2012-MMT111

United States Marine Corps Logistics Requirements Funding Summary (LRFS) Cost Estimating Tool (CET) – A Quick Cost Estimator for Logisticians Part II

Methods and Models I Track

MMT111_Presentation_USMCLogisticsRequirementsFundingSummaryCostEstTool-AQuickCostEstforLogisticiansPart2_Gu

MMT111_Paper_USMCLogisticsRequirementsFundingSummaryCostEstTool-AQuickEstforLogisticiansPart2_Gu

Abstract:

Similar to a Life Cycle Cost Estimate (LCCE), the Logistics Requirements Funding Summary (LRFS) captures Integrated Logistics Support (ILS) related costs for a program throughout its life cycle. The LRFS provides visibility into the logistics requirements of a program which is needed during Program Objectives Memorandum (POM) and budget submissions. Additionally, it helps to plan and quantify requirements, identify and defend funding, and serves as the ILS input to the LCCE.

The effort to improve the accuracy and fidelity of the logistics-related cost elements and disciplines for the LRFS is particularly challenging for logisticians because many logisticians do not understand the cost estimating principles needed to develop an LRFS. While logisticians can answer supportability requirements associated with the program, they are not trained to provide cost estimates associated with these requirements. Furthermore, logistics related cost data are seldom available in the early stages of the program’s life cycle making it difficult to develop a comprehensive LRFS. The LRFS Cost Estimating Tool (CET) attempts to remedy that situation by developing a quick cost estimating tool designed specifically with non-cost estimators in mind. The tool excels in providing a rough order of magnitude (ROM) cost estimate summary for programs in their early life cycle by guiding the users to address some of the essential questions as related to the logistics aspect of the programs.

Booz Allen Hamilton recently completed a two-year-long effort in developing the LRFS CET for its Marine Corps client. This presentation builds upon a presentation presented at the last year’s SCEA conference. Unlike the last year’s presentation which primarily focused on the challenges of developing the tool and a conceptual framework in response to those challenges, this presentation will reveal, for the first time, to the audience outside the Marine Corps, the full capability of the tool through live demonstration. Specifically, the LRFS CET Development Team will demonstrate the front end design of the tool in terms of the tool interfaces, help and reporting features. The Team will then demonstrate the back end of the tool in terms of cost model creation, selection and ranking of those models to meet program unique requirements. The Team will share with the audience the lessons learned from the tool testing events and how testing helped improve the performance of tool. Finally, the LRFS CET Development Team will demonstrate how a Booz Allen proprietary Excel-based risk tool was seamlessly integrated into the LRFS CET. In addition to the presentation, a complete LRFS CET Study Report, which details the tool development process, methodologies and results, will be provided as the companion paper to the presentation.

Author:

Charles Gu
Booz Allen Hamilton
Mr. Gu has over 15 years of experience in providing economic, acquisition, and cost analysis support including the analysis of program requirements, alternatives, and constraints. In addition, Mr. Gu has a detailed understanding of cost accounting, capital budgeting, business process reengineering, project management, earned value analysis, risk analysis and statistical/quantitative modeling. He was the recipient of the USMC Commander’s Honorary Team Award for Excellence in Operations Research/Systems Analysis in 2006 and 2009. Mr. Gu joined Booz Allen Hamilton’s Economics Business Analysis team in 2005 and is a Lead Associate in the United States Marine Corps market. Mr. Gu is currently serving as technical manager for the LRFS Cost Estimating Tool Suite project and is responsible for the management of outputs, models, and all associated documentation supporting decisions. Mr. Gus recent projects include Joint Counter Radio Controlled Improvised Explosive Device (RCIED) Electronic [JCREW] Program, Joint Light Tactical Vehicle (JLTV) Program Office Estimate, Joint Mine Resistance and Ambush Protected Systems (MRAPS) LRFS and M1A1 Service Life Extension Program Trade Study. As cost lead, Mr. Gu is responsible for providing cost analysis guidance, development of the approach, incorporating best practices and recommending the best solution for the DoD acquisitions programs.
Prior to Booz Allen Hamilton, Mr. Gu worked at Science Applications International Corp. (SAIC) from 1998 to 2005. Mr. Gu conducted numerous studies and cost analyses for both
private and public sectors. Prior to his work at SAIC, Mr. Gu worked at VSE Corp from 1995 to 1998. As cost analyst, Mr. Gu provided project control and financial analysis in support of the Field Artillery Ammunition Support Vehicle System Technical Support Contract. Mr. Gu received a B.S. degree (1995) in Finance from the George Mason University and an MBA degree (2003) in Emerging Technology from the George Washington University.