The Department of Defense has issued a document establishing policy and outlining the procedures for conducting cost analysis, cost estimation and cost data collection within DOD.
Susanna Blume, the department's director of cost assessment and program evaluation or DCAPE, approved the latest DOD Instruction, which took effect Thursday, Oct. 24.
The issuance states that independent and sound cost estimates are key to acquisition oversight and support effective resource allocation decisions throughout the planning, programming, budgeting and execution process.
The document outlines the responsibilities of the DCAPE, deputy director for cost assessment and DOD component heads and provides details on cost estimation requirement and procedures.
DOD also added a section for cost analysis activities covering major capability acquisition, middle tier of acquisition, defense business systems, acquisition of services and software acquisition.