Defense Business Systems (DBS) Model

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Cost & Funding

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Each page in this pathway presents a wealth of curated knowledge from acquisition policies, guides, templates, training, reports, websites, case studies, and other resources. It also provides a framework for functional experts and practitioners across DoD to contribute to the collective knowledge base. This site aggregates official DoD policies, guides, references, and more.

DoD and Service policy is indicated by a BLUE vertical line.

Directly quoted material is preceeded with a link to the Reference Source.

Planning and Funding

Reference Source: DoDI 5000.75 4.1.e.

 

Every phase outlined in this document will be funded in the planning, programming, budget, and execution process. To facilitate this, functional capability and IT portfolio program elements will be established by Components to fund business need definition and business solution design efforts. Funding in the program objective memorandum will represent the work to be done across the life cycle, starting with requirements development through deployment and capability support.

 

Organization Execution Plan

Reference Source: Defense Business Systems Investment Management Guidance Section 2.2

 

The primary focus of the Organizational Execution Plan (OEP) is the annual identification and prioritization of DBS investments over the period of the current FYDP as aligned with the strategic direction from applicable Functional Strategies. OEPs represent the ongoing results of an organization’s Capital Planning and Investment Control (CPIC) effort for the analysis, selection, control, and evaluation of its portfolio of DBS used to support business operations focusing on the year of execution. The results of an organization’s plan for managing its portfolio of business IT investments in alignment with the Functional Strategies and Agency Strategic Plan (ASP) are also represented.

As a result of the CPIC control and evaluation phases, the OEP highlights changes from the previous plan to help demonstrate aspects of component compliance with 10 U.S.C. § 2222. The OEP certification review is performed annually on the approaching fiscal year of execution.

OEPs include data from authoritative sources that help support investment management decisions.

Authoritative Data Sources

Authoritative data sources table for investment management decisions. Identifies source, type (data base or portal), and information contained.

In addition to Compliance, Strategic Alignment, Utility, and Architectural Alignment, Cost is a criteria used to evaluate OEPs for DBS Certification.

Cost: The Defense Business Council (DBC) will assess cost and proposed resources in the context of the improvements in business operations and cost savings using criteria established by the Pre-Certification Authorities (PCA) and the DBC. Criteria will include performance against established measures for the estimated ROI. Assessment will also be determined from a CPIC evaluate phase perspective for current business costs and IT lifecycle current services costs.

The total DBS investment cost includes hardware and software procurement, licensing and operation costs, design, development and deployment costs, full-time equivalent military and civilian costs, and help desk and program support activity. Cost will be reflected using budget data, data derived from the OEP submission, and additional information.

Cost Estimating

Reference Source: DoDI 5000.73 3.1.c

 

CAPE may conduct a cost estimate for DBS at DCAPE’s discretion. For all other DBS, the Service Cost Agency (SCA) or, if delegated by the SCA, the designated organization will conduct cost analyses for each phase of the business capability acquisition cycle and to support authority to proceed decision points in accordance with guidance issued by the relevant SCA. The cost analyses may include cost impact studies, cost benefit analyses, rough order of magnitude estimates, analyses of alternatives, cost performance parameters, and the program baseline cost.

 

In the Functional Requirements and Acquisition Planning Phase:

Reference Source: DoDI 5000.75 4.2 c.(1)(c)

 

The appropriate cost agency will support development of alternatives and determination of the solution approach that best fits the needs and organizational goals based on economic analysis in accordance with DoDI 7041.03 Economic Analysis for Decision-Making.

Economic Analysis

Reference Source: DoDI 7041.03, Enclosure 2

 

General Principles

 

A sound economic analysis recognizes that there are alternative ways to meet a given objective and that each alternative requires certain resources and produces certain results. To achieve a systematic evaluation, the economic analysis process uses the following two principles:

 

  • Each reasonable alternative for meeting an objective must be considered, and its life-cycle costs and benefits evaluated.
  • All costs and benefits are adjusted to present value by using discount factors to account for the time value of money. Both the size and the timing of costs and benefits are important.

 

Refer to Enclosure 2 of DoDI 7041.03 for Procedures for Economic Analysis to include elements, identification of alternatives, and analytical methodology and criteria.

Cost Reporting

OSD CAPE’s Cost Assessment Data Enterprise (CADE) provides links to CSDR policy and reporting guidance, DD 2794 CSDR Plan, CSDR Plan standards, CARD guidance, etc.

Cost Analysis Guidance And Procedures (DoDI 5000.73)

Reference Source: DoDI 5000.73 Table 1

 

DBS Program Cost Data Reporting Requirements
(Extracted from DoDI 5000.73, Table 1)
REPORT REQUIRED WHEN REQUIRED
Program Resource
Distribution Table
High-risk or high-technical-interest, as determined by the CSDR plan approval authority, or software contracts priced between $20 million and $50 million, then-year dollars.
Contractor Cost
Data Report

Information System (IS) Programs

All contracts, subcontracts, government-performed efforts, and major components (e.g., government furnished equipment), regardless of acquisition phase and contract type, including non-FAR agreements, valued at more than $50 million, then-year dollars, for IS programs anticipated to exceed $100 million, then-year dollars, in acquisition expenditures.

High-risk or high-technical-interest, as determined by the CSDR plan approval authority, or software contracts priced between $20 million and $50 million, then-year dollars.

Not required under the following conditions:

•Contracts on programs with anticipated acquisition expenditures less than $100 million, then-year dollars.

•Contracts priced below $20 million, then-year dollars.

•PM requests and obtains approval from the DDCA for a reporting waiver (e.g., procurement of commercial systems).

Software Resources
Data Report

Development and Enterprise Resource Planning Efforts

All contracts, subcontracts, and government-performed efforts, regardless of acquisition phase and contract type, including non-FAR agreements, for developing and/or producing software valued at more than $20 million, then-year dollars, for:

•Programs that exceed the ACAT I-II level thresholds.

•IS programs anticipated to exceed $100 million, then-year dollars, in acquisition expenditures.

High-risk or high-technical-interest software efforts estimated below $20 million, then-year dollars, as determined by the CSDR plan approval authority, if the overall effort inclusive of non-software efforts exceeds $20 million, then-year dollars.

Maintenance Efforts

For all contracts, subcontracts, and government-performed efforts, regardless of acquisition phase and contract type, including non-FAR agreements, for:

• Programs with previous SRDR development or enterprise resource planning requirements or software maintenance efforts of more than $20 million, then-year dollars.

• Programs that exceed the ACAT I-II level thresholds.

• IS programs anticipated to exceed $100 million, then-year dollars, in acquisition expenditures.

Contractor Business
Data Report
Required for contractor business entities (e.g., plant, site, or business unit) responsible for contracts or subcontracts with CSDR requirements that are expected to exceed $250 million, then-year dollars.
Maintenance and
Repair
Parts
Data Report

All sustainment contracts, government-performed efforts, and major components (e.g., government furnished equipment), regardless of contract type, including non-FAR agreements, valued at more than $50 million, then-year dollars, for programs that exceed ACAT I-II level thresholds and

IS programs that are anticipated to exceed $100 million, then-year dollars, when equivalent information cannot be provided by the program manager, at the discretion of the CSDR plan approval authority.

Technical Data
Report

All contracts, government-performed efforts, and major components (e.g., government furnished equipment), regardless of acquisition phase and contract type, including non-FAR agreements, valued at more than $50 million, then-year dollars, for programs that exceed the ACAT I and II level threshold and

IS programs anticipated to exceed $100 million, then-year dollars, in acquisition expenditures when equivalent information cannot be provided by the program manager, at the discretion of the CSDR plan approval authority.

The following notes apply to all reports in this table:

1. For CSDR purposes, contract value represents the estimated cost at contract completion (i.e., initial contract award plus all expected authorized contract changes) and is based on the assumption that all contract options will be exercised. If an indefinite delivery, indefinite quantity contract; a basic ordering agreement; a blanket purchase agreement; or a similar type of contract is estimated to exceed the designated threshold in total, the cost working group integrated product team, whose membership is defined in DoD 5000.04-M-1, will determine which individual task or delivery orders require CSDRs and if CSDRs are required at the total contract level.

2. If FMS requirements are a portion of a contract that surpasses the reporting thresholds for CSDRs, the FMS content will be reported in addition to the DoD content. If a contract contains only FMS requirements and surpasses the reporting thresholds for CSDRs, the program manager will contact CAPE to determine if CSDRs should be placed on FMS contracts with no DoD content.

3. Contractor Cost Data Reports consist of either the Cost and Hour Report (FlexFile) and the Quantity Data Report or the DD Form 1921 series of forms and contract work breakdown structure dictionary, subject to the requirements in the approved CSDR plan.

4. An IS is a system of computer hardware, computer software, data, or telecommunications that performs functions such as collecting, processing, storing, transmitting, and displaying information. Computer resources, both hardware and software, that are an integral part of a weapon or weapon system are excluded. For the purpose of cost reporting, DBS and software acquisition programs are included in the IS definition.

5. Acquisition expenditures are the estimated total cost for development, procurement, acquisition operations and maintenance, and system-specific military construction

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