Analysis of Large O&S Proposal: Lessons Learned!

Life Cycle Cost Track 


LC-4 – Presentation – System Utilization An Indepth Method of Modeling and Measuring Military Manpower Costs

LC-4 – Handout – System Utilization An Indepth Method of Modeling and Measuring Military Manpower Costs


Recently, a $20M contract was awarded for weapon system O&S. The contractor’s proposal was subjected to technical evaluation and extensive negotiations ensued. Over 100 BOEs were evaluated for multiple CLINs. Proposal cost components were labor, materials and ODCs. This presentation will focus on how a final agreement was reached, focusing on: 1) Proposal construction, what are CLINs, BOE’s and how sub-contractor work was credited, 2)
BOE technical evaluations, the delineations and weighting of on-site and offsite work, 3) Forward price rate agreements, what they are, and the difference between them and final negotiated labor rates, 4) Cost to price calculations, how they are performed and what are Fringe, G&A, Overhead, Fee and Cost of Money and 5) How final contract price and weapon system CONOPS cost estimate compared.


James Linick
James Linick has a BS in Industrial Engineering from the University of South Florida. James started his engineering career as an installation engineer for Trident missile fire control aboard Trident submarines, phasing into a software engineer for the Trident stellar guidance system. His interest in software engineering enabled him to pursue a systems and software engineering career for more than 25 years. James frequently participated in working groups for development of costs and schedules for major weapon systems. In 2009, James formally entered the cost estimating and analysis profession. He worked directly with the Air Force Cost Analysis Agency, reporting to the Information Technology and Aircraft O&S division technical leads. James prepared non-advocate cost assessments, independent cost estimates and built complex cost models. James is currently a contractor, working for the Missile Defense Agency, as an O&S lead cost estimator. His responsibilities are to build and maintain cost models and prepare cost estimates to support executive reviews, budget requests, systems test and contingency operations.