Chapter 6: Step 3: Define the Program - Technical Baseline Description

Definition and Purpose

Key to developing a reliable estimate is having an adequate understanding of the acquisition program—the acquisition strategy, technical definition, characteristics, system design features, and technologies to be included in its design. The cost estimator can use this information to identify the technical and program parameters that will bound the cost estimate. The amount of information contained in the technical baseline directly affects the overall quality and flexibility of the estimate. Less information generally results in more assumptions being made, thus increasing the uncertainty associated with the estimate. Without this information, the cost estimator will not be able to identify the technical and program parameters that underpin the cost estimate and the quality of the cost estimate will be compromised. Therefore, the importance of this step must be emphasized because the final accuracy of the cost estimate depends on how well the program is defined.

The technical baseline should document the underlying technical and program assumptions necessary to develop a cost estimate and update changes as they occur. The objective is to provide a common description of the program—including a detailed technical, program, and schedule description of the system—from which all life cycle cost estimates (LCCEs) will be derived. The technical baseline can be a single document or several documents stored in one location. It is also important that the technical baseline contain no cost data so that it can be used as the common baseline for independently developed estimates.

In addition to providing a comprehensive program description, the technical baseline is used to support life cycle costs and identify specific technical and program risks. In this way, it helps the estimator focus on areas or issues that could have a major effect on cost.