Accession Number:

ADA275659

Title:

Guidance for Estimating Consumable and Depot Level Reparables Cost

Descriptive Note:

Corporate Author:

ARMY COST AND ECONOMIC ANALYSIS CENTER WASHINGTON DC

Personal Author(s):

Report Date:

1993-09-01

Pagination or Media Count:

15.0

Abstract:

The purpose of this paper is to provide guidance for including surcharges and credits in cost estimating for Depot Level Reparables and Consumables in Baseline Cost Estimates BCE, Independent Cost Estimates ICE, and other cost estimating products. Two critical components of the U.S. Army Cost and Economic Analysis Centers USACEAC mission are to develop and disseminate cost and economic policy and to provide timelyquality cost and economic analysis support to the Planning, Programming, Budgeting, and Executive System PPBES and the Army Staff decision making process. New cost estimating procedures are required because of two important DMRD changes the inclusion of surcharges in Army Master Data File AMDF prices and the change from procurement funding to operations and maintenance funding for Replenishment DLRs under the Supply Management, Army SMA, formerly Army Stock Fund ASF. Specifically, DMRD 904 Stock Funding of Reparables affected the cost element structure and the definition of costs components used in Army resource management, particularly in the management of operating and support costs. Under this concept, units no longer receive replacement DLRs as free issue. Therefore, cost analysts must account for surcharges and credits when developing systems life cycle costs.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis
  • Government and Political Science
  • Military Forces and Organizations
  • Logistics, Military Facilities and Supplies
  • Military Operations, Strategy and Tactics

Distribution Statement:

APPROVED FOR PUBLIC RELEASE