Manpower cost Estimating Tool for Enhanced Online Reporting (METEOR)
Acquisition of major weapons systems requires an assessment of the program operating and support (O&S) costs. The largest O&S cost contributor is in the area of Manpower, Personnel and Training. To improve the quality of Total Ownership Cost estimates, the Navy recently released a new manpower estimating database/model to help cost analyst capture both the direct and indirect costs associated with Manpower, Personnel and Training.
The Navy cost community has a long history of studying manpower costs in new acquisition programs. Since the “Cost of a sailor” study in 1995, the Navy has sought to develop a capability to help identify both direct and indirect manpower costs. Until recently, the Cost of Manpower Tool (COMET) was the single source for estimating manpower costs. COMET uses historical billet cost data to estimate direct manpower costs. The real contribution of the model was its ability to capture and estimate variable indirect manpower costs. When direct and variable indirect costs are captured a more accurate cost benefit analysis can be accomplished.
As a result of changes in military benefits, health care, and retirement, the cost estimating relationships used in COMET has become sorely outdated. The Naval Center for Cost Analysis embarked on an effort to revise and update the direct and indirect cost relationships found in the old database/model. This new database/model, called Manpower Cost Estimating for Enhanced Online Reporting (METEOR) is a cost estimating tool that uses actual military manpower pay augmented with historical budgeting data that spans from 1975 to 2008.
This paper seeks to explore the concepts used in the new database/model for estimating manpower, personnel and training costs on ship platforms. It discusses the strengths and weaknesses of using actual manpower return costs compared to the Department of Defense Military Personnel Composite Standard Pay and Reimbursement Rates, otherwise known as forward pricing rates for estimating direct costs. Most importantly, this paper discusses how indirect cost factors used in the original “Cost of a sailor” study have changed as a result of an more recent historical data. Finally, the paper outlines the model enhancements in terms of 5 major areas:
1) Model scenario parameters; 2) Cost elements; 3) Manning document preparation;
4) Life cycle cost (LCC) analysis; and 5) analysis capabilities.
Thomas Demas is Deputy Program Manager for Ships and Military Personnel on the Navy Visibility and Management of Operating and Support Costs (VAMOSC) program. This program is managed within the Naval Center for Cost Analysis (NCCA), Office of the Deputy Assistant Secretary of the Navy for Cost and Economics. The program is responsible for collecting and reporting U.S. Navy historical weapon system operating and support (O&S) costs.
From April 2008 to November 2006, Mr. Demas worked in the Office of the Chief of Naval Operations as the Deputy Branch Head for Force Structure and Integrating. Within this role, he actively participates in the major program and warfighting assessments in support of the Navy’s Program Objective Memorandum (POM) process.
Prior to 2006, Mr. Demas worked at the Naval Sea Systems Command in various positions including, Deputy Director for Programs, Assessment and Evaluation (PA&E), Program Manager of the National Shipbuilding Research Program (NSRP), Deputy Program Manager for Inactive Ships, Special Assistant for acquisition reform, and Assistant Project Manager for the AGOR-23 Class Oceanographic Research Vessels.
Mr. Demas graduated from Old Dominion University in 1983 with a Bachelor of Science degree in Civil Engineering and from Averett University in 1992 with a Master in Business Administration. He is a graduate of the Defense Systems Management College Program Managers Course, certified in Program Management and Financial Management. He served as an OPN Legis fellow on the personnel staff of Congressman John Spratt.
Anupam Kumar is an experienced data management consultant, with several years of consulting in the areas of business intelligence, statistical modeling and data quality management. He has led teams of business representatives, information systems staff, and consultants through all aspects of systems implementations and through several complete project lifecycles.
He is currently the Service Area Leader for IBM’s Government Supply Chain Planning group with responsibility for all Staff, Financials, Delivery excellence and Administration activities for this 70 person group. Additional responsibility includes development and deployment of supply chain solutions in the areas of supply chain performance management, advanced planning and scheduling, and strategic planning.
Technical Manager, Oct. 2003 to Jan 2007, Navy VAMOSC – Mr. Kumar was the Technical Manager for the US Navy, Visibility and Management of Operating Support Costs data warehousing program. He was responsible for managing an outsourced environment providing data management services, application management services, infrastructure management services and web based application development services.
In addition, Mr. Kumar has worked with the USAF BRAC program on their planning and programming module, he has served as the data quality manager on the EPA Clean Water Needs Survey program, developed a funds payment/tracking module for construction projects executed by Metropolitan Washington Airports Authority, developed an ordnance tracking module for the US Navy cleanup effort on the island of Kaho’olawe and managed new construction efforts at a water and waste water treatment facility serving a township of 800,000 people.
Mr. Kumar graduated with a Bachelor of Technology in Civil Engineering from Indian Institute of Technology, Kanpur, India in 1993 and a Master of Science in Environmental Engineering, from Oklahoma State University, Stillwater, OK in 2000. Mr. Kumar also, obtained a Master of Science in Statistical Science, from George Mason University, Fairfax, VA in 2006. He graduated from the Project Management Institute and is certified PMP, 2005
Prior to IBM, Mr. Kumar has worked for PricewaterhouseCoopers LLP, Fairfax, VA, from July 2000 to October 200; Parsons Engineering and Science Inc., Fairfax, VA, Sep. 1997 to July 2000; and Tata Steel, India, July 1993 to Dec. 1995