Korean Multi-Role Helicopter Program Standardizes Bidder Proposals:
PRICE Cost Estimating Models Will Ensure Cost Consistency in
Multi-Billion Dollar Military Program
By PRICE Systems Products Division

The Korean Multi-roll Helicopter (KMH) Program has mandated that all systems integrators and contractors bidding on the program use PRICE's suite of cost estimating tools. The KMH Program can thus ensure a common basis from which the proposals can be evaluated. Systems integrators will be required to support the cost estimates in their proposals using PRICE's Software, Hardware (development) and Hardware Lifecycle (maintenance) cost models.

The KMH Program is aimed at developing next-generation military helicopters that will replace Korean Armed Forces' current inventory of aging aircraft for the ROKG (Republic of Korea Government). The Program, with an estimated budget of 15 - 30 trillion Won (approximately US$30 - $50 billion), was initiated in 2003 and is slated for an in-service date of 2009. Several agencies within the ROKG are overseeing the KMH Program, including the Ministry of National Defense and the Agency for Defense Development, both of which are PRICE customers.

"Previous experience in using PRICE's estimating tools has shown us that we will have credible and consistent cost data we can rely on in our bidder evaluations," said General Jung Won Mo, Chief of Planning and Coordinating Office. "Our estimating development effort was reduced by more than 2/3, so the bidders can expect to gain such efficiencies as well."

Both Korean-based contractors and global systems integrators are involved in the KMH Program. It is estimated that seven systems integrators will develop proposals, which are due in June. More than 100 individual companies will support the bids using PRICE's TruePlanning Estimating tools to specify costs for hardware, electronic and other components. By July, the evaluation will narrow to three contractors for follow-on negotiations. The finalist will be announced in September.

Click here to learn more about the KMH Program Success

New Training Course Added:
Software Project Planning and Control with True COCOMO II

This course is being tailored for on-site agency and contractor training

Duration: 2 Days
Format: Workshop/Lecture

COnstructive COst MOdel version II (COCOMO II), a software cost and estimation model developed by the University of Southern California's Center for Software Engineering (CSE), assists in the budgetary planning and schedule estimation of software development projects. Through the flexibility of COCOMO II's three-stage sub-models, a software project manager or cost analyst/estimator can develop a model(s) of projects in order to identify potential problems in resources, personnel, budgets and schedules both before and while the potential software package is being developed. This 2-day course provides a basic instruction in the use of the True COCOMO catalog. Real-world problems are used to challenge trainees and reinforce important concepts.

For additional details, please contact:
Corrine Tarcelli, Client Relations Manager
856.608.7206, corrine.tarcelli@pricesystems.com

PRICE Client Wins Prestigious Management Leadership Award for Exemplary Performance and Leading a Significant DoD Program Turnaround
By PRICE Consulting Division

PRICE Systems congratulates its client, Army Colonel Jacob Haynes, the Department of Defense's Standard Procurement System (SPS) Program Manager, for winning the Government Management Leadership Award.

"We congratulate Col. Haynes, who serves as an inspiration for his leadership, experience and dedication," said Anthony DeMarco, president of PRICE Systems. "We at PRICE stand proud to be a part of the SPS Program that is transforming the way the DoD does business."

The GCN Management Leadership Awards program is designed to recognize government career workers whose exemplary record of performance and leadership has inspired others to high performance and resulted in extraordinary delivery on mission. PostNewsweek Tech Media is the award's sponsor, and announced the winner in the April 19th issue of Government Computer News.

In his 24 years of active military service, Army Colonel Jacob Haynes has established a significant track record of leadership and achievement, and most recently has exhibited exceptional program management skills by taking the helm of the Standard Procurement System (SPS) effort, leading his team in a significant program turnaround.

"I'm honored to receive such prestigious recognition, but I must give the lion's share of the credit to the outstanding members of the SPS team and to other professionals with whom I've had the good fortune to work throughout my career," said Haynes. "It's extremely rewarding to know that SPS is making a difference in the Global War on Terror. This award really is a testament to the United States Army and the opportunities it provides for lifetime career achievement." SPS is supporting American Warfighters worldwide, most recently in contingencies in Iraq and Afghanistan. In Iraq, Soldiers are using the mobile version of SPS called the Battle Ready Contingency Contracting System (BRCCS).

Click here for a copy of the Government Computer News article
Click here to learn more about the Standard Procurement System (SPS)
Click here to learn more about PRICE's Program Affordability Management solutions

PRICE Cost Experts Co-Author New Parametric Estimating Book with CAM-I
Powered by PRICE Research™ (Arlene Minkiewicz and Todd Geiser)

The Closed Loop: Implementing Activity-Based Planning and Budgeting reflects a powerful new budgeting approach that improves project calculations.

Although current budgeting practices and processes have many problems, the budget is here to stay, and accurate and reliable cost estimates will remain the cornerstone of effective project management. For years, parametric cost estimating has been an invaluable tool for cost estimators in the Aerospace and Defense industries as well as many other commercial businesses. More recently, these same industries have started to adopt Activity-Based Cost and Budgeting systems to help increase their control and management of overall financing. Although these two methodologies differ in how they are applied and what they are used for, a careful comparison of the two indicates that they are more alike than different. Realizing these facts and wanting to bring these two methods closer together, PRICE Systems decided to invest in the CAM-I (Consortium for Advanced Manufacturing - International) initiative to study Activity-Based Budgeting. The result, a new book titled The Closed Loop: Implementing Activity-Based Planning and Budgeting.

The contributions of Arlene Minkiewicz and Todd Geiser were twofold. Both subject matter experts participated in the book's conception and development. When the initiative began in June 2000, The Closed Loop was nothing more than chicken scratch written on the back of a cocktail napkin. Over the next several years, Arlene and Todd helped form the group that would develop a model (The Closed-Loop Model) for organizations to take control of their planning and budgeting processes.

Calendar of Events

May 2004
Public Training Curriculum
5/03: PRICE HL - The Hardware Life Cycle (5 Days, Arlington, VA)
5/11: EVM - Earned Value Management (2 Days, Arlington, VA)
5/17: True S - Software Project Planning & Control (3 Days, Mt. Laurel, NJ)
5/19: True S for PRICE S Users (Free 1/2 Day Online Workshop)

May 10, 2004
PRICE Systems President to Deliver General Session Address
at the 26th Annual ISPA International Conference
Frascati, Italy
General Session Address:
> Driving the Parametric Evolution with Innovation and Persistence
Anthony DeMarco, President and Managing Member
Workshop sessions will include other PRICE cost and project control experts
Learn more and register!

May 14, 2004
Call for Papers: 24th Annual European Symposium
Athens, Greece
PRICE Systems is now accepting papers for its 24th Annual European Symposium. Submissions should be based on your experiences using the PRICE Cost Models.
Deadline for submission is May 14, 2004
Actual date of event is November 17-19, 2004
Learn more about this submission!

June 15, 2004
SCEA National Conference & Education Workshop
(The Society of Cost Estimating and Analysis)
Manhattan Beach, CA
PRICE Systems Presentations:
> Predictive EVM (Earned Value Management)
William Mathis, Director of Civilian Programs
> Estimating Future Capability
Bruce Fad, Vice President of Products Division
> Estimating Software Costs for Software Products
David Seaver, Director of Software Cost Center of Excellence
> The Real Costs of Developing COTS-Based Systems
Arlene Minkiewicz, Chief Scientist
> Tackling Cost Challenges of Network-Centric Warfare
Todd Geiser, Senior Technologist
Learn more and register!
Also visit PRICE Systems at booth #6