FOR THE INTEGRATED OPERATIONAL NUDET DETECTION SYSTEM GLOBAL SEGMENT (IGS) USER SUBSEGMENT (U) Prepared by: Ford Aerospace & Communications Corporation Western Development Laboratories Division IGS-LCC-1 Cte vad Code Ident 07868 > LIFE CYCLE COST ESTIMATION REQUIREMENTS 1 October 1982 L Prepared for: SPACE DIVISION/AFSC/YE P.O. Box 92960 Woridway Postal Center { Los Angeles, California 90009 : RFP No. F04701-82-R\-0110
TGS-LCC-1 Code Ident 07868 1 October 1982 LIFE CYCLE COST ESTIMATION REQUIREMENTS FOR THE INTEGRATED OPERATIONAL NUDET DETECTION SYSTEM (IONDS) GLOBAL SEGMENT (IGS) USER SUBSEGMENT (U)
IGS-LCC-1 Code Ident 07868 1 October 1982 LIFE CYCLE COST ESTIMATION REQUIREMENTS FOR THE INTEGRATED OPERATIONAL NUDET DETECTION SYSTEM (IONDS) GLOBAL SEGMENT (IGS) USER SUBSEGMENT (U) RFP NO.: FO4701-82-R-0110 PREPARED FOR: SPACE DIVISION/AFSC/YEG P.O. Box 92960 Worldway Postal Center Los Angeles, California 90009 PREPARED BY: FORD AEROSPACE & COMMUNICATIONS CORPORATION WDL Division 3939 Fabian Way Palo Alto, CA 94303 CONTRACT NO.: F0O4701-76-C-0060  -
3.0 4.0 5.0 6.0 7.0 8.0 LIFE CYCLE COST ESTIMATION REQUIREMENTS FOR THE IGS-LCC~1 Code Ident 07868 1 October 1982 INTEGRATED OPERATIONAL NUDET DETECTION SYSTEM (IONDS) GLOBAL SEGMENT (IGS) USER SUBSEGMENT (U) COMPLIANCE DOCUMENT INTRODUCTION OVERVIEW a. PRICE Hardware Model (PRICE H) b. PRICE Software Model (PRICE S) c. Operation and Support Cost Model (ONSCOSTS) LIFE CYCLE COST OBJECTIVES USE "OF MODELS a. PRICE H Input Variables b. Program Constraints -— Global c. PRICE S Input Variables COSTING GROUND RULES AND ASSUMPTIONS COST DATA DESCRIPTION DESIGN ~-TO-COST a. Design-to-cost for PRICE H b. Design-to-cost for PRICE S ec. Design-to-cost for ONSCOSTS TERMINAL OPERATION a. PRICE H/S b. ONSCOSTS ? 38 42 51 53 53 53 56 57 57 57 58
9.0 PRODUCTION PLAN 10.0 COST OUTPUT 11,0 CONSOLIDATED COSTS APPENDIX I ii IGS-LCC-1 Code Ident 07868 1 October 1982 Page 58 59 60 61
LIST OF FIGURES 1 Input Worksheet for PRICE H 2 Input Worksheeet for PRICE H = Other Modes 3 PRICE Global Worksheet 4 Input Worksheet for PRICE S 5 PRICE H Design-to-Cost Input LIST OF TABLES Table Title I Input Data Base Operation and Support Cost (ONSCOSTS ) Lii IGS-LCC—1 Code Ident 07868 1 October 1982
IGS-LCC~1 Code Ident 07868 1 October 1982 LIFE CYCLE COST ESTIMATION REQUIREMENTS FOR THE INTEGRATED OPERATIONAL NUDET DETECTION SYSTEM (IONDS) GLOBAL SEGMENT (IGS) USER SUBSEGMENT (U) COMPLIANCE DOCUMENT 1.0 INTRODUCTION, The objective of the Ground/Airbornre IGS Terminal (G/AIT) program is to provide the means by which operational forces are furnished NUDET (Nuclear Detonation) data for use in force management decisions. Since this can be achieved only by the deployment of terminals at varied command post loca- tions, management decisions during the development phase must place major emphasis on the evaluation of alternatives in’ the context of life cycle cost (LCC). The intent of this cost estimating approach is to provide a consis- tent means of assessing the impact of alternatives and to establish a basis for determining LCC. This may be done based on the following philosophy: a. The objective of a good weapon -vstem development must be to achieve the required performance for the least life cycle cost. Specific- ally, design implementation decisions must seriously assess the effects on long term support cost such as maintenance resources and sparing. Reliability, producibility and maintainability are considered integral parts of the system design and are worthy of equal consideration with performance achievement. b. The credibility of any LCC estimate is directly related to the validity of the assumptions made in generating input variables.
IGS-LCC-1 Code Ident 07868 1 October 1982 These variables fall into two categories -- programmatic and designer's choice. The programmatic variables (e.g., production, quantity, year of economics, MTBF, deployment factors, etc.) must be furnished by the Government to permit a credible comparative assessment of design alternatives. Other variables (e.g., design complexity, tooling requirements, etc.) are design driven and are the contractor's choice to the extent to where they can be justified. This justification will involve both technical and cost consider- ations. The technical consideration should be consistent with the proposed design and the nonrecurring cost estimates should be consistent with the propesed cost. 9 c. LCC modeling is a credible design tool. The assessment of a design, in the context of LCC variables, can provide a sensitivity to unnecessary complexity which optimizes system design when convolved with reliability (including parts selection) and performance considerations. The purpose of this manual is to provide instructions and requirements for estimating the G/AIT's life cycle cost through the use of PRICE (H and S) and ONSCOSTS cost-modeling methods. These three models provide the means for determining life cycle cost from the acquisition phase (nonrecurring and recurring) through the operation and suppert phase of the Ground/Airborne IGS Terminal procurement.
IGS-LCC-1 Code Ident 07868 1 October 1982 2.0 OVERVIEW. a. PRICE Hardware Model (PRICE H) was developed by RCA in early 1960 and used rigorously in the late 1960's and early 1970's to estimate avionics and space systems’ costs. Interest grew outside of RCA to the extent that arrangements were made to lease this model from RCA. Commercial operations began in 1975 with nearly 200 new trainees each year. PRICE H is a traditional method used to derive cost estimates. Although PRICE H is based upon representative traditional process of. cost estimating (material lists, man-hour of labor, etc.) they are neither inputs nor outputs. Representative cost factors are reduced by experienced users and then inserted into the operational model for final evaluation. PRICE H is applicable to all aspects of hardware acquisitions whether it be development, production, purchase, government furnished, or modification of existing equipment. It estimates the cost associated with design, drafting, project management, docunentation, support engineering, special tool and test equipment, plus overhead. Cost for integrating subassemblies and testing system requirements are estimated by PRICE H. Costs for field test, site construction and software are also estimated by the PRICE H hardware model.
IGS-LCC-1 Code Ident 07868 1 October 1982 (1) Methodology - The method used to model the estimating procedure is parametric. When the model calculates a manufacturing cost, it does not use parts list and labor resource charts but a parametric representation of parts and labor costs. PRICE H contains thousands of mathematical equations relating input variables to cost. Each specific set of input parameters defines the hardware cost model. The resultant cost is determined from mathematical equations. PRICE H does not perform the function of a look-up table but relies upon its internal mathematical equations to determine cost. PRICE H was designed to estimate costs with a minimal amount of hardware information. In the conceptual stage of development this feature makes it a legitimate tool for cost estimating. - (2) Mechanics - From a mechanics standpoint, PRICE H is a conversation between a computer and a user. The parametric data used to determine hardware cost is formulated and stered in computer data files. After the user stores the data, he controls the output format, makes sensitivity analyses, contributes to integration and test efforts and uses estimates to arrive at a herdware cost. Since PRICE H must be adaptive to hardware configuration, the user must validate the data for hardware calibration. Although the input is a tediousvand arduous--task, its performance saves time when considering the overall process.
IGS-LCC-1 Code Ident 07868 1 October 1982 PRICE Software Model (PRICE S) is an outgrowth of RCA's empirical modeling methods for solving computer software costs and schedules. This model is designed to cover all types of software development, including business systems, communication, command and control, avionics and space systems. Its universality is achieved by parametric techniques similar to the hardware cost estimating method. PRICE S provides sensitivity and schedule analyses, monthly cost and progress summaries, risk analysis and project tracking. (1) Mechanies. The parametric procedures employed by this model provide several major advantages. They permit rapid top-down evaluations, independent of traditional bottoms-up estimates. They enable rapid updates in light of increased knowl edge and changing requirements. They permit extrapolation beyond the range of personel experience. They provide a framework for organizing and categorizing relevant experience for future projects. They provide a language for negotiation which identifies assumptions fer proposed development costs and schedules. (2) Modes of Operation. PRICE S provides four modes of operation which are available to the user -- normal operation, resource calibration, application calibration and design-to-cost. Since PRICE S is an interactive model, the user has to access time- sharing computer via telephone lines from standard office terminals. ’
IGS-LCC~1 Code Ident 07868 1 October 1982 Normal Mode — The normal mode is the one used to develop cost estimates for new software projects. This mode combines the project descriptors and customized parametric values with economic and technological growth factors. Resource and Application Calibration - These calibration modes instruct PRICE S to run in reverse to calculate empirical factors from historical costs. They enable an estimator to organize and describe real-world experience. Design-to-cost - The design-to-cost mode uses specified target costs to compute typical program sizes and schedules which are consistent with given cost constraints. It permits PRICE S to investigate feasibilities and to set scope of work goals when faced with total resource limits and allowable expenditures. ¢. Operation and Support Cost Model (ONSCOSTS). The ONSCOSTS model expands and supplements the Air Force Logistics Command (AFLC) Logistics Support Cost (LSC) model to yield estimated costs as initial fixed costs, annual recurring costs and service life total costs for seventeen cost categories. There are twelve statistical outputs. This depth of output provides the program manager with the capability to request more diversified estimates amd trade-off studies than heretofore available.
IGS-LCc-1 Code Ident 07868 1 October 1982 (1) Levels of Output. ONSCOSTS calculates costs and statistics to (2) (3) five levels corresponding to the following: System (SYS). - Support Equipment (SEQ). - Subsystem (SUB). - Line Replaceable Unit (LRU). - Software, including programs with firmware (SFT). Column of Outputs. Outputs are formatted for ready presentation as final reports. Costs are printed in three columns which correspond to: - INITIAL. This is a one-time cost called "Support Investment." These costs must be expended prior to initial " operational use of the equipment being acquired. ~ ANNUAL. The annually recurring costs must be expended over the operational life of the equipment. - SUM. The sum is the total of the INITIAL cost plus the ANNUAL cost multiplied by the estimated service life in years. Lines of Cost Output. Following the name of each equipment there are output lines by cost categories listing abbreviated titles ard the costs for INITIAL, ANNUAL and SUM.
IGS~-LCC~-1 Code Ident 07868 1 October 1982 3.0 LIFE CYCLE COST OBJECTIVES. The objectives of the G/AITs LCC are to evaluate design alternatives and to determine the overall system configuration subject to the following constraints: a. Meets or exceeds technical performance requirements. b. Meets or exceeds specified reliability and maintainability requirements. c. Provides the lowest feasible life cycle cost characteristics. d. Determines the total cost of the G/AIT over its full life cycle. To identify the lowest effective LCC, cost estimates shall be developed using the parametric cost model (PRICE H/PRICE S) and the grass roots estimate (ONSCOSTS). Outputs from these models may be used to review, assess and update the iterative LCC Management process shown below. STEP 1 STEP 2 STEP 3 STEP 4 DEFINE & ISSUE 1, DESIGN REQUIREMENTS 2. LCC REQUIREMENTS MANAGEMENT REVIEW & ASSESSMENT DESIGN EVOLUTION DESIGN TRADEOFFS _LCC ESTIMATE STEP 5 UPDATE DTLCC AND REQUIREMENTS DESIGN
IGS-LCC-1 Code Ident 07868 1 October 1982 4.0 YSE OF MODELS. While running PRICE H, PRICE S and ONSCOSTS during the acquisition, operation and support phase, it is important that cost drivers are identified, understood and evaluated. Those items that are considered important cost drivers are underlined in this section. To determine an equitable cost estimate for evaluating the G/AIT procurement, each contractor shall furnish with their proposal a list of input variables for Price H, Price S and ONSCOSTS plus their cost listings (printouts) for each option listed on page 54, The following input variables are provided by the Government to establish an LCC baseline: PRICE H (1) "Production Quantity - QTY = (See page 59) (2) Year of Economics - YRECON = 1982. (3) Prototypes - PROTOS = (Two runs shall be made ~ the first one shall use PROTOS = 1 using anticipated new design factors (NEWEL/ NEWST); the second one shall use PROTOS = 2 and design factors (NEWEL/NEWST = 0). Sum the results of these two runs). (4) Development Start - DSTART = Apr 1983. (5) Development Conplete - DLPRO = May 1987 and contractor's best estimate. (6) Production Start — PSTART = Jul 1984. (7) Production Complete - PEND = (See page 59).
MODE 1 - e IGS-LCC—1 Code Ident 07868 1 October 1982 PRICE S (1) Sehedule - DSTART = Apr 1983. (2) Supplemental Information. ~ Economic year - YEAR = 1982. ONSCOSTS (1) Level of output ~ System, Support Equipment, Subsystem, Line Replaceable Unit, Software including programs of Firmware. (2) Base-year-dollars = 1982. (3) ONSCOSTS INPUT CONSTANTS. The input constants used for costing ONSCOSTS procurement options are contained in Table I and shall be used in place of the data referenced in AFSCR 173~-10.* For a complete description of ONSCOSTS input data, its diversified estimates, trade-off capabilities and outputs, see Appendix I. ° . *(NOTE: The intermediate repair facilities (IRFA) are excluded from the IONDS ONSCOSTS computation). PRICE H Input Variables. This section defines the variables used to describe the hardware program for the operation and support phase of the life eyele cost. (For a complete description, usage and tables relating to these input variables, use the current RCA PRICE H Reference Manual.) There are ten different modes for entering data into PRICE H, each serving a different purpose. The term "mode" is a coded value which provides engineers with the following alternative operations: ITEM OPERATION Electronic & Most common mode. Provides for analysis of Mechanical Item typical item containing both electronic and , mechanical/structural elements, or electronic elements only. 10
It TABLE I. INPUT DATA BASE OPERATION AND SUPPORT COST (ONSCOSTS) ONCOSTS INPUT CONSTANTS PROCUREMENT CATEGORIES USE FOR WORLDWIDE, THEATER AND SELECTED SELECTED WORLDWIDE THEATER AREA AREA, UNLESS INDICATED| ATRBORNE AIRBORNE ECi35/E4B~- |EC135/E4B- . : 20 HRS 130 HRS GROUND GROUND , 100 HRS 100 HRS ATRBORNE | EC 135-90 HRS E4B~-220 HRS | CROUND 220 HRS AOHR (OP. HRS. PER MO) AIRBORNE GROUND ASEB/ASED~8 ,769.6 HRS ASEI ~ 0 HRS ASEB, ASED, & ASEI (HOURS PER YEAR SE IS ‘ AVAILABLE AT BASE, DEPOT, AND IFRA, RESPECTIVELY) BASE (NO. OF OP LOCATIONS) | pe BLRA (AV. INTERMEDIATE FAC. ‘LABOR RATE wen $27.45/HR. sf {| Ee Pp — | —— DLRA (AV, DEPOT LEVEL LABOR RATE) 0.001 16 T-99T-SSI EXBO (EXPECTED BACK ORDERS) ZB6T 2940390 1 898L0 wep epop CONTRACTOR TO RECOMMED FACI - 0 HRS | FACB, FACD, & FACI (FACILITIES COST AT BASE, DEPOT, AND IFRA)
él TABLE I. INPUT DATA BASE OPERATICN AND SUPPORT COSTS (ONSCOSTS) (CONT'D) PROCUREMENT CATEGORIES SELECTED WORLDWIDE THEATER AREA USE FOR WORLDWIDE, THEATER, AND SELECTED JAREA, UNLESS INDICATED ONCOSTS INPUT CONSTANTS CONTRACTOR TO RECOMMEND FACD (COST OF ADDL. DEPOT LEV. MAINT. FAC.) CONTRACTOR TO RECOMMEND FACI (COST OF ADDL/NEW MAINT. FAC. PER I} TER. REP, LOC.) CONTRACTOR TO RECOMMEND FACU (FACILITIES UPKEEP) SEE AFLCR 173-10 OR CONTRACTOR TO ESTIMATE xo a CONTRACTOR TO RECOMMEND FCOS, FCRA, FMHR & FPTK (FUEL RELATED COSTS -- ARE THEY EVEN APPLICABLE?) IMCO (INIT. INV. MGT. COST) | IRCT (INTERMEDIATE REPAIR CYCLE TIME WHEN USED) IRFA (INT. REP. FAC, )°/SAME AS BASES WHEN USED) JPAG (NO. OF PAGES OF MAINT. AND SUPPLY AT BASE AND DEPO) Z86T 7999990 T 898L0 IUeEPT epeo 1-991-SO1
€T TABLE I. INPUT DATA BASE OPERATION AND SUPPORT COST (ONSCOSTS) (CONT'D) PROCUREMENT CATEGORIES USE FOR WQRLDWIDE, SELECTED ONCOSTS INPUT CONSTANTS THEATER AND SELECTED WORLDWIDE THEATER AREA AREA, UNLESS INDICATED) NCIV (NUMBER OF CIVILIANS IN THE OPERATING NENL (NUMBER OF ENLISTED PERSONNEL IN THE OPERATING CREW) NOFF (NUMBER OFOFFICER PERSONNEL IN THE P| OPERATING CREW) OHBF (OVERHEAD/BASE LEVEL MAINT. FACTOR) . ee OHDF (OVERHEAD/DEPOT LEVEL MAINT. FACTOR) | —— OHIF (OVERHEAD/ INTER. LEVEL iamwr. FACTOR) OSEA (OVERSEAS LOCATIONS, FRAC, OF TOT. DEPLOYMENT ) OSTC (AV. ORDER & SHIP. TIME/CONUS) OSTO (AV, ORDER & SHIP. TIME/OVERSEAS ) T-991-SOT Z96T 42990320 T 898L0 AUSPI Pod
val TABLE I. INPUT DATA BASE OPERATION AND SUPPORT COST (ONSCOSTS) (CONT'D) PROCUREMENT CATEGORIES ONCOSTS INPUT CONSTANTS USE FOR WQRLDWIDE, THEATER AND SELECTED AREA, UNLESS_INDICATED | PAYC (AV, MO. PAY FOR 1 CIV. OF AV. GR. IN OP. $2443.85(Gs-11) CREW) PAYE (AV. MO. PAY FOR 1 E/M OF AV. GR. IN OP. CREW) $1061.00(Sgt) PAYO (AV.:MO. PAY OF 1 OFF. OF AV. GR. IN OP. CREW) 1$2521.00(Capt) pcsc (AV. COST RELO. 1 CIV. CREW MEMBER) PCSE (AV. COST RELO. 1 E/M CREW MEMBER) PCSM (PERMANENT CHANGE OF STATION COST) PCSO (AV. COST RELO. 1 OFF. CREW MEMBER) PDYC (AV. PER DIEM COST PER. CIV.) $ 60.00 | $ 60.00 PDYE (AV. PER DIEM COST PER. E/M) . PDYO (AV. PER DIEM COST PER. OFF.) raene.00 oo SELECTED AREA Z86T 2999390 T 89820 AUePI Sspop T-991-S5T
TABLE I, INPUT DATA BASE OPERATION AND SUPPORT COST (ONSCOSTS) (CONT'D) PROCUREMENT CATEGORIES USE FOR WORLDWIDE SELECTED ONCOSTS INPUT CONSTANTS THEATER AND SELECTED | WORLDWIDE THEATER AREA AREA, UNLESS INDICATED PIUp (OP, SER. LIFE OF TOT. SYSTEM. IN YRS.) 15 YRS. PMHB (DIR. PRODUCTIVE MAINT. M/H PER BASE) 1,728 M/H Per Year PMHD (DIR. PRODUCTIVE MAINT. M/H PER DEPOT) 1,728 M/H Per Year PMHI (DIR. PROD. MAINT. M/H PER INTERMEDIATE 1,728 M/H Per Year FAC.) ‘ POHR (EXPECTED PEAK OP. HRS. PER. MO.) po PSCU (AV. SHIP. & PKG. COST/CONUS) $0.94/1b PSOS (AV. SHIP. & PKG. COST/OVERSEAS) $1.42/1ib RMCO (RECURRING MANAGEMENT COST) POHD (PERSONNEL O/H FACTOR FOR OPS. SUPPORT) ous | pe RUTS (RATIO OF UNIT WEIGHT TO SHIPPING WEIGHT) — T~991-S5I c86T 14299290 T 89840 JUSp] epog
_ oa) TABLE I. INPUT DATA BASE OPERATION AND SUPPORT COSTS (ONSCOSTS) (CONT'D? PROCUREMENT CATEGORIES SELECTED AREA USE FOR WORLDWIDE THEATER AND SELECTED AREA, UNLESS INDICATED) ONCOSTS INPUT CONSTANTS WORLDWIDE THEATER SPAD (ANNUAL BASE SUPPLY IN INV. MGT. COST $36.59 PER ITEM) TDAT (COST OF ORIG. TECH DOCUMENTATION) TDUP (TECH DATA COST PER PAGE FOR UPKEEP) ZERO Tpyc (AV. NO. OF DAYS TDY FOR CN. CREW MEM.) jer 100 Per Year TDYE (AV. NO. OF DAYS TDY FOR E/M CREW MM.) veRO oo TDYO (AV. NO. OF DAYS TDY FOR OFF. CREW on.) ZERO | 50 Per Year es TMMB, TMMD, & TMME (TRAINED MAINTENANCE MEN AT TMMD - 10 TMMB - 5 fnew - 2 | BASE, DEPOT, AND IRFA) TMMI - 0 tT TRBA (ANNUAL TURNOVER RATE, BASE LEV. MAINT. PERS.) TRDE (ANNUAL TURNOVER RATE, DEPOT LEV. MAINT. 0.15 PERS.) “Z861T 2940390 T 89820 3UepPL epoo T-D0T-SOL
LT _ TABLE I. INPUT DATA BASE OPERATION AND SUPPORT COST (ONSCOSTS) (CONT'D) PROCUREMENT CATEGORIES USE FOR WORLDWIDE, ONCOSTS INPUT CONSTANTS THEATER AND SELECTED | WORLDWIDE THEATER AREA, UNLESS INDICATED TRGC (AV. INIT. TRNG. COST PER CIV. CREW MEM.) {$5500.00 TRGE (AV. INIT. TRNG. COST PER E/M CREW MEM.) $9532. 00 TRGO (AV. INIT. TRNG. COST PER OFF. CREW MEM.) $9532.00 TRIF (ANNUAL TURNOVER RATE/INTER MAINT. PERS. WHEN USED) TRNC (TURNOVER RATE OF OPERATING CREW samt —}- TRNE (ANNUAL TURNOVER RATE/E/M CREW MEM.) == TRNO (ANNUAL TURNOVER RATE/OFF CREW MEM, ) fom | UMMB, UMMD, & UMMIL (UTILIZATION OF MAINTENANCE | UMMB - 0.4 BASE, DEPOT & IRFA) UNEQ (UNIT EQUIP., NO, OF INDIVIDUAL ‘SYS. ) XMTB, XMTD, & XMII (EXTRA MAINTENANCE TIME AT XMTB - 0.49 BASE, DEPOT & IRFA XMTD - 0.65 XMTI - 0.65 Z86L 2940390 T 89820 3Uepl apoy T-99T-SoI
st TABLE I, INPUT DATA BASE OPERATION AND SUPPORT COSTS (ONSCOSTS) (CONT'D) ONCOSTS INPUT CONSTANTS NOTE: The following are 4th level variables. Use weighted average for appropriate application, e. g, 63 days x 95% in conus = 59,85, 73 days x 5% overseas = 3.65. The combined value for depot = 63.50 days. DRCT (DEPOT REPAIR CYCLE TIME/CONUS) DRCT (DEPOT REPAIR CYCLE TIME/OVERSEAS) DRCT (CONTR. REPAIR CYCLE TIME/OVERSEAS) DRCT (CONT, REPAIR CYCLE TIME/CONUS) USE FOR WORLDWIDE, THEATER AND SELECTED AREA, UNLESS INDICATED 2.1 MOS - 63 Days 2.41 MOS - 73 Days 2.51 MOS - 76 Days 2.2 MOS - 66 Days WORLDWIDE PROCUREMENT CATEGORIES SELECTED THEATER AREA i ZB86T 2290390 T 89840 UEP spon 1-991-S9I
IGS-LCC-1 . Code Ident 07868 1 Octeber 1982 2 Mechanical Item For analysis of mechanical/structural items which contain no electronic elements, e.g., housing modules or optical packages. 3 Purchased Item Processes purchased item to support computation of integration and test costs. 4 GFE Item Processes Government Furnished Equipment (GFE) item to support computation of integration and test costs. 5 Integration and Test Provides for extracting appropriate data from all items being integrated into a system, and developing these data into an integration and test (I&T) empirical data set. Total system costs can therefore reflect the cost of integratior and test as well as the cost of all indiviaual items. 6 Modified Item Processes the modification effort on purchased or GFE items using approach and inputs similar to Modes 1 and 2. 7 ECIRP Used to derive complexity values from historical project, technical and cost data. 8 THRU-PUT Used to Thru-put costs not estimated by . PRICE. i) PROADJ Processes follow-on production lots. Must be preceded by a MODE 1, 2, or 10, 10 DESIGN-TO-COST Calculates hardware parameters based on target cost goals and type of technology. Figure 1 shows the input form for PRICE H ~~ basic Modes 1, 2, 6, 7 and 10. Figure 2 shows the input form for PRICE H for Medes 3, 4, 5, 8 and 9. Data for each form will be inputted by consecutive lines such as General A, General B, Mechanical/Structural, etc. Thus, the first line of data in Figure 1 is the General A line and will be the sequenced in order as listed on the input sheets. The following definitions will aid in understanding and filling out each entry on the input sheet.
**PRICE 84 (This must be used only as the first line of the file.) Title: General A Generali B Mechanical/ Structural Electronics Actual Cost Data (Mode 7 only) Additional Data (Mode 10 only) Notes: Date: Production 1 E/MITEM Quantity Prototypes Weight (ibe) Votame (#2) 2 MECHANICAL ITEM ary PROTOS wr voL MODE 6 MODIFIED tTERS 7 ECIRP 10 DESIGN TO COST Quantity/Next NHA Integration Factors Specification Year of . - Veurof ; Higher Assembly — Electronic Structural Level Economics. Technolog ss QTYNHA INTEGE INTEGS PLTFM YRECON YATECH ir Structure Manufacturing New Weight Complexity Structure ws MCPLXS NEWST "Elect nics Manufacturing New Weightite3 Complexity Electronics WECF MCPLXE NEWEL Devslopment Ist Prototype Development Engineering Tooling & Prototype 4 Start Compiete Complete Complexity Test Equip... Activity i DSTART prea Dupre crs - PROSUP - Production Fwst Article Production Start Delivery Complete PSTART PFAD PEND Production Development Average Unit Total Prototypes Total AucosT PTCOST PRCOST oTcost Electronic Structural Volume Fraction Weight /fr® Target Cost USEVOL WSCF TARCST ee ee el $I SAA A SN errr ee mr rat A EASE PE SACS TE SC a rr ee EG PE PP Oe SS A SL SL Ee pr EE SERCH TC A Nn ee ne renee nA se cS SS SPSS, SP FIGURE 1. INPUT WORKSHEET FOR PRICE H 20
Purchased/GFE- Item (Modes 3 & 4) Production : Quantity Prototypes Weight (ibe) Volume (ft?) General A ary PROTOS wr var O- MODE General B General C cosT’ (Mode 3 oniy) Development istProvo Production Production a Stet Complete Complete “Stert Complete (irese" fo") SCHEDULE DSTART DFPRO DLPRO PSTART PEND (Mode 3 only) Integration & Test (Mode 5 — must be the last box in the file.) Production New New Quantity Prototypes - Electronics Structure General A aty PROTOS NEWEL NEWST MODE (l& T) General B Development —_—_—tst Proto Development Production Production Start Compiete Complete Start Complete Schedule | OSTART DFPRO OLPRO PSTART PEND Thru-put (Mode 8) CATEGORY CODES: FIELD SUPPORT-1 FIELD TEST-2 SOFTWARE-3  OTHER—4 Category Development Production Code . Cost Cost Totai Cost General A CATGRY pcosT pcost TcosT MODE (Thru-put) Multipte Lot Production Adjustment (Mode 9 — mst be preceded by a Mode 1 or Mode 2 input.) ¢ Production Production First Article Production . Quantity Start . Delivery Complete Contra! General A arty PSTART PFAD PEND MODE PANT (PROADJ) FIGURE 2. INPUT WORKSHEET FOR 2RICE H; OTHER MODES 21
IGS-LCC-1 Code Ident 07868 1 October 1982 General A QTY (Production Quantity) is the total number of production units that will be produced in the production period defined by PSTART and PEND which are described below. Production units are those units which undergo normal acceptance tests. Whenever production is involved, QrY is a required input. When cevelopment estimates are required, QrY must be entered as zero. QIY¥ has a direct and almost linear effect on production cost and no effect on development cost. PROTOS (Prototypes) indicate the number of prototypes to be built. The number input for PROTOS should include engineering models, brassboards, partial prototypes, as well as, working and testing models. PROTOS should not include breadboard models. If brassboard activity is planned, it should be equated to fabrication of a partial prototype. PROTOS may be entered as any real positive number. For preduction estimates, PROTOS must be zero. WI (Weight) sets forth the total weight of the assembly in pounds. Total weight = weight of electronics plus the weight of the structure. WI has 2 direct effect on all costs in development and production and is a required input in Modes 1, 2, 4, 6 and 7. It is optional in Mode 3. VOL (Volume) defines the size of the product in cubic feet. Its primary use in the PRICE methodology is in the derivation of the assembly's packaging densities, electronic (WECF) and/or mechanical (WSCF) inputs. If Volume is used to manually calculate structural weight, packaging densities, and 22
TGS-LCC-1 Code Ident 07868 1 October 1982 subsequently MCPLXS or MCPLXE, it can have a significant effect_on costs. If these values are known and no calculation is required, Volume has no effect on costs. VOL must be greater than or equal to 0.0001 cubic feet. General B QTYNHA (Quantity/Next Higher Assembly) is the number of units required to be integrated and tested at the next higher assembly level. It must be a whole number and is a required input in all modes except 7, 8 and 9. It has no effect on cost of the unit where the variable entry is made and only affects cost accumulated for integration of the next higher assembly level. INTEGE (Electronic Integration Factor) defines the level of electronic integration and test. It describes the level of effect required for the integration of electronic equipment in the next higher assembly level, and has neo effect on the cost of the box for which it is entered. INTEGE is used by the program to generate an empirical data set indicative of the level of integration and test effort. This data set (basically weight and complexi- ties) is of abstract value and should not be considered to have any physical significance. INTEGS (Mechanical Integration Factor) is the level of mechanical integration and test. It describes une level of effort required for the integration of mechanical/structural equipment in the next higher assembly level. The INTEGS value is used to generate an empirical data set of abstract values which do not represent any actual physical device. PRICE requires mass (weight, size, etc.) in order to calculate costs. 23
IGS-LCC-1 Code Ident 07868 1 October 1982 PLTFM (Platform Specification Level) is a code that describes the intended operating environment and the normal reliability requirements of the environment. Development costs are a function of reliability requirements and greatly affect the value of PLTFM. PLIFM, by itself, does not have a big impact on cost. However, MCPLXE and MCPLXS values are chosen as a function of PLTFM and have.a major effect on program cost. YRECON (Year of Economics - 1982 dollars) defines the year of economics from 1946 to 2025. When YRECON is not used, an input DSTART or PSTART defines the year of economics. YRECON uses 1 January as its reference date and does not add inflation to the final estimate. YRTECH (Year of Technology) establishes the year of technology for PRICE H. The model ‘assumes that technology is current when development and production efforts commence. Adjustments are automatically made for improvements throughout the duration of the program. When YRTECH is entered, the model establishes the ist of January of that year as the date of technology. Mechanical/Structure WS (Structure Weight) is the weight of mechanical/structural items expressed in pounds. For electronic equipment, WS usually involves the enclosure, rack, or cabinet and such other mechanical items as slides, blowers, heat sinks, etc. WS is an important variable which should be determined as accurately as possible. The entire production and development cost of a mechanical item is predicted on the value of WS. 24
IGS-LCC=-1 Code Ident 07868 1 October 1982 MCPLXS (Manufacturing Complexity of the Structure) is the manufacturing complexity factor for mechanical/structural items. It is usually an empirically derived value that represents the product's producibility. It is a function of the material type, finished density and fabrication methods. MCPLXS should be a PRICE input whenever it is reliably determined from empirical information. In the event MCPLXS is not know, its input value must be entered as "C" and the proper MECID parameter used. The program will compute and output a general MCPLXS for the equipment class. MCPLXS is used to calculate the only piece cost (OPC) of structure or mechanical elements. MCPLXS's effect on cost is not linear; an increase from 5.0 to 6.0 may more than double the production cost. ° . NEWST (New Structure) defines the degree of new design requirements for a Structure. It refers only to that portion of a structural assembly that is unique ‘and not to repetitiveness or redundancy. The NEWST parameter refers only to relative new designs. DESRPS (Design Repeat of Structure) sets forth the amount of structural repetition in a particular cencept. It is necessary to consider the level of repetitiveness for an assembly. If a device consists of ten identical subassemblies, only one subassembly requires a design effort. Without proper indication the PRICE program would generate costs reflecting each subassembly as a unique desig. In developing values for DESRPS parameters, the level of activity ranges from 5% to 50% of the total design effort. 25
IGS-LCC~1 Code Ident 07868 1 October 1982 MECID (Equipment Classification, Mechanical) can be used to identify a specific kind of structure as follows: Equipment Class Code 100 Mechanical 500 (Not yet defined) 200 (Not yet defined) 600 Propulsion 300 Electo-Mechanical 700 Antenna 400 Battery 800 Electro-Optics The principal use of this variable is in Mode 3 where it generates a general MCPLXS for purchased items. It provides a means to calculate MCPLXS in the absence of other reasonable source of reference. MREL (Mechanical Reliability) is a linear multiplier used to rate the value of MTBF in the Mechanical/Structural area. MREL has no effect on the cost estimate provided by PRICE, but can have a Significant effect on Life Cycle Costs if the calculated value of MIBF is used in a subsequent Life Cycle Cost analysis. MREL can be used to increase the output value of MTBF. WECF (Electronics Weight/ ft?) defines the electronic packaging density of an assembly in pounds per cubic feet. It is not a cost driver used by itself but plays several important roles. It is defined by: WI - WS WECF = TSEVOL x VOL 26
IGS-LCC=1 Code Ident 07868 1 October 1982 where WI - WS is the weight of electronic equipment and USEVOL x VOL is the volume occupied by this equipment. It is an important check of input values relating to WT, WS and VOL. The second role of WECF is to determine the proper value to use for MCPLXE. MCPLXE is a significant cost driver. MCPLXE (Manufacturing Complexity of the Electronics) is a manufactur ing complexity factor for electronics and can be derived using other values, principally CMPID. MCPLXE represents the product's producibility and is a function of its component elements, p ckaging density, manufacturability, testing and power dissipation. This entry should be an input whenever it can be reliably determined. MCPLXE is a very significant cost driver. NEWEL (New Electronics) defines the degree of new electronic design. It refers only to that portion of the electronic assembly that is unique. Do not confuse it with the repetitiveness factor DESRPE. NEWEL pertains only to the relative new design effort appropriate to unique designs. When there are three new designs and eight unique designs, the formula for expressing NEWEL follows: ___NEW DESIGN 3 | NEWEL = (NIQUE DESIGN = g 7 9-375 DESRPE (Design Repeat of Electronics) sets forth the amount of design repetition for a specific concept. DESRPE describes the electronic portion of the design. 27
IGS-LCC-1 Code Ident 07868 1 October 1982 It must be kept in mind that a portion of the total design concept involves internal integration and test procedures. This level ranges from 5% to 35% of the total design effort. When generating costs for drafting and design, it is necessary to consider the level of repetitiveness. For example, a digital processor contains 12 equivalent cards of which only 8 cards are involved. This means that 4 of the cards must be identical to one or more of the 8 unique cards. This identity may be performed by using the following formula: DESRPE = Redundant Hardware 4 33% of the total electronics effort does not require additional design effort because it is identical to portions of the remaining 67%. CMPID (Equipment Classification, Electronic) is an optional input variable which describes the class of electronic equipment and its component technology. Equipment Class Code 100 Power Supplies 200 Analog. signal processors, receivers 300 Digital 400 Control (without cathode ray tube) 500 Displays (with cathode ray tube) 600 Transmitters The’ principal use of this variable is to determine a reasonableness and coherency check of other electronic parameters, primarily MCPLXE. 28
IGS=LCC-1 Code Ident 07868 1 October 1982 EREL (Electronic Reliability) is a linear multiplier used to change the value of MTBF. EREL has no effect on cost estimates provided by PRICE, but can have a significant effect on Life Cycle Costs if new calculated values of MIBF are used in subsequent Life Cycle Cost analyses. Development DSTART (Development Start Date) is a variable indicating the start of the “scope of work" or the performance of the development effort. It is entered as a three or four digit code, e.g., 1 Feburary 1980 = 280. This variable is used to: (1) Establish the starting time for the application of escalation, (2) Establish the year of technology for the development effort. DFPRO (Development. First Prototype) is a variable indicating the date of completion of all qualification tests for the first prototype. It is entered as a three or fou digit code as described in DSTART. The accuracy of this variable is important since engineering costs are Significantly influenced by schedules. In all cases PRICE input variables must include either ECMPLX or DFPRO. It is desirable to include both variables and have the model internally assess the schedule suggested by ECMPLX and compare it to the schedule directed by DFPRO. In cases where DFPRO is not known, an input "C" will cause the program to calculate the calendar months required. 29
IGS =LCC~=1 Code Ident 07868 1 Qetober 1982 DLPRO (Development Last Prototype) indicates the date of completion of the engineering scope of work and/or the final prototype. It is entered as a three or four digit code as described in DSTART. When the time interval between DFPRO and DLPRO is longer than necessary, the model assumes the time interval is used to value-engineer the product, i.e., to make it cheaper to produce. When DLPRO is not known, the model calculates the new date. In all eases DLPRO must be equal to or less than DFPRO. ECMPLX (Engineering Complexity) is the engineering complexity renking factor. It is used to scope the development effort and to develop the calendar time (in months) for completing the first prototype. Since development costs are very sensitive to ECMPLX it is important that input variables for ECMPLX be assessed critically. The PRICE model requires either ECMPLX or DFPRO as an input. If the program calculates ECMPLX, a typical scope of work would be assumed to be accomplished by DFPRO, with no provisions for acceleration or stretch-out. DILGTS (Development Tooling and Test Equipment) defines the level of tools and test equipment necessary for prototype assembly. A value of 1.0 means that a full complement is necessary and is chargeable to the job. Converseley, a value of 0.0 implies that no such cost is necessary. DILGTS is an optional input. PROSUP (Prototype Support) is an empirical value, to adjust prototype and associated design costs. This entry is an optional input. A preset value of 1.0 is used by the model for any box which has no value entered. 30
IGS-LCC~1 Code Ident 07868 1 October 1982 Production PSTART (Production Start Date) is the date indicating the start of the production cycle. This date identifies significant manufacturing activities but does not include long-lead procurement activities which may start before the completion of development. It is entered as a three or four numeral code, e.g., November 1, 1978 = 1178. PFAD (Production First Article Delivery Date) is the completion date of the first production unit. PFAD defines the length of time required to complete the first production unit after significant manufacturing activities begin. That length of time should not include the procurement of very long-lead items. ° PEND (Production End Date) is the completion date of the production program. It is entered 2 as three or four numeral code as deseribed in PSTART. This entry is used to determine the production period over which costs are to be escalated, tools refurbished and ECN levels established. CPF (Cost Process Factor) describes the manufacturing process from which the PRICE improvement factor (PIF) is derived. It is used to adjust manufac- turing costs and to reflect the rate of improvement. PRICE computes cost improvement values based on manufacturing, technology and quantity. 31
IGS-LCC-1 Code Ident 07868 1 October 1982 PILGTS (Production Tooling and Test Equipment) defines the level of Special tools and test equipment for production. A value of 1.0 means that a full complement is necessary, chargeable and represents a consensus of experience, A value of 0.0 implies that no such cost is necessary. PTLGTS is an optional input. RATOOL (Rate Tooling) describes a monthly production rate which is higher than what is described in the input values of QTY, PFAD and PEND. A non-zero entr* of RATOOL will cause PRICE to estimate the cost of additional tooling required to achieve the monthly production rate. RATOOL is an optional input and should only be used when an estimate for rate tooling (second and subsequent lots) is required as part of the first ° . production lot. Actual Cost Data (Mode 7 only). AUCOST (Average Unit Production Cost) is the average unit manufacturing cost for the specified production quantity. It ineludes production, labor, material and overhead. AUCOST is an optional ECIRP input. PTCOST (Total Production Cost) is the total manufacturing cost for the Specified production quantity. It includes production labor, material and overhead, plus nonrecurring costs such as sustaining engineering, tooling and test equipment. PTCOST is an optional ECIRP input. 32
IGS-LCC-1 Code Ident 07868 1 Oetober 1982 PRCOST (Prototype Cost) is the total manufacturing cost for all prototypes including tooling and test equipment. It includes production, labor, material, overhead, tooling and test equipment. PRCOST is an optional ECIRP input. DICOST (Total Production Cost) is the total cost of development. It includes production, labor, material and overhead for prototype models, nonrecurring costs such as design engineering, drafting, tooling and test equipment, data and project management. DTCOST is an optional ECRIP input. Additional Data (Mode 10 only). USEVOL (Electronic Volume Fraction) defines the fraction of the total assembly volumc that is occupied by electronics, It is a mandatory input in . . Mode 10 and is defined by: _ owe - Ws USEVOL = WECE-x VOL WSCF (Structural Weight/ft>) is the structural density of the assembly, expressed in pounds per cubic foot. It is defined as: WSCF = WS/VOL. WSCF is an input only for Mode 10. TARCST (Target Cost) is the target cost for the assembly under study in the Design-to-Cost Mode. TARCST must be expressed in COSTU dollars. 33
IGS-LCC=1 Code Ident 07868 1 October 1982 OTHER MODES General A (Mode 3 and 4). QTY (Production Quantity) defines the number of purchased GFE units which will be included in the total production program. In mode 3, QTY is multi- plied by the average unit (COST). In mode 4, the value of QTY has no significance. The cost contribution of GFE items relates only as it affects integration and test costs. The number of units and systems to be integrated affects system cost. PROTOS (Prototype:s) defines the number of purchased or GFE units included in the total developnent program. PROTOS affects development costs for Modes 3 and 4 in exactly the same way QTY affects production costs. ° WI (Weight). In mode 3, WT may be input as "C" but the weight should be supplied when available. In mode 4, WT is a mandatory input and its only contribution is to integration and test costs. VOL (Volume) may be input as "C" for mode 3. It follows the same rules for alternate inputs as WT in mode 3. VOL is a mandatory mode 4 input. Mode (see previous description).
TGS-LCC~-1 Code Ident 07868 1 October 1982 General B QTYNHA (Quantity/Next Higher Assembly) - See previous definition. INTEGE/S (Electronic and Mechanical Integration Factors) - See previous definition. PLTFM (Platform Specification Level) - See previous definition. YRECON (Year of Economics) is an optional input in mode 3 which may be used when it is desirable to escalate a quoted cost. YRECON is not used in mode 4, YRTECH (Year of Technology) is an optional input in modes 3 and 4. e General C MCPLXE/S (Manufacturing Complexities). These are optional input values for mode 3. In mode 4, these inputs must be supplied. CMPID/MECID (Equipment Classification). These are optional input values for moue 3. In mode 4, these inputs must be supplied, or the associated inputs for MCPLXE/S must be supplied. WS (Structure Weight) is an optional input and is expressed in pounds. It is used whenever the structured weight of an electromechanical purchased or GFE item is mown. If this entry is zero, the model computes a "typical" WS. 35
IGS-LCC~1 Code Ident 07868 1 October 1982 COST (Mode 3 only). COST (Average Unit Cost) is the average uit cost of purchased items, and is the selling price quoted by the supplier. COST must be set at 1000 in the program constants and is a mandatory entry. DMULT/PMULT (Development and Production Cost Multipliers). Cost multipliers “are optional inputs for mode 3. The purpose is to add material handling or subcontract management surcharges that apply to their particular companies. ESC (Escalation). In mode 3, entry for ESC is optional depending upon the nature of the quotation from the supplier. Schedule (Mode 3 only) ° . The schedule line for mode 3 is a composite of all schedule variables included on the development and production lines. The schedule line should only be used when a value for ESC was entered on the cost line. General A_(I & T - mode 5). QTY = See previous definition. PROTOS - See previous definition. NEWEL = See previous definition. NEWST - See previous definition. 36 7]
IGS-LCC-1 Code Ident 07868 1 October 1982 General B (mode 5). QTYNHA (Quantity/Next Higher Assembly). An entry of zero for the first three variables indicates that this is the highest level of integration for the system. INTEGE/S - See previous definition. PLTFM ~ See previous definition. YRECON =~ See previous definition. YRTECH - See previous definition. Schedule (Mode 5). See previous definition. General A_(Thru-put, mode 8). This mode allows costs, which were developed independently from PRICE, to be entered for final print-out with PRICE calculated costs. CATGRY (Cost Category) defines the category of through-put cost on each mode 8 sheet. DCOST/PCOST/TCOST (Development, Production and Total Costs for aode 8). These items are through-put cost as they appear on the input sheet. General (PROADJ - mode 9 only) This mode is designed to provide for automatic adjustment to certain PRICE parameters applicable to follow-on production lots. 37
IGS~LCC-1 Code Ident 07868 1 October 1982 .Y “b. Program Constants - Global. Another class of variables in the PRICE model is called Program Constants. They remain constant from box to box, from system to system and have preset values that are always used unless deliberately altered. These constants are in two categories -- escalation rates and global variables. Since the IONDS program does not use PRICE to calculate annual escalation rates, global variables model are used. These variables are classified into two categories ~~ program global variables and system global variables. The PRICE Global Wwksheet, shown in Figure 3, includes the names of the program and system global variatles. Program Global Variables DDATA (Development Data) is a PRICE output representing costs for all documentation, including reports. The input value controls the DATA costs during the development phase. The amount of DDATA costs are in direct relationship with the amount of new design for both electronics and structure, DILGTS (Development Tooling and Test Equipment) defines the level of special tools and test equipment necessary for the development of the assembly. DPROJ (Development Project Management) defines the degree of project management required for the engineering phase. 38
if a **PRICE 84 : Title: Global Variables oO , Date: Lo Tooli & Progra : System Prototype _ Date Test Equip. ” Management Reserved tor Engineering «Schedule Factor Program Development: ODATA OTLGTS - SYSTEM “PSF - Global . DPROS OQ Variables : ce — Tooling& = - Program ., ( Daw Test Equip. Management Prodyction: ‘PDATA ' PTLGTS PPROJ Changes Electronic Srructurat ~ Changes. ECNE ECNS eeseene erm Pe i EP eG A Resource . Design Numer Number of a Drafting Engineering of Shifts Facilities System ASRCE DRAFT DESIGN NSHIFT NFACS Global Do Variables Development _Production . Cost Technology Escatatior Multiplier Multiplier - Units esc *  DMULT PMULT -COsTU TECDEL vv errr en enn eG SSFP SS eS NS Notes: FIGURE 3. PRICE GLOBAL WORKSHEET 39
IGS-LCC~1 Code Ident 07868 1 October 1982 SYSTEM (System Engineering) is that support which converts system specification and requirements into a comprehensive design specification for the "black box." PSF (Prototype Schedule Factor) defines the sequence in which the prototype is completed. This variable is used to calculate the engineering performance period. PDATA (Production Data) is a PRICE output representing the costs for all documentation, including reports. Data costs are not limited to the development phase but include modification changes during the production phase. During this phase there will be modification changes to O&M manuals, spares lists, etc. PILGTS (Production Tooling and Test Equipment) defines the level of special tools and test equipment for production. This variable is an optional input. PPROJ (Production Project Management) defines the degree of project management required in the production phase. ECNE/ECNS (Engineering Change Notices, Electronic/Structural) establishes the level of Engineering Change Notices (ECNs) and electronic/structural assemblies that may be expected during the production period. RSRCE (Resources) is used to represent the level of resources available for production. 40
IGS-LCC-1 Code Ident 07868 1 October 1982 DRAFT (Drafting) represents costs for conversion of designs to drawings, including layout and checking. DESIGN (Design Engineering) represents engineering cost to convert system specifications to detailed design. It provide inputs and guidance for drafting effort plus prototype construction and test. NSHIFT (Number of Shifts) defines the total number of work shifts operating during the production phase. NFACS (Number of Facilities) defines the number of factories, locations or facilities involved in the production phase. This variable has a direct effect on’ schedule and tooling and a lesser effect on project engineering. ESC (Escalation) is a coded value indicating the period over which costs are to be escalated. It is used to define a single constant escalation rate. DMULT (Development Cost Multiplier) is a multiplying factor used to include mark-ups for G&A, IR&D and fee, or profit in the output development costs. PMULT (Production Cost Multiplier) is a multiplying factor used to include mark-ups for G&A, IR&D and fee, or profit in the production cost outputs. COSTU (Cost Units) defines the cost units in the PRICE output. The present value for COSTU is 1000 which yields costs in thousands of dollars. 41
IGS-Lcc~1 Code Ident 07868 1 October 1982 TECDEL (Technology Delay) allows PRICE to adjust for technology lag in terms of years. Technology lag may be recorded by entering the number of years in TECDEL. HIDDEN GLOBALS are accessed through the data change option. One input controls the print formats (PRNT) and the other controls the technology consideration (ZTECH). PRINT (Print Control) defines the format for PRICE outputs. ZTECH (Technological Adjustment) introduces cost reductions for advanced technologies. ce. PRICE S Input Variables. This section describes the input requirements for the normal mode of the PRICE Software Model. It follows the PRICE S worksheet on a line=-by-line basis. A typical input worksheet for PRICE 5S is shown in Figure 4. (For a eomplete description, usage and tables relating to these input variables, use the current RCA PRICE S Reference Manual.) DESCRIPTORS INST (Instructions) is the total number of deliverable, executable, machine- level instructions which describe the size of the software development efforts. Comments, format statements, data declaration statements, etc., should not be included in the instruction count. INST is not a mandatory input to PRICE S, provided a proper combination of alternative input is given. Four alternatives are possible: 42
brojoct Title Project Category | INST Descriptors OSTART Schedule OcOsT Resource Constraints MDAT Mix DOAT New Design * CDAT Vew Code ° interface ToaT Types interface | QDAT Quantities FUNCT Sizing Data Supplemental YEAR information Program Constants GTABLE= APPL DEND MONL DONL CONL TONL QONL - STRU MULT RESO ISTART AREA OREA CREA - TREA QREA LEVEL ESC UTIL {END MINT DINT CINT TINT QiNnT TARCST’ PLTFM TSTART TCOST MMAT ~ DMAT CMAT SOURCE INTEG ~ CPLX NEWD NEWC. TENO TMAX MSTR = MOPR MAPPS = APPLB CSTR cOPR CAPPS EXPAN o r rem Se A PRR Notes: TS StS 7S SSS shh irs es Sr ee SNS URA A rSSSS SSSSs u ssrrrene-Why h-shl v PSSS ote 7 a LLL LE CIC SISOS Deets A ACS SG A ts SS CNS CSS ee SS SSS SS py SS ener erent Eo FIGURE 4, INPUT WORKSHEET FOR PRICE S 43
TGS -LCC-1 Code Ident 07868 1 October 1982 1. SOURCE and EXPANSION 2. FUNCTIONS 3. STRUCTURE and LEVEL 4. TARGET COST and RESOURCE INST is_an important cost driver. APPL (Application) is a single parameter that summarizes the application mix from real-time command and control to math and string manipulation. RESO (Resource) is an empirically derived parameter which includes such items as skill level, experience, productivity, efficiency, computer operating charges, labor and overhead rates. ° UTIL (Utilization) is the fraction of available hardware cycle time and total memory capacity time that is used. It describes the extra effort needed to adapt software to operate within limited processor capabilities. PLTFM (Platform) describes the customer's planned operating environment. It is a measure of the portability, reliability, structuring, testing and documentation required for acceptable contract peformance. PLTFM is a cost a driver. yy
IGS-LCC-1 Code Ident 07868 1 October 1982 CPLX (Complexity) provides a quantitative description of the factors concerning the design task. Factors include product familiarity, personnel skills, hardware/software design interactions and other unusual development factors. NEWD (New Design) NEWC (New Code) NEWD and NEWC are composite values (weighted averages) for the total amount of new design and new code. Schedule DSTART (Date of start) is a recommended input date of design efforts. DSTART is used to calculate cost penalties for stretch-out, phase acceleration and deviation from typical phase overlaps. DEND is the date when the design efforts end. ISTART is the date implementation efforts start. IEND is the date implementation efforts end. TSTART is the date when the test and integration efforts start. TEND is the date when the test and integration efforts end. RESOURCE CONSTRAINTS DCOST = the average cost per man-month or man-hour (Design phase - unscaled units). DMAX = the maximum man-months or man-hours per months (Design phase).
IGS~-LCC-1 Cade Ident 07868 1 October 1982 JCOST - the average cost per man-month or man-hour (Implementation phase - unsealed units). IMAX — the maximum man-months or man-hours per month (Implementation phase). TCOST - the average cost per man-month or man-hour (Test/Integration phase). TMAX ~ the maximum man-months or man-hours per month (Test/Integration phase). MIX - describes the software profile in terms of its functional application. MDAT ~- data stor age and retrieval. MONL - the on-line communication. MREA ~ the real-time command and control. MINT — interactive operations. MMAT ~ mathematical applications. MSTR - string manipulation. MOPR — operating systems. 46
IGS=-LCC-1 Code Ident 07868 1 October 1982 OPTIONAL INPUTS MAPP8 — user-defined MIX element. APPL8 = user-defined APPL category. New Design - provides information on the amount of design required for each non-zero MIX element. DDAT - data stcrage and retrieval. DONL - on-line communications. DREA - real~time command end control. ° DINT = interactive operations. DMAT - mathematical application. DSTR - string manipulation. DOPR — operating systems. 47
IGS-LCC-1 Code Ident 07868 1 October 1982 OPTIONAL INPUT DAPP8 — Applies only when MAPP8 and APPL8 are specified. New Code — provides information on the amount of new code required for each non-zero MIX element. New code corresponds to MIX and NEW DESIGN. CDAT CONL CREA CINT CSTR COPR data storage and retrieval. on-line communications. real-time command and control. ’ . interactive operations. mathematical applications. string manipulation. operating systems. 48
IGS-LCC~1 Code Ident 07868 1 October 1982 OPTIONAL INPUT CAPP8 ~ Applies only when MAPP8 and APPL8 are specified. Interface Types - specifies the number of unique hardware devices which must be supported by the software. TDAT = data storage and retrieval devices. TONL = on-line communications devices. TREA - real-time command and control devices. TINT — interactive devices. Interface Quantities - have a one-to-one correspondence with the interface types and describe the system hardware configuration. QDAT =- number of data storage and retrieval devices. QONL - number of on-line communication devices. QREA = number of real-time command and control devices. QINT ~ number of interactive devices. Sizing Data ~- represents the sizing constraints of the total software package. FUNCT (Functions) represents the total number of functional modules for the software development. FUNCT is a cost driver if INST is not entered. STRU (Structure) is an empirical variable which relates the average functional level (LEVEL) to the total number of functional modules (FUNCT). 49
IGS-LCC~i Code Ident 07868 1 October 1982 LEVEL - is the average level of the Work Breakdown Structure displayed in an equivalent functional tree diagram. CAP (Capacity) ~ CAP, UTIL and INST are related through the equation: _ INST . UTIL = CaP where CAP is the memory size expressed in terms of the number of available instructions. SOURCE AND EXPAN - is the alternate method to des.ribe program size. INST = SOURCE x EXPAN. SOURCE and EXPAN are cost drivers when INST is not entered. Supplemental Information - is additional information to complete the software YEAR - establishes the economic and technological reference points. MULT (Multiplier) is a linear multiplier for all project costs. Its primary purpose is to adjust all costs to include mark-ups, such as G&A, IR&D and project or fee. Additional mark-ups from the normal is a cost driver. ESC (Escalation) is the variable which defines the cost escalation factors from 1 January of YEAR through the end of the project. TARCST (Target Cost) is the target cost used in the calibration and design- to-eost modes. 50
IGS-LCC~1 Code Ident 07868 1 October 1982 INTEG (Integration factor for System Integration and Test) - is the normal range of INTEG from 0 to 1 with 0.5 representing a typical level of integration effort. Program Constraints GTABLE (Global Constant Table Filename) is an optional line and is used to specify a customized global table which was created and stored under a valid filename. 5.0 COSTING GROUND RULES AND ASSUMPTIONS. The current ground rules and assumptions for the G/AIT LCC analysis follow: a. Constant 1982 dollars. b. 15-year system life. ec. Operating and support cost items relating to the Government were based on the following: 1. Current AFLCP 173-10. 2. Current AFR 173-13. ONSCOSTS factors assumed as follows: SYSTEM LEVEL AOHR - Average operating hours per month —- 730.5. NENL & NDFF - Number of enlisted personnel and officers in operational crew -- contractor estimate as appropriate. 51
IGS-LCC-1 Code Ident 07868 1 October 1982 PDYE & PDYO - Per diem for enlisted personnel and officers. SUBSYSTEM LEVEL DLRA = DEPO lator rate. HPAG & JPAC = Number of pages of operating manuals and maintenance and supply manuals for IRFA and DEPO -= ROM contractor estimate. TCDE & TCIR - Training cost at DEPO and IRFA -- ROM contractor estimate. LRU LEVEL MIBM = Mean time between maintenance. The average elapsed time between maintenance actions other than schedule preventive maintenance to the subsystem. Includes mainterance actions due to causes external to the equipment (such as false alarns, directed tune-ups, operation and maintenance damage, metecrological damage, etc.) additive te the maintenance caused by true failures. (Reference AFR 80-5, Attachment 1, paragraph 16.C). QPAS - Quantity per assembly -- number of LRUs per assembly/ subsystem. UNCO ~ LRU unit cost. Contractual Precedence. The statements: "Contractor to estimate” in the ONSCOSTS test are not intended to imply precedence over the contractual rights of the Government to review and approve or require change of the data values. 52
IGS~LCC-1 Code Ident 07868 1 October 1982 6.0 COST DATA DESCRIPTION. During the proposal phase, the contractor shall summarize the preliminary and updated design-to-cost goal and life cycle cost estimate of the system. The contractor shall describe his approach in arriving at the cost data using the following outline as a guide: COST DATA Program Schedules — Summary Costing Ground Rules and Assumptions Life Cycle Costs Rank Ordered List of Systems Components Which Amount for Not Less Than 80% of the Total Estimated System LSC RDT & E Costs. Production Costs - DTC Goal Operations and Support Costs Time-Phased Program Costs Funding Spreads Rate Sensitivities Supplemental Data 7.0 DESIGN-TO-COST. a. Design-to-cost for PRICE H. With today's decreasing defense budgets and increased system costs, there is a growing interest in design-to-cost procurement which optimizes performance for predetermined cost. 53
IGS-LCC+1 ‘Code Ident 07868 1 Oetober 1982 In any design procedure, a preliminary plan must be determined before cost estimates can proceed. Once these plans are made, PRICE Mode 10 can be used to calculate hardware technology, target, production cost, schedules, manu- facturing process and design inventory. The outputs of total weight, total volume and structural weight can be evaluated to determine the feasibility of hardware parameters as shown in Figure 5. Input requirements for Mode 10 are as follows: General A; General B; Mechanical/Structural - YT, VOL and WS must be entered as a "C." MCPLXE and MCPLXS must be entered to define the technology. Electronics - Since WS must be "C," setting MCPLXE or MCPLXS to zero will establish the device as structural or electronic. Both the electronic and mechanical lines will be read. For all electronic items the mechanical line must be zero and for all mechanical items the electronic line must be zero. All other standard inputs are the same as a normal mode 1 or 2 worksheet. Additional Data ‘ USEVOL - must be entered on this line and cannot be substituted for WECF on the Electronic Line. WSCF - must be entered. TARCST - is the target production cost and must be expressed in COSTU dollars. 54
**PRICE 84 (This must be used only as the first line of the file.) Title: = MODE 10 EXAMPLE : Date: 19/20/80 Productio Guancity Prototypes Weight (ibs) Votime (ft°) 2 MECHANICAL General A aty PROTOS WT voL MODE “6 MODIFIED cress . 7 EciRP 20 2 c c _ 10 10 DESIGN TO CosT Quentity/Next NHA Integration Factors - Specification TE eamebesclein' | Higher Assembty Electronic Structural Level Generali B OTYNHA INTEGE INTEGS PLTEM 9 0 0 went . Manufacturing New fexi $i M nical / Complexity tructure icehoaiane Ws ; MCPLXS NEWST Cc 4.87 ; 75 Electronics Manufecturing New Weight/fr3 Complexity Electronics Electronics WECF MCPLXE NEWEL 46 6.72 225 Development 4st Prototyp> Development Start Complete Complete Development OSTART DFPRO _ OLPRO ° . 281 _ _@ c Production First Article Production Cost- Process Tooling =: Rate/Month Start Oslivery Complete Factor TeEque = Tooling Praduction PSTART PFAO PEND CPF PTLGTS ..- ~RATOOE 282 c c 10453 et Production Development Actual Average Unit Tol Prototypes Total Cost Data aucost . PTCOST PRCOST oTcost (Mode 7 only) Additional aria Fraction wagner Target Cost Data USEVOL WSCF TARCST (Made 10 only) .72 11 48 Notes: isc = 100 er A SSS SS A SE A FIGURE 5. PRICE H DESIGN-TO-COST INPUT 55
IGS-LCC-1 Code Ident 07868 1 October 1982 OUTPUTS — mode 10 calculates values of WT, VOL and WS that are within the constraints of the target cost, packaging densities, type of technology and schedules. b. Design-to-cost for PRICE S. The design-to-cost mode for PRICE S is used to estimate project sizes and schedules that are compatible with given target costs. In this mode, TARCST is specified and the model computes a program size consistent with project descriptors and schedule vonstraints. Running Design—-to-Cost. All input parameters required for normal operation are also required for the design-to-cost mode with the following exceptions: INSTRUCTION must be 0. SOURCE must be 0. FUNCTIONS must be 0. Either STRUCTURE or LEVEL must be 0. TARCST must be input greater than 0. CPLX must be input greater than 0. PRICE S recognizes from this combination of inputs that a DESIGN-TO-COST run is desired. TARGET COST must be in the appropriate units and must be consistent with the values entered for YEAR, MULT and ESC. If CAPACITY is entered and UTILIZATION is entered as zero, UTILIZATION will be calculated by INST/ CAP. 56
IGS-~LCC-1 Code Ident 07868 1 October 1982 ec. Design-to-cost for ONSCOSTS. ONSCOSTS does not have a design-to-cost mode but may be used as an evaluation tool in connection with a design to life-cycle cost (DTLCC) application. 8.0 TERMINAL OPERATION. a. PRICE H/S. This portion is designed to introduce the user to the On-Line System, DEC System and the IO Time Sharing System. The System is easy to use and requires only a limited acquaintance with the use of a time sharing system. The first thing to do is to start the terminal session by turning on the terminal and setting the switches according to the following: ’ : FUNCTION TERMINAL SWITCH SETTINGS POWER DUPLEX CHARACTERS/ SECOND MODE PARITY QSL After the terminal switches have been properly set, the on-line-system (OLS) computer system can be accessed by the telephone as follows: (1) Dial the appropriate OLS telephone number for your area. (2) Wait for the high-pitched tone which indicates that you are in . contact with the computer. If you get a busy signal or no answer, call the OLS representative. 57
IGS+LCC~1 Code Ident 07868 1 October 1982 (3) Upon hearing the tone, press the telephone handset firmly into the terminal cradle. When the light appears, the system will respond with the proper message. Proceed to answer the questions. b. ONSCOSTS. This portion of the section describes the procedures for running the ONSCOSTS model. Since the ONSCOSTS model may be run by a remote or direct terminal, check Appendix I for complete detail. - 9.0 PRODUCTION PLAN. Base the cost of the production on PRICE H‘ S models using a multi-year procurement plan with the following buy categories: (NOTE: The following buy categories are subject to change. The Program Office will submit the appropriate changes as required.) | YEAR WORLDWIDE. THEATER SELECTED AREA 1984 “40 te) 0 1985 16 0 0 1986 41 14 197 1987 31 26 222 1988 8 32 122 1989 0 29 13 1990 0 9 0 TOTAL 106 110 | 554 The average unit production cost goal shall be priced in constant 1982 dollars. Use a learning curve of 95% for the total production of the G/AIT. Prepare and submit within 90 days when the cost variance is greater than 10%. 58
IGS-LCC-1 Code Ident 07868 1 October 1982 10.0 COST OUTPUT. This section describes the information presented on typical PRICE H, PRICE S$ and ONSCOSTS output reports. These output reports provide the user with a complete, coherent summary of principal factors and implications which should be critically examined and justified before project costs are validated. For PRICE H and PRICE S, all input parameters are printed just as they are entered from the input worksheet. All values calculated by the PRICE models, except for costs, are identified by an asterisk. The typical PRICE H output report is the minimum report required; however, additional reports are available and may be submitted as required. PRICE S is capable of submitting the following outputs reports «= basic report, resource/complex ity sensitivity report, instruction/application sensitivity report, schedule effect summary, monthly progress summary and resource allocation profiles. The depth of output for the ONSCOSTS mode consist of cost totals, cost details, statistic details, costs as a percent, cost. differences from the basic, a single line showing the initial, annual and/or total cost, or a Single statistic. De pending upon the command issued, up to 17 cost details and up to 12 statistics may be printed as outputs. Outputs may be directed to a preallocated file or to an input time-sharing terminal. 59
IGS-Lcc-1 Code Ident 07868 1 October 1982 11.0 CONSOLIDATED COSTS. The consolidated costs include the compilation of acquisition costs (PRICE H and PRICE S), plus the operations and support costs provided by ONSCOSTS. Since these outputs are separate, the total cost for each shall be incorporated as follows: ACQUISITION COST PRICE H---------~---—---~-—=- $ PRICE S-~---~--~--~-—------ --$ ONSCOSTS-~~-~----—-----=-0——- $ Total Consolidated Cost $ 60
IGS-LCC=1 Code Ident 07868 1 October 1982 APPENDIX I OPERATION AND SUPPORT COST MODEL (ONSCOSTS ) This appendix provides a complete description of the input variables for ONSCOSTS which is an Operation and Support Cost model derived from the equations originating from the Air Force Logistics Command cost model. This depth of input and output plus the built-in options provide the capability to request numerous diversified estimates and trade-off studies. 61