Briefing

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Cost Analysis Data Requirement (CADRe)
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Agenda

• Explain the CADRe
• Discuss project concerns
• Obtain agreement on how data will be collected
  and when
• Agree on PM approval process

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Background

• Nearly all NASA projects sustain cost overruns
• Cost risks are not explicitly addressed in most
  project estimates
• Quality of cost estimates vary
• History of projects not recorded so we have
  difficulty learning from the past
• When cost data are collected, they are not
  disseminated or made available to others

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2004 GAO Report Findings

• 1992 GAO study of NASA cost analysis
• 29 projects median cost growth 77
• 2004 GAO study
• 27 projects median cost growth 13
• 2004 GAO recommendations
• Develop an integrated plan including
• Guidance for rebaselining
• Enforced use of EVM
• Staff and support for cost-estimating and EVM
• Establish standard LCCE framework
• Include full life cycle
• Use a standard WBS that encompasses both in-house
  and contractor efforts
• Use a Cost Analysis Requirements Description
  (CARD)
• Develop Independent Cost Estimates (ICEs) at each
  milestone
• Use cost risk assessments
• Prohibit projects from proceeding through the
  review and approval process without above

Hinders
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2004 Aldridge Commission Recommendations

• Recommended an independent cost analysis
  organization similar to DoD CAIGs (Cost Analysis
  Improvement Group)
• Independent cost estimating organization
• Maintains a corporate data base of historical
  project cost information
• Uses parametric cost estimating procedures
• Recommends final cost position to approving bodies

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What is the CADRe?

• A three-part document that
• Describes a NASA project, at a given point in
  time, to allow an independent entity to estimate
  the projects life cycle cost (Parts A B)
• Describes changes to the project since the
  previous CADRe submission (Part A)
• Captures the NASA projects projected and actual
  life cycle costs within the projects and a NASA
  Cost Estimating Work Breakdown Structures (WBS)
  (Part C)
• The CADRe is not a project monitoring tool for
  external organizations

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Why Are CADRes Needed?

• Provides approved basis for independent estimates
• Describes project mission and approach that
  facilitates understanding
• Explicitly addresses risk areas
• Contains objective technical data that tend to
  drive costs
• Documents reasons for cost and schedule growth so
  that agency can better explain to stakeholders
• Provides historical record of cost, schedule, and
  technical project attributes so that estimators
  can better estimate future similar projects
• Required by NPR 7120.5

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When are CADRes Required?
Flight Projects Life Cycle Phases
Pre-Phase A Concept Studies
Phase A Concept Development
Phase B Preliminary Design
Phase C Detailed Design
Phase D Fabrication, Assembly Test
Phase E Operations Sustainment
Phase F Disposal
CDR
Launch
Traditional Waterfall Development or
Directed Missions
2
1
1a
2a
3
4
5
Down Select Step 1
AO-Driven Projects
CR
Select Step 2
1
2
2a
3
4
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Legend
GPMC Mission Decision Review/ICR
All parts of CADRe due 30 days after site review
CADRe, All Parts 90 days after launch, as built
or as deployed configuration
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4
All parts of CADRe due 30 days after site review
1
CADRe update, if necessary
2a
CADRe update, if necessary
1a
CADRe, Part C only during last year of planned
project life
5
Update as necessary 30 days after CDR
CADRe delivered based on Concept Study Report
(CSR) and winning proposal
3
1
1
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How Will the Data Be Used?

• Prepare more realistic cost and schedule
  estimates from analogous data contained in the
  CADRes
• Assess proposed project schedule in light of
  performance of similar past projects recommend
  adjusted schedule and costs to PMC
• Assess extent to which heritage percentages are
  achieved adjust estimates accordingly
• Assess software development productivity of
  historical data adjust estimates accordingly
• Assess software reuse adjust estimates
  accordingly
• Assess software code growth adjust estimates
  accordingly and
• Analyze reasons for cost growth
• Provide better answers to OMB and Congress
• Develop policy strategies to rectify

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How Will the CADRes be Developed?

• NASA PMs are responsible for CADRes per NPR
  7120.5
• Process starts with kickoff meeting with PM
• PAE is paying for development and PM approves
• Developing CADRes only for projects launched
  after 1995
• Current development priority
• Projects under development with a milestone
  review during the FY where an ICE is due
• SRR (P-NAR)
• PDR (NAR)
• Projects that will launch during the FY
• Past projects
• Launch
• SRR
• End of Mission (EoM)
• PDR
• CDR

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How Will the CADRes be Developed? (Concluded)

• PAE/CAD conducts kick off meeting with Program
  Exec, Project Manager staff, Mission
  Directorate Cost Focal Point, IPAO cost
  analyst)
• Explain nature of requirement and expectations
• Agree how CADRe will be developed
• If performed by support contractor, determine how
  data will be provided
• Access provided on web site or provided directly
• Agree on RFP language or DRD (active projects
  only)
• Support contractor develops CADRe from supplied
  data
• Center staff or PAE reviews for compliance with
  CADRe templates developer revises as necessary
• Support contractor submits to PM for approval
  developer revises as necessary
• PM signs and forwards to Mission Directorate
• For SMD, Claude Freaner monitors, coordinates
  with PEs, and submits to PAE/CAD
• For ESMD, Arlene Moore monitors, coordinates with
  ESMD management, and submits to PAE/CAD
• PAE (thru support contractor) enters CADRE into
  One NASA Cost Engineering Database (ONCE)

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CADRe Data Collection Process
NF 533 EVM data
NASA Accounting Database
NASA EVM data
PM Cost Repository
Cost, technical program data
Cost estimates actuals
PMs Systems Engineering Repository
MD Reviews Approves
MELs other SE documentation
CAD Accepts Stores
Project Manager
CADRe
CADRe
Cost estimates actuals
Technical Program data
CADRe
CADRe
CADRe
PAE/CAD Reviews
CADRe Data (ONCE)
CADRe comments
One NASA Cost Engineering Database (ONCE)
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Who Will Have Access to CADRes?

• Developed CADRes to date are all contained on CDs
  and in the possession of PAE/CAD
• ONCE Access Rules
• HQ personnel will have access to all CADRe data
• NASA center personnel will have access to
• Only their own pre-launch CADRe data
• All CADRes after missions have been launched

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Data Collection Agreements

• PM POC
• Data sources
• Data access
• Development and approval schedule
• Contracting language and/or DRD

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Points of Contact

• NASA
• Tom Coonce
• [phone] (O)
• [phone] (M)
• Eric Plumer
• [phone](O)
• 202 420-0970 (M)
• SAIC
• Michael Copeland
• [phone] (O)
• [phone] (M)

• Aerospace
• Debra Emmons
• [phone] (O)
• [phone] (M)
• MCRI
• Raymond Covert
• [phone] (O)
• [phone](M)
• Larry Wolfarth
• (571)-216-2224 (O)