Acquisition Reform (WSARA) Webinar Discusses Lessons Learned and Way Forward
If you are interested in government acquisition reform be sure to register for this webinar. Bob Hunt, Galorath VP of Services, was a senior Pentagon official the last time around and will share both what was learned from before and how to apply these to the current WSARA (Weapons System Acquisition Reform Act). Here is the webinar invitation.
Acquisition Reform (WSARA) And How It Impacts Your Estimations: Looking Forward And Lessons Learned
Weapons systems acquisition reform has been a recurring topic within the Department of Defense for many years.
Mr. Bob Hunt, Galorath’s V.P. of Professional Services, was a Senior Pentagon official during the previous Acquisition Reform initiatives. He has since been active in the contractor community. Mr. Hunt will offer a unique perspective on how these acquisition reforms will impact both the Government and the contractor estimating communities.
This WebEx will discuss the unique implications of the latest reform on the cost and schedule estimating process, including:
• Cost Assessment & Program Evaluation
• Directors of DT&E and Systems Engineering Performance Assessments & Root Cause Analysis
• Assessment of Technology Maturity
• Trade-Offs in Cost, Schedule and Performance
• Critical Cost Growth in MDAPs
• Earned Value Management
• Required Reports
• Cost Assessment & Program Evaluation
• How some of the SEER applications can be advantageously applied for Pre-milestone A estimates
• And much more!
Much (or some) of this has been tried before, e.g. Goldwater-Nichols Department of Defense Reorganization Act of 1986; also discussed in “The Cost Analysis Improvement Group: A History” by Srull, Margolis, and McNicol. WSARA is being driven by the continued and “sometimes surprising growth” in the cost and schedule of Major Defense Acquisition Programs (MDAPs).
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Date and Time
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March 9, 2010
8:30 am, Pacific Standard Time (GMT -07:00, San Francisco)
11:30 am, Eastern Standard Time (GMT -05:00, New York)
4:30 pm, London, England
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Presenter
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Bob HuntVP of Services, Galorath Incorporated
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To register for the online event
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This complimentary event requires registration with a corporate email address.
1. Go to https://galorathevents.webex.com/galorathevents/onstage/g.php?t=a&d=669660618
2. Click “Register”.
3. On the registration form, enter your information and then click “Submit”.
Once the host approves your enrollment, you will receive a confirmation email message with instructions on how to join the event
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
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DoD Contractor Estimating Systems Deficiencies Can Withhold 10%
A draft rule for business systems has been posted by the Government allowing the withholding of 10% of payments for each of six systems, with a maximum of 50% withholdings. These systems include contractor business systems including 1) estimating, 2) purchasing, 3) accounting, 4) earned value, 5) property and 6) material management.
In 2009 the congressionally chartered Commission on Wartime Contracting stated in its June 2009 interim report to Congress that:
“Weak control systems increase the risk of unallowable and unreasonable costs on government contracts”
Comments will be accepted until March 16, 2010. Email to dfars@osd.mil with subject DFARS Case 2009-D038.
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
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Improving Earned Value With Statistics
I attended a very interesting session presented by Eric Druker and Dan Demangos of Booz Allen Hamilton and Richard Coleman of Northrop Grumman Information Systems, at the Department of the Navy Cost Analysis Symposium (DONCAS) last week covering improving Earned Value (EVM) analysis with statistics. The speakers covered many of the common points regarding EVM weaknesses and showed some work they had done in helping solve some of these issues.
I found it interesting that SEER-SEM’s Parametric Progress analysis solves the same problems by looking at EVM type data and parametrics in concert.
The Problem Statement from the briefing included:
- Currently, the traditional Earned Value Management calculations suffer from several shortcomings that lessen their viability as a cost estimating tool
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
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More Resources For Cost Engineering
1. The Association for the Advancement of Cost Analysis (AACE) has a cost estimating library of publications that may be purchased.
2. NAVSEA Cost Estimating Handbook, 2005.
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
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DoD Releases Reliability, Availability, Maintainability, and Cost Rationale Report Manual
I received notification of the new manual including Cost Rationale along with reliability, availability, and maintainability. This revision adds cost to the previous reliability, availability, maintainability document. Here is the email announcement:
The Office of the Secretary of Defense and the Joint Staff collaborated on the Reliability, Availability, Maintainability-Cost (RAM-C) Report Manual to assist combat developers, project managers, and engineers to design RAM into systems early in a program. The manual supports life cycle implementation of the Sustainment metric, for which the Chairman of the Joint Chiefs of Staff (CJCS) issued new guidance in May 2007. The Sustainment metric consists of an Availability Key Performance Parameter (KPP) and two supporting Key Systems Attributes (KSAs): Reliability and Ownership Cost. The CJCS guidance requires programs under development to create a balance between RAM performance in the field and the related costs of providing that performance-a distinct paradigm shift within the acquisition community that, once fully implemented, should result in improved value for major acquisition programs.
http://www.acq.osd.mil/sse/docs/DoD-RAM-C-Manual.pdf
Additionally the manual discusses ownership cost as summarized below:
“Ownership Cost KSA. Ownership Cost provides balance to the sustainment solution by ensuring that the Operations and Support (O&S) costs associated with availability (e.g., maintenance, spares, fuel, support.) are considered in making program decisions. For consistency and to capitalize on existing efforts in this area, the Cost Analysis Improvement Group O&S Cost Estimating Structure will be used in support of this KSA. (See the structure at the following website: http://dcarc.pae.osd.mil/reference/osd_ces/ ndex.aspx). Appropriate sections of this document cover the specific elements involved in cost estimation.”
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.

