USAF ILA Handbook - ACC Practice Center - Defense Acquisition ...

D-4. Product Support Budgeting and Funding
Cost estimates for programs in pre-systems acquisition or system development and demonstration
are usually focused on Life-Cycle Costs (LCC). More refined and discrete Life-Cycle Cost
Estimates (LCCE) may be used in the PO to support internal decision-making such as evaluating
design changes and assessing producibility, reliability, maintainability, and supportability
considerations. As programs mature and transition from production and deployment to
sustainment, cost estimates that support the acquisition system or program management may be
expanded to address TOC. PMs will determine the costs associated with solutions to satisfy
mission capability and life-cycle supportability requirements. Adequate resources must be
programmed to fully fund product support and sustainment planning.
Evaluation Criteria
Milestone
B C FRP
• Have product support funding requirements been identified and
X U U
documented in a funding strategy document
• Are product support funding requirements developed using cost as an X U U
independent variable Have accepted cost estimating methods and risk
management principles been applied
• Have LCCEs, including cost-reduction efforts, been developed and X U U
validated to optimize TOC and schedule
• Has the product support activity defined and established the level of X U U
personnel, material, and other direct costs, including subcontractor and
vendor effort, needed to fully carry out its planning and implementation
functions for the entire product support strategy
• Do funding documents support the budgetary requirements for the X U U
product support strategy outlined in the LCMP
• Are product support and sustainment funding requirements identified in X U U
the APB Does the APB contain cost parameters (objectives and
thresholds) for major elements of program LCCs (or TOC, if available)
• Have all funding requirements been identified for production, fielding, X U U
and sustainment of the system, including funding for training courses,
trainer development, procurement, modification and concurrency as
appropriate
• Are the correct appropriations identified for each product support X U U
requirement
• Have appropriate decisions been made regarding the type of funds used X U U
for procurement of PBL resources (e.g., use of Air Force Working
Capital Fund (AFWCF) for long-term spares support for systems that
have been procured and deployed rather than use of multi-year
increments of appropriated funding)
• Are funding shortfalls and impacts identified, prioritized, fully
X U U
documented and addressed to the PM and resource sponsor
• Are funding requirements realistic and appropriately time-phased X U U
Version 1: Jan 2006 54
Air Force Independent Logistics Assessment Handbook