2013-M214

Applying Cost Analysis to the DoDAF

Methods and Models II Track

M2-14_Presentation_ApplyingCostAnalysisToTheDoDAF_Butterworth

Abstract:

Cost analysts in the aerospace community today are being challenged to accurately estimate new and on-going program efforts that will be integrated into the Department of Defense Architecture Framework (DoDAF). The DoDAF provides a foundational framework for developing and representing architecture descriptions that ensure a common denominator for understanding, comparing, and integrating architectures across organizational, Joint, and multinational boundaries. It establishes data element definitions, rules, and relationships and a baseline set of products for consistent development of systems, integrated, or federated architectures.

In the past cost analysis has been performed individually on a program by program basis ignoring the multi-dimensional data point intersects and their interactions between systems. Now all major programs are required to perform Analysis of Alternatives (AoA) within the DoDAF structure. While the engineering community has been vigorously analyzing and applying the DoDAF concept, the cost community has been falling behind. The engineering community has software in place to comply with DoDAF. Software such as Systems Modeling Language (SysML), Enterprise Architect, and System Architect are intended to focus program management on potential issues within a SoS analysis.

However, current analysis with existing tools and methodologies do not apply cost analysis satisfying the recently released Better Buying Power (BBP) 2.0 directives, which require a commitment to reducing costs and increasing productivity, dedication to supporting the Warfighter, and a strong sense of stewardship of the taxpayers’ dollars.

The current DoDAF engineering software does not provide insight into system relationships from a cost perspective. Because of this, while engineers are efficiently assessing AoA within the DoDAF structure, the requisite cost analysis has become inefficient and its usefulness has been limited to after the fact support. The question is, “Can the analysis of cost be applied within the AoA and DoDAF structures currently being performed to integrate the cost impact within the decision making process?”

This paper presents a structured process for a potential solution—a process by which management, engineers and cost analysts can evaluate 1) trades from a management, technical, and cost perspective to minimize costs, 2) identify the interactions between the multi-dimensional data point intersects in DoDAF to assess best value within FoS/SoS frameworks (e.g. using a Pareto Frontier), 3) use to be developed cost algorithms to generate real time what-if analysis of the costs, and 4) access cost driver capability that drive requirements to provide effective solutions to the Warfighter’s needs satisfying the goals of Better Buying Power.

Author:

Michael Butterworth
TASC Inc.
Mike Butterworth is currently in the TASC Inc. Financial & Business Analytics Center of Excellence (FBA COE) serving as the West Coast Cost Analysis Lead. He provides support, training and development expertise for projects with government and industry. Mike has 30 years of experience in finance, estimating, cost analysis, and cost proposal development. Prior to TASC Inc. he was with Galorath Inc. for 5 years helping customers initiate SEER estimates and training new SEER users in the hardware and software products. He was with Research & Development Laboratories (RDL) for two years supporting the TRW SBIRS Low program. Before that he was with EER Systems supporting SMC/FM and program offices. Mike also started Launch Security Systems International Inc. providing physical security for foreign launches of our US Commercial satellites in China and Russia. To start his cost analysis career he spent 21 years at Hughes Aircraft Company in the Space and Communications Group, the last eleven years as Manager of Financial and Cost Analysis for Government new business.
His cost analysis background includes satellites (comm, sensor, other), launch vehicles, ground stations, aircraft (fighters, bombers, UAV, other), missiles and miscellaneous other product types. Mike has performed analysis and provided training for contractors and government organizations such as SMC/FM, NASA, AFCAA, SMC program offices and others.
Mike has a Bachelor of Science in Accounting from California State University, Long Beach. He is a member of the newly formed ICEAA.