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Will-Cost and Should-Cost Management – It’s Not Business As Usual

Author: Zachary Jasnof

Category: White Papers

In April, 2011 Under Secretary of Defense for Acquisition, Technology & Logistics Ashton Carter issued the Memorandum – “Implementation of Will-Cost and Should-Cost Management”. The memo defines implementation of Should-Cost and Will management for all ACAT I, II and III programs and lists “Selected Ingredients of Should-Cost Management”. Thus, each organization involved with these programs must successfully deal with the challenges or planning, coordinating and managing Should-Cost/Will-Cost programs and have the necessary tools to quantitatively manage them through their life cycle. This extends much further than parametric estimating, and includes integrated database management to capture, store and analyze historical data. In addition, a fully integrated framework is needed to successfully store, analyze and produce both budgetary and Independent Cost estimates. This paper, using the TruePlanning® model as an integrating framework, explores:

• Benchmarking using cost research knowledge databases based on both military and commercial programs in addition to specific program history.

• Supply chain concepts to analyze and understand impact of competition and cost incentives.

• Robust capability to quickly select alternative technologies/materials and quantify impact on lifecycle costs.

• Ability to model different vendor scenarios.

• Understanding of key technology and schedule parameters their interaction on cost.

These concepts will be demonstrated via a case study approach to show how you organization can implement a comprehensive framework for Should-Cost and Will-Cost Management.

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