Logistics Requirements Funding Summary (LRFS) Cost Estimating Tool (CET): A Quick Cost Estimator for Logisticians
Similar to 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 Suite (CETS) 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 straw-man 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.
This paper will explain the challenges faced in developing an Excel-based, parametric modeling centric, quick cost estimating tool and how these challenges were addressed. This paper addresses how the collection of input parameter settings were appropriately characterized to fit the program’s supportability strategy and how the tool is designed to walk the user through LRFS development process. Secondly, we address how the tool is automated so that a non cost estimator will not be overwhelmed with cost estimating jargon. Finally, we address the challenges associated with developing the Cost Estimating Structure of the different LRFS modules and developing the CERs, rates and factors for the different types of commodities and program types.
Booz Allen Hamilton
Mr. Gu has over 14 years 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 joint Booz Allen Hamilton’s Economics Business Analysis team in 2005 as an Associate serving 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. Gu’s recent projects include Joint Light Tactical Vehicle Program Office Estimate, Joint Mine Resistance and Ambush Protected Systems 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.
Booz Allen Hamilton
Mr. John Ko attended the Graduate School of Industrial Administration (now known as the Tepper School of Business) at Carnegie Mellon University to earn his MBA in Operations Research, Finance and Information Systems. Since earning his MBA, Mr. Ko has over seven years of experience in supporting the US Army and the United States Marine Corps as a Cost Estimator.
Mr. Ko joined the Ground Vehicle Team of the Weapons Systems Division of ODASA-CE as an Operations Research Analyst. At ODASA-CE, Mr. Ko developed Life Cycle Cost Estimates (LCCEs) for the Stryker Program and Future Combat Systems and represented ODASA-CE in reconciling of LCCEs developed.
Mr. Ko joined SAIC where he continued to support ODASA-CE. At SAIC, Mr. Ko developed and updated LCCEs and Cost Analysis Requirements Documents (CARD) for U.S. Army and joint ground vehicle programs. Mr. Ko also developed various Cost Estimating Relationships (CERs) and cost estimating methodologies for a variety of ground vehicle technologies. These included developing cost models to estimate the production costs of Active Protection Systems (APS), ammunition autoloader systems, UGVs, Hybrid Electric Drive systems, MRAP Vehicles and band track systems. Mr. Ko also developed CERs to estimate the O&S cost impact associated with the weight gain that vehicles experience as they are upgraded and when add-on armor is added to vehicles.
At Booz Allen Hamilton, Mr. Ko supported USMC program offices such as PM AAVS, GCSS-MC and AC LCL. Mr. Ko developed the LCCE and CARD for the AAV SCE and I-UGWS upgrades. Mr. Ko also developed the LRFS for the GCSS Program Office and developed the LRFS Cost Estimating Tool to support AC LCL by identifying the cost elements and cost models needed for the logistics modules in the tool.
Mr. Ko is currently a SCEA Certified Cost Estimator/Analyst (CCE/A) and has obtained the DAU Business Cost Estimating and Financial Management (BCEFM) Contractor-Equivalent of Level III Certification.
Booz Allen Hamilton
Mr. Eden has a Bachelors degree in Economics from Virginia Tech. He has previous experience with Computer Network Administration, as well as analysis on projects involving U.S. Navy Seabasing, U.S. DOT Advanced Train Development, U.S. DOT Bridge and Tunnel Security Technology Analysis, and International Transportation Technology Acquisition and Usage Analysis. He has worked as an analyst with Booz Allen Hamilton for over 2 years. In that time Mr. Eden has supported the Joint Light Tactical Vehicle (JLTV) Program, DISA Defense Information Systems Network Diversity (DISN) Program, USMC Amphibious Assault Vehicle (AAV), and USMC Internally Transportable Vehicle (ITV) Program. He has contributed to Life Cycle Cost Estimates (LCCE), formulation of Cost Analysis Requirements Descriptions (CARD), and Model Development.
Booz Allen Hamilton
Mr. Pryor was born in Milwaukee Wisconsin, and raised in both Chicago, IL and Raleigh, NC. He has a Bachelor of Arts degree in Economics from Virginia Tech. He has worked as a Cost Analyst with Booz Allen Hamilton for 2 years. In that time Mr. Pryor has supported the Joint Light Tactical Vehicle (JLTV) Program, USMC High Mobility Multi Wheeled Vehicle (HMMWV) Optimization Study, Expeditionary Test, Measurement, and Diagnostic Equipment (TMDE) Maintenance System (ETMS), and Active Protection Systems (APS) Market Research. He has contributed to Life Cycle Cost Estimates (LCCE), assisted with the development of Program Objective Memoranda (POM), modeled risk, and created Logistics Requirement Funding Summaries (LRFS.) Mr. Pryor has also worked with the Social Entrepreneurship Assistance Program helping to develop growth plans for the Hip-Hop oriented Youth Development Program Words, Beats, and Life (WBL.) Work with WBL involved helping develop budget tools for the program’s academy, journal, and organization incubator. His professional experience outside of Cost Analysis includes Kitchen Management and Tutoring.
Booz Allen Hamilton
At Booz Allen Hamilton, Mr. Cain supports the Defense Business Segment’s Economics and Business Analysis (EBA) Team, providing economic, acquisition and cost analysis support within the United States Marine Corps market.
Mr. Cain has over 6 years’ experience in leadership, operational planning and execution, logistics support planning and execution, decision analysis, project management, loss analysis (focused improvement), and business process improvement.
Prior to Booz Allen, Mr. Cain worked for the Quaker, Tropicana and Gatorade (QTG) division of PepsiCo where he specialized in Inventory Control, business process and process-controls improvement. As a Loss Analysis Lead within Warehousing and Distribution Operations, Mr. Cain led focused improvement efforts for a 2.5M Square-Foot distribution center, and contributed to network-wide supply chain process-improvement efforts. Mr. Cain mapped current-state operational process to actual costs, and targeted improvement opportunities based on estimated cost reductions. Mr. Cain facilitated network-wide business-process modifications within the QTG supply chain; eliminated redundancy and capitalized on systems’ capabilities, paving the way for the eventual centralization of multiple role-based activities and overhead reduction. Additionally, Mr. Cain laid the groundwork for an 8% total cost reduction over three years – based on analyses of distribution center operations.
Prior to his work with QTG, Mr. Cain served the United States Army as an Infantry Officer assigned to Ft. Bragg North Carolina, with operational deployments to both Afghanistan and Iraq. He led various teams ranging in-size from 5 to 230, responsible for various collective actions ranging in-scope from the execution of deliberate combat operations to executing detailed staff analyses. He is a graduate of multiple US Army Service Schools, including the Infantry Officer Basic Course and US Army Ranger School.
Mr. Cain has a B.A. in Business/Economics from Wheaton College in Illinois.