# Presentation: 280339

## Cost Analysis Data Requirement (CADRe)

## Agenda

- Explain the CADRe
- Discuss project concerns
- Obtain agreement on how data will be collected and when
- Agree on PM approval process

## Background

- Nearly all NASA projects sustain cost overruns
- Cost risks are not explicitly addressed in most project estimates
- Quality of cost estimates vary
- History of projects not recorded so we have difficulty learning from the past
- When cost data are collected, they are not disseminated or made available to others

## 2004 GAO Report Findings

- 1992 GAO study of NASA cost analysis
-  29 projects; median cost growth 77%
- 2004 GAO study
- 27 projects;  median cost growth 13%
- 2004 GAO recommendations
- Develop an integrated plan including
- Guidance for rebaselining
- Enforced use of EVM
- Staff and support for cost-estimating and EVM
- Establish standard LCCE framework
- Include full life cycle
- Use a standard WBS that encompasses both in-house and contractor efforts
- Use a Cost Analysis Requirements Description (CARD)
- Develop Independent Cost Estimates (ICEs) at each milestone
- Use cost risk assessments
- Prohibit projects from proceeding through the review and approval process without above

**Hinders**

## 2004 Aldridge Commission Recommendations

- Recommended an independent cost analysis organization similar to DoD CAIGs (Cost Analysis Improvement Group)
- Independent cost estimating organization
*Maintains a corporate data base of historical project cost information*
- Uses parametric cost estimating procedures
- Recommends final cost position to approving bodies

## What is the CADRe?

- A three-part document that:
- Describes a NASA project, at a given point in time, to allow an independent entity to estimate the project’s life cycle cost (Parts A & B)
- Describes changes to the project since the previous CADRe submission (Part A)
- Captures the NASA project’s  projected and actual life cycle costs within the project’s and a NASA Cost Estimating Work Breakdown Structures (WBS) (Part C)
- The CADRe is not a project monitoring tool for external organizations

## Why Are CADRes Needed?

- Provides approved basis for independent estimates
- Describes project mission and approach that facilitates understanding
- Explicitly addresses risk areas
- Contains objective technical data that tend to drive costs
- Documents reasons for cost and schedule growth so that agency can better explain to stakeholders
- Provides historical record of cost, schedule, and technical project attributes so that estimators can better estimate future similar projects
- Required by NPR 7120.5

## When are CADRes Required? 

**When are CADRes Required? **

**AO-Driven**
**Projects**

**Traditional**
**Waterfall**
**Development**
** ****or Directed**
**Missions**

**Flight Projects**
**Life Cycle **
**Phases**

**Pre-Phase A**:
- Concept
- Studies

**Phase A:**
- Concept
- Development

**Phase B:**
- Preliminary Design

**Phase C:**
- Detailed Design

**Phase D:**
- Fabrication,** **
- Assembly & Test

**Phase E:**
- Operations &
- Sustainment

**Phase F:**
- Disposal

- CR

- 2

- 1

- Select Step 2

- Down
- Select
-  Step 1

- CDR

- Launch

- 3

- 3

- 4

- 4

- _Legend_

- GPMC Mission Decision Review/ICR

- All parts of CADRe due 30 days after site review

- CADRe delivered; based on Concept Study Report (CSR) and  winning proposal

- 4

- CADRe, All Parts
- 90 days after launch,
- as built or as deployed configuration

- CADRe, Part C only during
- last year of planned project life

- 3

- Update as necessary
- 30 days after CDR

- 1

- 2

- 5

- 5

- 5

- 1a

- CADRe update, if necessary

- 2

- CADRe update, if necessary

- 1

- 1a

- 2a

- 2a

- 2a

- 1

- All parts of CADRe due 30 days after site review

**Notes:**
Decision Points are:  Interim Confirmation Reviews and Mission Confirmation Review ; Depends on the mission; both follow the P-NAR/SRR-PMSR-ISR and PDR/NAR -MCR

Minimize impact to Project Office for each collection point:
  In time for Pre-NAR(SRR/PMSR) and NARs (PDR)
  After CDR and Launch

CADRes developed from readily available information
  AO Missions - Concept Study reports and proposals at Pre-NAR;
  Directed missions -  from available documentation
PDR presentations, MELs, project schedules, project cost estimates for confirmation review CADRe
CDR presentations, updated MELs, refined schedules, updated cost estimate and collected actual costs for the CDR CADRe
Launch Readiness Review documents, updated estimated and actual cost reports for Launch CADRe

## How Will the Data Be Used?

- Prepare more realistic cost and schedule estimates from analogous data contained in the CADRes;
- Assess proposed project schedule in light of performance of similar past projects; recommend adjusted schedule and costs to PMC;
- Assess extent to which heritage percentages are achieved; adjust estimates accordingly;
- Assess software development productivity of historical data; adjust estimates accordingly;
- Assess software reuse; adjust estimates accordingly;
- Assess software code growth; adjust estimates accordingly; and
- Analyze reasons for cost growth
- Provide better answers to OMB and Congress
- Develop policy strategies to rectify

## How Will the CADRes be Developed?

- NASA PMs are responsible for CADRes per NPR 7120.5
- Process starts with kickoff meeting with PM
- PA&E is paying for development and PM approves
- Developing CADRes only for projects launched after 1995
- Current development priority
- Projects under development with a milestone review during the FY where an ICE is due
- SRR (P-NAR)
- PDR (NAR)
- Projects that will launch during the FY
- Past projects
- Launch
- SRR
- End of Mission (EoM)
- PDR
- CDR

## How Will the CADRes be Developed? (Concluded)

- PA&E/CAD conducts kick off meeting with Program Exec, Project Manager & staff, Mission Directorate Cost Focal Point, & IPAO cost analyst)
- Explain nature of requirement and expectations
- Agree how CADRe will be developed
- If performed by support contractor, determine how data will be provided
- Access provided on web site or provided directly
- Agree on RFP language or DRD (“active projects only”)
- Support contractor develops CADRe from supplied data
- Center staff or PA&E reviews for compliance with CADRe templates; developer revises as necessary
- Support contractor submits to PM for approval; developer revises as necessary
- PM signs and forwards to Mission Directorate
- For SMD, Claude Freaner monitors, coordinates with PEs, and submits to PA&E/CAD
- For ESMD, Arlene Moore monitors, coordinates with ESMD management, and submits to PA&E/CAD
- PA&E (thru support contractor) enters CADRE into One NASA Cost Engineering Database (ONCE)

## CADRe Data Collection Process 

**CADRe Data Collection Process **

**CADRe Data**
**(ONCE)***

**PM Cost **
**Repository**

**NASA **
**Accounting**
**Database**

**PM’s Systems**
**Engineering**
**Repository**

- Project
- Manager

- PA&E/CAD
- Reviews

- MD
- Reviews &
- Approves

- CAD Accepts
- & Stores

- Cost, technical
- & program data

- Cost estimates
- & actuals

- NASA
- EVM data

- MELs & other SE
- documentation

- Cost estimates
- & actuals

- CADRe

- CADRe

- CADRe

- CADRe

- Technical &
- Program data

- CADRe

- CADRe
- comments

- * One NASA Cost Engineering Database (ONCE)

- NF 533 &
- EVM data

## Who Will Have Access to CADRes?

- Developed CADRes to date are all contained on CDs and in the possession of PA&E/CAD
- ONCE Access Rules
- HQ personnel will have access to all CADRe data
- NASA center personnel will have access to
- Only their own pre-launch CADRe data
- All CADRes after missions have been launched

## Data Collection Agreements

- PM POC
- Data sources
- Data access
- Development and approval schedule
- Contracting language and/or DRD

## Points of Contact

**  ****NASA**
- 	Tom Coonce
- 	(202) 358-4905 (O)
- 	(202) 379-8754 (M)
- 	Eric Plumer
- 	(202) 358-5178(O)
- 	202 420-0970 (M)
-   **SAIC**
- 	Michael Copeland
- 	(256) 705-8533 (O)
- 	(256) 457-4780 (M)

**  ****Aerospace**
- 	Debra Emmons
- 	(626) 395-7017 (O)
- 	(310) 418-7892 (M)
-   **MCRI**
- 	Raymond Covert
- 	(703) 378-2074 (O)
- 	(703) 625-1867(M)
- 	Larry Wolfarth
- 	(571)-216-2224 (O)