Application and refinement of the early lifecycle cost estimation model: A case study of the JLTV

Abstract

The United States Department of Defense (DoD) is continuously improving its fiscal stewardship. Engineered Resilient Systems (ERS) strives to provide the DoD with comprehensive analysis of systems throughout the acquisition process. In this pursuit of this financial efficiency, ERS has decided to build a cost complement through parametric modeling. While there already have been strides towards better cost estimation techniques, the Early Lifecycle Cost Estimation (ELCE) model represents a unique attempt to provide a cost estimate for an entire system lifecycle at a pre-milestone A (PM­A) stage. This paper specifically demonstrates the ELCE model using cost data from the Joint Light Tactical Vehicle (JLTV), establishing the ability of the model to expand beyond initial calibration of the first proof of concept. Utilizing the uniquely engineered inputs for PM-A cost estimation, this research demonstrated the capability of the model to predict lifecycle cost for multiple systems. As a second proof of concept, the JLTV demonstrates the expandability of the ELCE model, which identifies a potential method for improvement in current PM-A cost estimation techniques.