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OPERATING AND SUPPORT COST-ESTIMATING GUIDE

OPERATING AND SUPPORT . COST-ESTIMATING GUIDE . OFFICE OF THE SECRETARY OF DEFENSE. COST ASSESSMENT AND PROGRAM. EVALUATION. SEPTEMBER 2020. This page intentionally left blank. Contents 1. INTRODUCTION .. 1. 1. Applicability .. 1. 1. 2. OVERVIEW OF LIFE-CYCLE COSTS .. 3. Life-Cycle Cost Categories .. 3. Cost Categories as a Percentage of Life-Cycle Cost .. 4. Overview of O&S Cost Scope and Definitions .. 6. 3. OSD COST ELEMENT STRUCTURE .. 7. Introduction .. 7. 9. 4. DIFFERENT METRICS OF O&S COSTS .. 19. Introduction .. 19. O&S Cost Categorizations .. 19. O&S Cost Metrics .. 25. 5. ROLE OF O&S COSTS .. 33. Acquisition Milestone and Other Reviews .. 33. Sustainment Reviews .. 34. Other Roles of O&S Cost Estimates and Analyses .. 34. Selected Acquisition Report .. 34. 6. SOURCES OF O&S COST DATA .. 37. VAMOSC Program .. 37. Cost Reporting for Sustainment Contracts.

Support (ICS) or Contractor Logistics Support (CLS) as cost elements. It is intended that in cost estimates, the analyst will distribute any contractor sustainment costs to the appropriate functional cost element such as depot maintenance or sustaining/systems engineering. However,

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