐ 10 Mar 2007
E. The Analysis of Return on Investment for PHM Applied to Electronic Systems ‐ October 2008
F. OSD Cost Analysis Improvement Group ‐ Operating and Support Cost‐Estimating Guide ‐ October 2007
G. Army Aviation Condition Based Maintenance Plus (CBM+) Program ‐ December 2009
Additional References
Air Force Manual 65‐510, Business Case Analysis Procedures ‐ 22 September 2008
A Decision Support Model for Determining the Applicability of Prognostic Health Management (PHM) Approaches to Electronics Systems ‐ January 2005
Air Force Material Command PBL BCA Checklist ‐ 31 May 2007
Business Case Development Guide; EI Toolkit Guide Version 2.0 ‐ November 2003
Considerations for a Business Case Analysis for Serialized Item Management (SIM)
DAU Business Case Project Template Document XXX, Version 1.0
DON Memorandum for Distribution‐ 6 Nov 2007, DON Guide for Developing Performance Based Logistics Business Case Analyses (P07‐006)
DoD 5000.04–M–1, Cost and Software Data Reporting (CSDR) Manual ‐ 18 April 2007
DoD Instruction 7041.3 dated 7 November 1995 ‐ Economic Analysis for Decision Making
DoD Reliability, Maintainability, and Cost Rationale Report Manual ‐ 22 June 2009
DoDI 4151.22, Condition Based Maintenance Plus (CBM+) for Material Maintenance dated December 2, 2007
FY 2000 DoD Logistics Strategic Plan ‐ Aug 1999
MIL‐STD‐881A
OMB Circular A‐94 "Guidelines and Discount Rates for Benefit‐Cost Analysis of Federal Programs"
OMB Circular No. A‐130
PM LAV Embedded Platform Logistics System (EPLS) BCA ‐ Feb 2010
Recommended Performance Measurement Scorecard for Supply Chain Management ‐ LMI ‐ June 1999
Risk Management Guide for DoD Acquisition, Sixth Edition, Version 1.0, August 2006
Standard Operating Procedure for Cost Benefit Analysis Review Board ‐ 13 May 2010
U.S. Army Cost Benefit Analysis Guide Version 1.0 dated 12 January 2010 ‐ Assistant Secretary of the Army Financial Management and Comptroller Memorandum ‐ 1 Feb 2010
USAF High Velocity Maintenance brief ‐ Jun 2010
USAF Live‐Virtual‐Constructive Brief ‐ 20 Feb 2009
USD ‐ ATL Letter ‐ Performance Based Logistics (PBL) Business Case Analysis (BCA). PBL BCA Criteria ‐ 20 Mar 2004
USD ‐ ATL Letter ‐ Performance Based Logistics (PBL): Purchasing using Performance Based Criteria ‐ 16 Aug 2004
USD Memorandum ‐ Total Life Cycle Systems Management (TLCSM) Metrics ‐ 22 Nov 2005
USMC Performance Based Logistics Guide V 1.04 ‐ 24 Jun 2010
OSD CBM+ BCA Information Paper‐ October 2010
27
Appendix G – CBM+ BCA Reference Extracts
CBM+ BCA Extracts
1. Cost Benefit Analysis for the Army Aviation Condition Based Maintenance Plus (CBM+) Program ‐ December 2009
a. The most compelling and supportable benefits described in this Cost Benefit Analysis (CBA) are those associated with aviator safety and aviation combat power. Evidence from actual experience supports increased safety (known to have avoided Class A accidents), and the potential avoidance of numerous mishaps (9‐12% reduction). Our CBM+ program has coincided with improved readiness rates (3.7‐10.3% higher Mission Capability (MC) than non‐equipped aircraft), the ability to generate additional flying hours within the CBM‐equipped fleet, and lower mission abort rates (7‐31% depending on platform variant). The ability to use CBM equipment to record flight hours can reduce scheduled maintenance burden by 12‐22% with corresponding savings from contractor labor and maintenance test flight hours. Finally, Army Aviation CBM+ program is responsible for hundreds of small, nearly unquantifiable gains in terms of troubleshooting time, precautionary landings that did not happen, avoided unnecessary maintenance procedures, and more. All of these together represent substantial and real aid to the Aviation Soldier. (Executive Summary, page 6 of 79)
b. The Army Material Command (AMCOM) CBM+ program requires a substantial investment in terms of hardware and analytical manpower. Simply installing CBM equipment on aircraft will not instantly result in benefits and savings. It takes several years of data collection and analysis to turn the data into information and begin changing long‐established maintenance procedures that take advantage of the technology. Only in the long process to change those procedures can CBM+ demonstrate its enduring effect. However, economic modeling, combined with evidence from analysis of fleet‐wide readiness and maintenance data, reveals that CBM+ will likely have long and meaningful impact on Army Aviation maintenance and the combat power of our rotary‐wing fleet. (Executive Summary, page 7 of 79)
c. For this CBA, the following MOEs will be evaluated to facilitate the comparative evaluation of alternatives:
i. Non‐Monetary MOEs
1. Safety : % Avoidable Mishaps
2. Combat Power: % MC, % Non‐Mission Capable Maintenance (NMCM), Mission Aborts/Flight Hour
3. Maintenance Man‐hours Avoided (annually and per flight hour)
4. Maintenance Test Flights (MTFs) Hours Avoided annually
5. Number of Mandatory Time Between Overhauls (TBOs)/ Part Retirements Eliminated
6. % No Evidence of Failure (NEOF) Improvement
OSD CBM+ BCA Information Paper‐ October 2010
28
ii. Monetary MOEs
1. Reduction in Maintenance Man–Hours Costs for Inspections/Vibration Testing/Rotor track and Balance
2. Reduction in Maintenance Test Flight Flying Hour Costs
3. Reduction in Parts Replace On Condition vs. TBOs
4. Reduction in Maintenance Man‐Hours for Parts Replaced On Condition With CBM+ vs. TBOs
5. Reduction in Maintenance Man‐Hours for Manual Logging of Flight Time vs. Digital Source Collectors (DSC) Automated Flight Time Generation
6. Reductions in parts demand resulting from changes caused by difference between Manual Logging of Flight Time vs. DSC Automated Flight Time Generation
7. Costs avoided by decreasing frequency of Maintenance Test Flights due to Manual Logging of Flight Time vs. DSC Automated Flight Time Generation
8. Savings From Impact of CBM+ on Aviation Mishaps
(Paragraph IV. Measures of Effectiveness, Pages 20 – 21 of 79)
d. The AMCOM CBM+ program is pursuing software development that will allow automation, and thus elimination, of these checks. In addition, the same software will allow us to eliminate the need for annual max‐power checks on the engines. This MTF maneuver is a rather risky event, and eliminating it will be an added safety boon to the maintenance test pilot community. (Paragraph IV.4.g.viii, page 39 of 79)
e. In terms of streamline orders of high priority aviation spare parts, highly accurate prognostics on CBM‐monitored parts allow maintainers to predict when the part will fail or be replaced at scheduled maintenance and thus preorder to minimize aircraft downtime. In turn, this reduces stress on the supply system eliminating the need for high priority Class IX requisitions such as Aircraft‐On‐Ground (AOG) status. (Paragraph IV.4.i.ii, page 40 of 79)
f. CBM+ will improve the ability to conduct Battle Damage Assessment and Repair (BDAR). After an aircraft suffers combat‐ or accident‐related damage, it is often difficult to conduct accurate and complete BDAR on the system. Anecdotally, CBM technologies have improved a unit’s ability to understand the extent of damage, reduce testing/ inspection/troubleshooting time, and then allow faster repair of the aircraft for return to mission‐capable status. (Paragraph IV.4.j.ii, page 40 of 79)
g. Financially, CBM+ will pay for itself with an estimated 1.2 Benefit to Investment Ratio (BIR) over a 10 year operating period once all aircraft are DSC equipped and major CBM+ investments are executed. (Paragraph VII. Conclusions, page 51 of 79)
h. Reductions in Parts demand resulting from changes caused by difference between Manual Logging of Flight Time vs. DSC Automated Flight Time Generation
i. Costs avoided by decreasing frequency of Maintenance Test Flights due to Manual Logging of Flight Time vs. DSC Automated Flight Time Generation
OSD CBM+ BCA Information Paper‐ October 2010
29
j. Savings From Impact of CBM+ on Aviation Mishaps
2. A Decision Support Model for Determining the Application of Prognostics Health Management (PHM) Approaches to Electronic Systems – Peter Sandborn, CALCE, Department of Mechanical Engineering., University of Maryland. (Proc. Reliability and Maintainability Symposium (RAMS) Arlington VA Jan 2005).
a. The paper presents a model that enables the determination of when scheduled maintenance makes sense, and how to optimally interpret PHM results for electronic systems.
b. “Although man applicable models for single and multi‐unit maintenance planning have appeared, the majority of the models assume that monitoring information is perfect (without uncertainty) and complete (all units are monitored the same), i.e., maintenance planning can be performed with perfect knowledge as to the state of each unit. For many types of systems, and especially electronic systems these are not good assumptions and maintenance planning, if possible at all becomes an exercise in decision making under uncertainty with sparse data.“
3. The Considerations for a Business Case Analysis (BCA) supporting DoDI 4151.19, Serialized Item Management (SIM) was used an example for a this CBM+ BCA information paper.
4. Department of the Navy (DON) Memorandum for Distribution‐ 6 Nov 2007, DON Guide for Developing Performance Based Logistics Business Case Analyses (P07‐006) provides amplifying guidance and information in development of Performance Based Logistics PBL) BCAs.
5. NDIA Final Report of the EHM Committee – October 2009
6. US Air Force Material Commend PBL Checklist dated 31 May 2007
7. U.S. Army Standard Operating Procedure for Cost Benefit Analysis Review Board dated 13 May 2010. In accordance with a 30 December 2009 HQDA Memorandum, the Army has implemented a standard operating procedure for conducting and reviewing BCAs. This procedure defines the responsibilities, a process flowchart, a BCA checklist, and specific formats for BCA reports to the DASA (Cost and Economics).
8. U.S. Army Cost Benefit Analysis Guide Version 1.0 dated 12 January 2010 ‐ Assistant Secretary of the Army Financial Management and Comptroller Memorandum dated 1 February 2010. This guide provides general guidance for planning and conducting Cost Benefit Analyses.
9. USAF High Velocity Maintenance brief ‐ Jun 2010. Outlines a maintenance concept that improves “How Mx is Done” by applying standard high velocity maintenance processes, synchronized to optimize flow time; provide pre‐planned support; Point of Use tasking and mechanic centric focus to increase velocity.