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Department of Defense INSTRUCTION

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DoDI 5000.02, January 7,

DoDI 5000.02, January 7, 2015 consistent with DCAPE study guidance and the DCAPE-approved study plan. In the memorandum, the DCAPE assesses: (1) The extent to which the AoA: (a) Examines sufficient feasible alternatives. (b) Considers tradeoffs among cost, schedule, sustainment, and required capabilities for each alternative considered. (c) Achieves the affordability goals established at the MDD and with what risks. (d) Uses sound methodology. (e) Discusses key assumptions and variables and sensitivity to changes in these. (f) Bases conclusions or recommendations, if any, on the results of the analysis. (g) Considers the fully burdened cost of energy (FBCE), in cases where FBCE is a significant discriminator among alternatives. (2) Whether additional analysis is required. (3) How the AoA results will be used to influence the direction of the program. d. The final AoA will also be provided to and reviewed by the requirements validation authority prior to the Milestone A decision or the release of the request for proposals RFP for the Technology Maturation and Risk Reduction Phase activities. The requirements validation authority will, at a minimum: (1) Assess how well the recommended alternative satisfies validated requirements in the most cost effective manner for the warfighter. (2) Identify any opportunities to adjust or align capability requirements for better synergy across the joint force capabilities. (3) In accordance with the responsibilities identified in title 10 of U.S. Code Title 10, U.S.C. (Reference (g) (h)), offer alternative recommendations to best meet the validated capability requirements. Change 2, 02/02/2017 140 ENCLOSURE 9

DoDI 5000.02, January 7, 2015 ENCLOSURE 10 COST ESTIMATING AND REPORTING 1. PURPOSE. This enclosure describes the primary tools and methods that the DoD uses to ensure that the most cost-effective solution to a validated capability need is chosen, budgets are adequate, and viable cost saving opportunities through multi-year contracting are exploited. 2. COST ESTIMATION a. Per 10 U.S.C. 2334 (Reference (g) (h)) and DoD Directive 5105.84 (Reference (bp)), the Director of Cost Assessment and Program Evaluation (DCAPE) provides policies and procedures for the conduct of cost estimates and cost analyses for all DoD acquisition programs, including issuance of guidance relating to program life-cycle cost estimation and risk analysis; reviews cost estimates and cost analyses conducted in connection with Major Defense Acquisition Programs (MDAPs) and Major Automated Information System (MAIS) programs; and leads the development of DoD cost community training. The procedures associated with these policies are detailed in DoD Manual 5000.4-M DoD Instruction 5000.73 (Reference (w)), DoD Manual 5000.04-M-1 (Reference (at)), and the Office of the Secretary of Defense, Cost Assessment and Program Evaluation, “Operating and Support Cost-Estimating Guide” (Reference (bq)). (1) The DCAPE conducts Independent Cost Estimates (ICEs) and cost analyses for MDAPs for which the Under Secretary of Defense for Acquisition, Technology and Logistics (USD(AT&L)) is the Milestone Decision Authority (MDA) and as requested by the MDA for other MDAPs: (a) In advance of any decision to enter grant Milestone A or Milestone B approval or entry into LRIP or full-rate production. (b) In advance of any certification pursuant to sections 2366a, 2366b, or 2433a of title 10 U.S. Code 10 U.S.C. 2433a (Reference (h)). the MDA. (c) At any other time considered appropriate by the DCAPE or upon the request of (2) The DCAPE conducts ICEs and cost analyses for MAIS programs for which the USD(AT&L) is the MDA and as requested by the MDA for other MAIS programs in advance of: (a) Any In advance of any report pursuant to paragraph (f) of 10 U.S.C. 2445c (Reference (h)). (b) At any other time considered appropriate by the DCAPE or upon the request of the MDA. Change 2, 02/02/2017 141 ENCLOSURE 10

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