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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 MARCH 2014 This page intentionally left blank Contents 1. INTRODUCTION .. 1- 1 Purpose .. 1- 1 Applicability .. 1- 1 Overview .. 1- 1 2. OVERVIEW OF LIFE-CYCLE COSTS .. 2- 1 Life-Cycle Cost Categories .. 2- 1 Life-Cycle Cost Category Definitions .. 2- 3 Life-Cycle Cost Categories and Budget Appropriations .. 2- 5 3. ROLE OF O&S COST INFORMATION .. 3- 1 Introduction .. 3- 1 O&S Cost Information and Program Decision Points .. 3- 1 Trade-Off Studies .. 3- 4 Analysis of Alternatives .. 3- 5 Affordability .. 3- 6 Early Influence on System Design.

• Appendix C provides a sketch of an analysis that may be performed to determine if a current aging system experiencing increasing O&S costs should be replaced with a new comparable system, or else upgraded in order to defer

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