Standardizing the Cost Technical Baseline – Template and Tutorial
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Over the last four years, the Department of Defense (DoD) cost community has experienced changes in cost policies, regulations and implementation procedures. Decision makers want more insight into cost estimate development, improvements in estimate quality, and a better understanding of program changes that affect funding levels. As managers of cost estimators, it is our responsibility to provide guidance on how these changes impact our analysts in the program offices.
In FY10, the AFPEO Battle Management Directorate at the Electronic Systems Center (ESC), Hanscom AFB recognized the need for more standardization across the cost estimating process to meet these goals. As ACAT II/III programs went into cost reviews, it was recognized that the cost technical baseline, a key product in the program office estimate (POE), was not standard across the estimators and key cost information was often missing. As one of Battle Management’s Cost Improvement Initiatives, a joint Government-Contractor team met regularly to develop a standardized cost technical baseline template and training materials for the Directorate. The process is now being used by over 30 estimators in the Directorate and has helped to standardize the quality assurance and sufficiency review process.
The purpose of the template is to:
• Provide a practical approach to developing cost technical baselines
• Provide examples of the type of information required and where to get the information
• Allow for customized for individual program requirements
• Track and implement cost estimating policy changes
• Improve project management skills of cost estimators/task leads
The SCEA 2011 presentation will provide cost estimators with an overview of the Cost Technical Baseline template that is being used in the Battle Management Directorate so they re-use it and tailor for their organizations.
AFPEO Battle Management Directorate (ESC/HB)
Ms. Diane Butler is the C4I Technical Director of Cost Estimating at MCR Federal, LLC and currently the Specialized Cost Services Cost Manager for the Battle Management Directorate at the Electronic Systems Center, Hanscom Air Force Base, Massachusetts. Ms. Butler oversees a multi-company contractor team of twenty-seven estimators who provide cost estimating, analysis, research, and earned value management support for some of the Air Force’s mission critical C4ISR programs including the E-3 Airborne Warning and Control System (AWACS/AEW&C), E-8 Joint Surveillance and Target Attack Radar System (JSTARS), the Multi-Platform Radar Technology Insertion Program (MP-RTIP), and Global Air Traffic programs. Ms. Butler earned a BA in Quantitative Economics (cum laude) from Tufts University, Advanced Study Program in Statistics and Economic History at the London School of Economics and an MSEM in Engineering Management from Tufts University Engineering School. Ms. Butler has supported cost analysis, estimating, and earned value management for both Navy and Air Force Programs for over thirteen years and was awarded both the New England Chapter and National SCEA Award for Management in June 2007
Major Jason Newman
AFPEO Battle Management Directorate (ESC/HB)
Major Jason B. Newman is Cost Chief, Battle Management PEO and is assigned to Electronic Systems Center, Air Force Materiel Command (AFMC), Hanscom Air Force Base, Massachusetts. He is responsible for all cost estimating activities associated with the $8B Battle Management PEO portfolio. Major Newman enlisted in the Air Force in 1991 and was commissioned a second lieutenant in August 1999 after completing Officer Training School. He began his comptroller career as Deputy Chief, Financial Services at Wright-Patterson Air Force Base, Ohio. Major Newman has served as a Financial Management Officer, F-16 Systems Program Office, Wright-Patterson AFB, Ohio, as well as Deputy Chief of Financial Analysis Flight and Financial Services Flight Commander, 62nd Comptroller Squadron, McChord Air Force Base, Washington. Prior to his current position, he was the Chief of Cost for the 551st ELSG, as well as the 551st ELSG Deputy Chief Financial Officer, Hanscom AFB, Massachusetts. He has deployed twice in support of Operation Iraqi Freedom/Enduring Freedom/New Dawn. He has held positions in financial services, financial analysis, and cost estimating. Major Newman’s accomplishments have been recognized with the awarding of several decorations including the Meritorious Service Medal, the Joint Services Commendation Medal, the National Defense Service Medal, the Global War on Terrorism Expeditionary Medal and the Global War on Terrorism Service Medal. Major Newman, among his numerous achievements, was also recognized and honored with the Financial Services Office of the Year Award, Air Mobility Command in 2004 and the Military Cost Estimator of the Year, Air Force Materiel Command in 2007. Major Newman has been a Certified Defense Financial Manager since 2006 as well as a Professional Cost Estimator/Analyst since 2009. Major Newman earned a BS in Management (with distinction) from Park University and a Masters of Business Administration from Naval Postgraduate School. He is APDP Level III certified in Financial Management and APDP Level I certified in Program Management.