Credible Space Cost Estimating Policy for NASA: Making Sensible Requirements Work

Abstract

With the introduction of the 2008 NASA cost estimating handbook (CEH) comes a new responsibility. The 2008 CEH provides credible cost estimating policy for NASA which has been streamlined to make references easy to find and new initiatives simple to understand and communicate to others. The challenge is one of implementation. The cost estimating capability at NASA has reached a point of maturity. Program and Project Managers have come to expect the involvement of the cost estimators on their team. Major programs including Constellation have written Affordability Plans and conducted Cost Confidence Level Assessments for their programs. The NASA Administrator understands and expects to see probabilistic cost estimates. Cost has a much wider audience at NASA than ever before. The initiatives and new policies have been created by the experts within and adopted by the agency. Now the challenge is for all to consistently interpret and implement the policies resulting in cost effective programs for NASA. The NASA CEH contains the details introduced in NASA Program Requirement (NPR) 7120.5d. This paper focuses on the streamlined requirements of the 2008 NASA CEH and the approach the cost estimators at NASA are using to implement these requirements to a wider audience. Once this was a reference for the cost community, now it has become a sensible requirement for successful programs - and the cost estimators are the responsible ambassadors for this policy.