Survey of Step 1

Process Tasks

• Clearly define the estimate’s purpose.
• Determine the estimate’s overall scope.
• Determine the required level of detail for the estimate, which should be consistent with the level of detail available for the program.

Best Practices

The cost estimate includes all life cycle costs

• The cost estimate includes both government and contractor costs of the program over its full life cycle, from inception of the program through design, development, deployment, and operation and maintenance to retirement of the program. Items excluded from the estimate have been documented and justified.

Likely Effects if Criteria Are Not Fully Met

• If the life cycle cost estimate does not include all costs, then the estimate most likely cannot fully meet the comprehensive characteristic of a high-quality cost estimate and also may not meet the well-documented, accurate, or credible characteristics. For example, if the cost estimate is missing some cost elements, then the estimate may not be credible because the total cost will be underestimated and risks and uncertainty associated for missing elements will not be accounted for in a quantitative risk and uncertainty analysis.