An Analytical Synopsis of Dr. Ashton Carter's "Should-Cost" Initiatives
Loading...
Authors
Yoder, Cory
Subjects
Advisors
Date of Issue
2013-04-01
Date
Publisher
Monterey, CA; Naval Postgraduate School
Language
Abstract
Dr. Ashton Carter, Under Secretary of Defense for Acquisition, Technology, and Logistics (USD [AT&L]), and Robert F. Hale, Under Secretary of Defense (Comptroller/Chief Financial Officer), issued a Joint memorandum on April 22, 2011, titled Joint Memorandum on Saving Related to “Should-Cost.” As iterated in the memorandum, Dr. Carter’s goal for the shouldcost initiative is to ensure that program managers (PMs) drive productivity improvements into their programs during contract negotiations and throughout program execution and sustainment. This is achievable, according to Dr. Carter, if PMs continuously perform shouldcost analysis that scrutinizes every element of government and contractor cost. In addition to the Joint memorandum, Dr. Carter issued a second memorandum on April 22, 2011, for acquisition and logistics professionals, titled Implementation of Will-Cost and Should-Cost Management. This guidance is applicable for all acquisition category (ACAT) I, II, and III programs. The purpose of this research is to examine the potential impacts this and related directives have on the contracting community’s ability to request, acquire, audit, and utilize data germane to contract negotiations and management and whether there may be inherent potential conflicts with the commercial item acquisition provisions of Federal Acquisition Regulation (FAR) Part 12 and the contract pricing initiatives of FAR Part 15 to reduce reliance on the Truth in Negotiations Act (TINA) requirements for certified cost and pricing data and cost accounting standards (CAS), and explore strategies for implementing the directive effectively. Additionally, the research determines the nature and extent of any potential impacts on the Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) at supporting the should-cost effort.
Type
Report
Description
Disclaimer: The views represented in this report are those of the authors and do not reflect the official policy position of the Navy, the Department of Defense, or the federal government.
Excerpt from the Proceedings of the Tenth Annual Acquisition Research Symposium Cost Estimating
Excerpt from the Proceedings of the Tenth Annual Acquisition Research Symposium Cost Estimating
Series/Report No
Department
Identifiers
NPS Report Number
NPS-CE-13-C10P04R04-057
Sponsors
Prepared for the Naval Postgraduate School, Monterey, CA 93943.
Funding
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.