METRICS | OWNERSHIP COST

Ownership Cost provides balance to the Sustainment solution by ensuring that the Operations and Support (O&S) costs associated with materiel readiness are considered in making decisions.

For consistency and to capitalize on existing efforts in this area, the Cost Analysis Improvement Group's O&S Cost Estimating Structure will be used in support of this KSA. Only the following cost elements are required: 2.0 Unit Operations (2.1.1 (only) Energy (fuel, petroleum, oil, lubricants, electricity)); 3.0 Maintenance (All); 4.0 Sustaining Support (All except 4.1, System Specific Training); 5.0 Continuing System Improvements (All). Fuel costs will be based on the fully burdened cost of fuel. Costs are to be included regardless of funding source.

The KSA value should cover the planned lifecycle timeframe, consistent with the timeframe used in the Materiel Availability KPP. Sources of reference data, cost models, parametric cost estimating relationships and other estimating techniques or tools must be identified in supporting analysis. Programs must plan for maintaining the traceability of costs incurred to estimates and must plan for testing and evaluation. The planned approach to monitoring, collecting, and validating operating and support cost data to supporting the KSA must be provided.

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An MH-60S Sea Hawk helicopter delivers cargo to the USS Makin Island during a replenishment-at-sea mission with the USNS Patuxent under way in the Gulf of Aden, May 4, 2012.  
U.S. Navy photo by Petty Officer 2nd Class Dominique Pineiro

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