Cost Estimating

Cost Estimating

DoD Cost Estimating Guide

The DoD Cost Estimating Guide (v2.0), published January 2022, is an update to the guide previously published in January 2021. It provides the cost community with a DoD-level resource for a consistent and repeatable cost estimating process guide (not mandate) developed by the OSD Cost Assessment & Program Evaluation (CAPE). It was designed to be both a starting point for new cost estimators and an excellent resource for the experienced cost analyst.

DOD Cost Estimating Guide, V2.0, Jan 2022

Features of the DoD Cost Estimating Guide v2:

  • A guide centered around a generalized DoD Cost Estimating Process that provides a description and explanation of cost estimating basics
  • Applies to all types of cost analyses
  • Non-Component specific
  • Very limited use of “must” and “shall”
  • Uses consistent terminology in order to provide a clear foundation for new analysts
  • Consolidated lists of references and training resources
  • A link between DoD Policies and Component Guides
  • Statute/Policy references reflective of recent changes
  • A recommended reading list focused on cost estimating, acquisition, and weapon system commodities
  • Commodity-specific WBS/CES examples
  • Expanded information on Middle Tier of Acquisition programs
  • Expanded discussion of community tools, models, and resources
  • A new case study demonstrating the cost estimating process using a notional program

Expected to evolve and be updated over time, the DoD Cost Estimating Guide was created in collaboration with the Air Force, Army, Navy, and Marine Corps cost communities, as well as Missile Defense Agency (MDA), National Reconnaissance Office (NRO), Naval Postgraduate School (NPS), Air Force Institute of Technology (AFIT), Defense Acquisition University (DAU), Government Accountability Office (GAO), and National Aeronautics & Space Administration (NASA).