Estimating each requirement will give the program manager many benefits. He will be able to identify the criticality, the cost and schedule impact, and the priority of each requirement. The program manager will be able to do requirement trade-offs, selecting the combination of requirements that are affordable and necessary. Requests for more functionality of the program after the program is baselined will be able to be followed-up with an estimated cost for implementation. Lastly, requesters for more requirements will be furnished with a cost estimate to implement, thus allowing the lowest level in the organization the ability to do value analyses and trade-offs.
Cost analysis needs to be conducted at the approval of each phase of software development.
A cost to complete estimate, together with new schedules, needs to be calculated to determine, overall, if there are any problems with the project. If there are problems, the program manager can take appropriate actions to remedy the situation. This process should be explained to prospective contractors during a cost instruction pre-proposal conference. Explaining what the Government wants in terms of how the evaluation will be conducted will surely help contractors prepare proposals. Explaining how the Government will rely on cost analysis to manage the program will preclude optimistic forecasts.