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Organizational and Functions Manual

Cost and Economics
Office of the Deputy Assistant Secretary of the Army

Updated September 2010  The Deputy Assistant Secretary of the Army for Cost and Economics (DASA-CE) is the principal advisor to the Assistant Secretary of the Army (Financial Management and Comptroller) (ASA (FM&C)) on all Army cost and economic analysis activities. The specific duties of the DASA-CE are to:

  1. Develop, implement and direct the U.S. Army Cost and Economic Analysis Program as it relates to all financial management activities, to include establishing cost and economic analysis policies, methods, and procedures.
  2. Develop statutory Independent Cost Estimates (ICEs) and Component Cost Analyses (CCAs) of weapon and information systems. Conduct independent reviews and validation of Business Case Analyses, Economic Analyses, and Special Cost Studies of major Weapon and Information Systems, Force Structure, and Operating and Support cost. Serve as the Cost and Economics advisor for Army Study Advisory Groups (SAGs).
  3. Chair and oversee the Army Cost Review Board, develop and approve the Army Cost Position for all major Acquisition programs. Conduct in-depth risk analyses of major Army programs as associated with costs
  4. Develop, implement and direct the Army Cost Research Plan. Develop policy and approve all Army cost research efforts and cost model development.
  5. Develop and maintain cost factors to determine requirements for installation base operations, civilian personnel, and training operating tempo, in support of the Planning, Programming, Budgeting and Execution System (PPBES) processes.
  6. Provide Army policy, guidance and oversight on implementation of the Cost and Software Data Reporting (CSDR) system as described in DoDI 5000.2, DoDD 5000.4 and DoDD 5000.4M-1.
  7. Assist the SECARMY in establishing performance measures reported externally to the Army and tracking their results.
  8. Implement Cost Management principles in the Army's Support Business Areas to assist local managers in the decision making process and to foster a cost culture.
The office of the DASA-CE is organized into the Programs and Strategy Directorate, the Acquisition Costing Directorate, and the Cost Review Board Office.
  • Programs and Strategy Directorate has four Divisions responsible for the following missions:
    1. Cost and Performance Management Division.
      • Develop managerial costing policy and guidelines, provide guidance to ASA (FM&C) and Army Staff and ensure Army is acting in accordance with OSD programs.
      • Develop Army cost management policies, procedures and models for implementing Army Enterprise Resource Planning (ERP) systems, including GFEBS, GCSS-Army, and LMP.
      • Implement the Army Cost Management program. Monitor implementation and manage progress reports to the VCSA and Senior Army Leadership through defined Army Business Areas.
      • Develop, support and conduct Army-wide Cost Management training for approved Army Business Area plans.
      • Approve Cost Management Implementation Plans, evaluate implementation, provide model assessments, conduct limited implementation prototypes and support the development of organizational cost management programs.
      • Provide support to Army Performance Management Coordinator. Serve as the focal point to coordinate and disseminate Army performance metrics, their association with budget justification materials and external reports, including: Annual Financial Statements, the DoD Citizens' Report and Performance Budgets.
      • Responsible for implementing MID 901 (Establishing Performance Outcomes and Tracking Performance Results for the Department of Defense) and MID 910 (Budget and Performance Integration Initiative) in the Army.
      • Serve as the ASA(FM&C) lead for updating the ASA (FM&C) Strategic Priorities.
      • Serve as the Army representative to the President's Management Agenda senior steering group. Prepare Army progress reports for the President's Management Agenda.
      • Serve as the Army's lead for budget and performance integration initiative. Provide guidance and technical support in preparation of performance measures. Recommend use of performance measures in support of program reviews and mid-year reviews.
      • Develop and maintain the Army's Cost & Performance (C&P) Portal to support cost and performance execution analysis.
    2. Unit Mission Costing Division.
      • Provide expert assistance to all Army organizations engaged in force planning activities.
      • Develop force structure/organization cost estimates for Table of Organization and Equipment (TOE), and postulated units.
      • Develop cost and factors handbook for use in the force planning process and in support of various cost and economic analyses.
      • Maintain the Force and Organizational Cost Estimating System (FORCES) model and the Army Contingency Operations Cost Model.
      • Publish cost databases and cost factors for TOE units.
      • Develop and maintain operating and support cost factors, OPTEMPO rates, and associated databases for PPBES.
      • Implement the Army's Visibility and Management of Operating and Support Cost (VAMOSC) program as required by DoD.
      • Manage the development and maintenance of the Operating and Support Management Information System (OSMIS) materiel system cost database and publish the Army's OSMIS cost factors.
    3. Installation and Personnel Costing Division.
      • Develop Cost Estimating Relationships (CERs) for Installation Services using Standard Service Costing (SSC). Serve as the Army's cost and performance expert in support of the Army Chief of Staff for Installation Management, and HQDA Functional Proponents.
      • Provide guidance and expertise in the development and collection of installation Service cost and performance through Service Based Costing (SBC), Installation Status Report, and other installation systems.
      • Conduct Independent Cost Analyses, validation and review of HQDA base operations, facilities, infrastructure studies, and decisions and programs.
      • Develop new and improved approaches to installation cost and performance analysis in support of continuous improvement, efficiencies and effectiveness in base operations, and support to the Army's Performance Measurement Process.
      • Develop the Army's Civilian Pay Rates for Program and Budget. Review and reconcile civilian pay execution and manpower, and publish and post rate tables for Army-wide use in support of PPBES with civilian pay cost factors (Rates).
      • Develop, enhance and maintain the Army Military-Civilian Cost System (AMCOS) tool in support of cost analysis studies and estimates throughout the army.
      • Prepare independent military and civilian personnel cost estimates in support of HQDA decisions, studies, analyses and department level responses.
    4. Cost and Resource Integration Division.
      • Integrate cost as a consideration in analysis of all Doctrine, Organization, Training, Materiel, Leadership, Personnel, Facilities(DOTML-PF) domains.
      • Incorporate cost/benefit analysis into all resource decision-making processes at all Army levels and decision forums to include Army Campaign Plan; Planning, Programming, Budgeting Committee; Budget Requirements Process; Program Executive Groups; and Program Budget Advisory Committee.
      • Publish policies, guidance and procedures, applicable to all Army organizations, for cost-benefit analysis to include AR 1-1; Army Programming Guidance Memorandum; Technical Guidance Memo; Concept Plan Guidance; and Army Campaign Plan.
      • Develop policies and procedures for cost estimation, to include the U.S. Army Cost Benefit Analysis Guide and the Budgetary and Cost Template for Legislative Proposals.
      • Implement procedures to better link the programming (POM) and the budgeting (BES/PB) processes to the cost analysis functions performed by DASA-CE.
      • Review and analyze cost methodologies and models used to build requirements in order to identify problems which will cause near term unfunded requirements.
      • Review, analyze and/or work emerging Army initiatives and legislative proposals to validate cost estimates and to ensure application of sound cost methodology.
      • Serve as Executive Secretary of the Cost-Benefit Analysis Review Board, whose role is to ensure that no significant resource-related issue is decided without a thorough review of the costs, its projected benefits, and the trade-offs that may be required to pay for it. The CBARB reviews CBAs on unfunded requirements and new and expanded program proposals submitted to senior Army leadership, that are submitted in response to congressional, OSD, USA/VCSA, APGM or TGM requirements; as a part of FDU or BOIP actions; as a part of ACP, BRP, PEG, PBAT, or AR2B initiatives; or a part of acquisition actions not associated with a decision milestone.
      • Provide programmatic support to various Army programs, including the Army Mass Transportation Benefit Program, Army Study Program, and Army Senior Energy Counsel Working Group.
      • Support the Executive Secretary of the Army Enterprise Board and the Army Management Enterprise Board, and the Chief Management Officer responsibilities of the Under Secretary of the Army.
  • Acquisition Costing Directorate has three Divisions responsible for the following missions:
    1. Weapon Systems Costing Division:
      • Develop Life Cycle Cost Estimates (LCCE) for major Army weapon systems to include:
        • Component Cost Analyses (CCAs) for the Army's Acquisition Category 1D (ACAT 1D) programs.
        • Independent Cost Estimates (ICEs) for the Army's Acquisition Category 1C (ACAT 1C) programs.
        • Systems going to an Army System Acquisition Review Council (ASARC) or of special interest to the Army Acquisition Executive (AAE).
        • Multi-Service and/or Multi-National Programs.
        • Missile Defense Agency for the Cost Review Board.
      • Participate in the Army Cost Review Board process to reconcile cost estimates and to develop the recommended Army Cost Position (ACP) for selected Army systems.
      • Coordinate with the OSD Cost Analysis Improvement Group (CAIG) and the Program Manager (PM) on major weapon systems prior to milestone decisions.
      • Determine the reasonableness of estimated costs for selected Army major weapon system programs in support of the Planning, Programming, Budgeting and Execution System (PPBES) process.
      • Provide cost input or certification of cost inputs and or validation of cost methodologies for Analyses of Alternatives (AOAs).
      • Review and comment on the accuracy and integrity of cost related documents, such as the Acquisition Strategy Report (ASR), Concept Development Document (CDD), Cost Analysis Requirements Document (CARD), Selected Acquisition Reports (SARs) and Acquisition Program Baselines (APBs).
      • Administer historical cost data collections and facilitate inclusion into the Automated Cost Database (ACDB).
      • Perform analytical support for various Army initiatives (e.g., Total Ownership Cost and special studies dealing with aircraft, strategic defense, missiles, vehicles, ammunition, and materiel systems) in support of the Army staff.
    2. Command, Control, Communications and Computers, Intelligence, Surveillance and Reconnaissance Costing Division.
      • Develop Life Cycle Cost Estimates for major Automated Information Systems (AISs) and Communications-Electronics Systems to include:
        • Component Cost Analyses (CCAs) for the Army's Acquisition Category 1D (ACAT 1D) and ACAT 1AM programs.
        • Independent Cost Estimates (ICEs) for the Army's Acquisition Category 1C (ACAT 1C) programs.
        • CCAs for multi-Service programs where Army is the lead service/executive agent, or where a significant commitment of Army resources is required.
      • Review the costs and benefits of Economic Analyses (EAs) for all AISs.
      • Review Economic Analyses for C4ISR or Information Technology programs/initiatives in support of the Army Staff, as required.
      • Provide guidance and assistance to Major commands for preparing Economic Analyses and Cost Benefit Analyses (CBAs) for AISs and Communications-Electronics Systems.
      • Determine the reasonableness of estimated costs for C4ISR programs and the Chemical Demilitarization program in support of the PPBES process.
      • Provide cost input or certification of costs for Analyses of Alternatives (AOAs).
      • Review and comment on the accuracy and integrity of cost related documents, such as the Selected Acquisition Reports (SARs) and Acquisition Program Baselines (APBs).
      • Administer historical cost data collections and facilitate inclusion into the Automated Cost Database (ACDB) for the communications-electronics and AIS commodity areas.
      • Perform analytical support for various Army initiatives (e.g., Total Ownership Cost) and special studies dealing with emerging technologies, business process changes, and information resource management policy and procedures) in support of the Army staff.
      • Participate in the Army Cost Review Board process to reconcile cost estimates and to develop the recommended Army Cost Position (ACP) for selected Army systems.
      • Coordinate with the OSD Cost Analysis Improvement Group (CAIG) and the Program Manager (PM) on major weapon systems prior to milestone decisions.
    3. Cost Policy and Research Division.
      • Develop, implement and manage the Army centrally funded Cost Research Program.
      • Serve as the Contracting Officer's Representative for all ODASA-CE contractual actions.
      • Serve as the Army's clearinghouse for cost research information.
      • Develop, evaluate, procure and distribute Cost Analysis models and tools for Army wide use. Provide training on models and tools.
      • Collects and configure cost data, cost factors, and Cost Estimating Relationships (CERs) as input to build data bases for use with Cost Analysis tools.
      • Develop policy, review and approve all Army contracted cost research efforts and cost model development.
      • Provide guidance, oversight or management of cost research and model development performed by other organizations.
      • Establish Cost and Economic Analysis policies.
      • Provide Army policy, guidance and oversight on implementation of the Cost and Software Data Reporting (CSDR) system as described in DoDI 5000.2, DoDD 5000.4 and DoDD 5000.4M-1.
      • Manage the ODASA-CE automation program and information management system.
      • Develop and manage the ODASA-CE knowledge management system.


  • Cost Review Board Office.
    • Develop the Army Cost Position (ACP) and Cost Analysis Brief (CAB) for selected major Army programs.
    • Chair the Cost Review Board Working Group (CRBWG).
    • Conduct cost risk analyses for selected major Army programs.
    • Develop Army cost risk policy, provide policy guidance, and review of the Army's cost risk program.
    • Conduct environmental cost analyses for selected Army programs.
    • Conduct Special Studies and Analyses as requested by HQDA.

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