My title
  • Predictive Analytics for Improved Cost Management  

PRICE Systems CEO: TruePlanning® Can Help DoD Agencies Comply With New Efficiency and Productivity Initiatives

Mt. Laurel, NJ / December 1, 2010 / PRICE Systems (pricesystems.com) CEO Anthony DeMarco said today that his company's TruePlanning® estimating software, particularly its advanced "should-cost" capabilities, can help government agencies comply with a recent initiative to cut $100 billion from the Defense Department budget during the next five years via more rigorous procurement practices. PRICE's customers include the U.S. Army and Air Force and the U. S. Naval Air Systems Command.

At a Pentagon press briefing last month, Defense Secretary Robert M. Gates introduced a memo specifying 23 actions designed to reduce the DoD budget and increase productivity. Among them was a call for more accurate cost estimation, particularly should-cost projections. He said that the Pentagon will now require program managers to submit, in addition to cost estimates under business-as-usual conditions, estimates of what the programs should cost if managed more effectively and brought in on budget.

"To meet these objectives it is imperative that DoD agencies design to affordability and to accomplish this they need state-of-the-art estimating software," said DeMarco. "TruePlanning is the industry's most effective enterprise and systems estimating solution; it provides faster should costs and more credible independent cost estimates."

As evidence of this, DeMarco pointed to PRICE’s contribution to the U. S. Army Crusader program for which it won an Outstanding Supplier award for its CAIV (Cost As an Independent Variable) analysis and parametric model calibration. According to a Report to Congress concerning the Crusader program: "The Crusader cost per system has continually gone down from an initial estimate of more than $16 million per system to less than $11 million—a 34 percent reduction in unit cost."

"TruePlanning can help DoD agencies obtain more competitive and accurate estimates by determining if the proposed technical baseline is cost-effective against other alternatives," said DeMarco. "Because accurate cost estimation is dependent on having the right information, TruePlanning ensures that estimates are based on appropriate, traceable historical data points."

Originally released in 2003, TruePlanning estimates the scope, cost, effort and schedule for software, hardware and IT projects; mechanical and electronic lifecycle programs; and system of systems configurations. For seat and site licensing information telephone 856-608-7200 or visit www.pricesystems.com.