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DOD COST ESTIMATING GUIDE - OSD CAPE

DOD COST ESTIMATING GUIDE Version OFFICE OF THE SECRETARY OF DEFENSE Cost Assessment and Program Evaluation December 2020 2 FOREWORD In an environment of growing threats, competing priorities, and fiscal pressures, the Department of Defense (DoD) must spend the DoD budget on the right things, in the right amounts, at the right time. DoD cost analysts play a critical role in this by producing cost estimates that support the planning, programming, budgeting, acquisition, and requirements generation processes. The cost ESTIMATING community of ~1500 government analysts supports an annual budget of more than $700 billion, with 160 major weapons systems and information systems, countless smaller acquisition programs, and ongoing generation of requirements for future capabilities.

estimating community to do every day, albeit in a highly structured and disciplined way. Whether a new cost estimator or seasoned analyst, this guide will assist with projects and analyses so that the cost estimating community will continue to provide leaders and decision makers with relevant assessments and sound recommendations.

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