Cost Estimating

Cost Estimating

DoD Cost Estimating Guide

The DoD Cost Estimating Guide (v1.0), published December 2020, 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, V1.0, Dec 2020

Features of the DoD Cost Estimating Guide:

  • 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
  • Expected to evolve and be updated over time
Chapter Title
1 Purpose, Policy, Properties, and Definitions
2 The Cost Estimating Process
3 Program Definition
4 Cost Estimate Basis
5 Identify, Collect, Validate, Normalize, and Analyze Data
6 Select Cost/Schedule Estimating Methods
7 Build Cost Estimate Model (includes Initial Results)
8 Final Documentation and Results
9 Next Analysis

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).

DoD Cost Estimating Guide, Version 2.0 - Coming Soon!

The next revision of the DoD Cost Estimating Guide will include a case study appendix that will walk through the cost estimating process using an example program to provide estimators with the necessary thought process to develop a sound cost estimate.

Additional Feature Includes:

  • Statute/Policy updates
  • Recommended reading list
  • Commodity-specific WBS/CES examples
  • Expanded guidance for Middle Tier of Acquisition
  • Expanded discussion of community tools, models, and resources