Appendix H NASA COST DATA REQUIREMENT DESCRIPTION (DRDs)

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.....The second Stage in Continuous Cost-Risk Management is Developing the feedback to manage the cost-risks. Since hardware contractors are selected to develop NASA systems, they must be informed about the potential cost-risk impacts identified by the NASA cost teams for their attention, monitoring, management, and reporting to the NASA project office. They must be informed in the Request for Proposal (RFP) Data Requests (DR) to produce multiple products that reflect the status and trends of these potential cost-risks. For example, as part of the CADRe, they will be required to produce a Life Cycle Cost Estimate (LCCE) for the proposal and LCCE updates at significant contract milestones (at least annually) as part of the contractual effort. The “S”-curve products of these requirements will enable the measurement of variance changes in the cost-risk distribution over time reflecting the management of risk and cost-risk. The CADRe will also require that initial key technical parameters, and changes to them over time, be documented along with actual costs associated with all WBS elements. These data will eventually populate the One NASA Cost Engineering (ONCE) database, keeping a record of project cost behavior for updating NASA cost models and available for cost analysis. Requirements to monitor, manage, and report monthly on the top medium and high-risk WBS elements identified during the Preparing Stage will be included. When required, a monthly earned value report will also be in the RFP, requiring performance measurement, variance analysis and corrective action reporting on all WBS elements, with a special focus on medium and high-risk WBS elements. These reports will require monthly Estimates at Completion (EAC) on all elements with a special focus on medium and high-risk WBS elements. Electronic access to these data will also be required. Other sources for monitoring and managing the top medium and high-risk WBS elements can come from Technical Performance Measure (TPM), Risk Management, Technical Interchange Meeting (TIM), Integrated Product Team (IPT) and Probability Risk Assessment reports. Based in part on the way bidders address these RFP requirements in the cost proposals submitted, NASA will select a winning bidder and set up a post-award meeting with the selected contractor to verify the proposed cost-risk management methods. If EVM is required on the effort, the meeting at which this discussion takes place (along with baseline validation) is called an Integrated Baseline Review (IBR). Participants in Developing cost-risk feedback are the cost estimators, project engineers, project managers, procurement analysts and EVM specialists.